FINCA LINKS UP WITH NIDA DATA BASE TO BOOST EFFICIENCY

Finca Chief Executive Officer Issa Ngwegwe

FINCA Microfinance Bank has simplified account opening and credit processing after linking up with National Identification Authority (NIDA) data base.

Finca Chief Executive Officer Issa Ngwegwe said they have linked their system with NIDA database to enhance efficiency in service provision by simplifying opening account process.

“NIDA system gives KYC (know your customer) data that are needed to us to open an account…their system has simplified our business,” Mr Ngwegwe told reporters over the weekend. He said the system was hassle free and there would be no need to ask for a ten cell leader letter or other guarantee.

FINCA digital transformation has also managed the bank to cut down credit processing days from five to one. The bank, the first to obtain a microfinance licence in the country, created an enterprise credit scoring which is fed up with a customer credit paying information.

“In our system we collect data of a client using our own source plus credit bureau institutions…once a customer scored desired points loan is issued instantly,” the CEO said.

The microfinance institution, with a capacity to issue a loan of up to 220m/- to a client, can issue a credit without collateral but under group lending. FINCA’s customers most operate small businesses repayment rate was over 90 per cent. So far the bank has loaned over 800,000 individuals.

The bank nonperforming loans ratio stands at 4.4 per cent at the end of June below the industry benchmark of 5.0 per cent.

Talking about accessing the bank services, the CEO said at moment institution has no Automated Teller Machine outlet instead using mobile phones customized payment platform and agency banking, which is easy to be access by many in the rural areas.

DailyNews