Consumer lending is set to record a major boost in the country with the introduction of ‘FICO Score’ by CRC Credit Bureau Limited in partnership with Fair Isaac Corporation, an American company with over 50 years of experience in data and analytics.
The Managing Director/Chief Executive Officer, CRC Credit Bureau, Mr. Tunde Popoola, at the unveiling of the ‘FICO Score’ in Lagos on Tuesday, said the development would help banks and other retailers to “appropriately dimension the risk on borrowers who are basically individuals.”
“FICO Score will know the risk level of every borrower and able to dimension whether it is good, excellent, average or bad. And with that, you can now have dimension of relationship you want to have with such an individual,” he said.
Specifically, he said it would enable private individuals to borrow and help lenders to give loans to people who are credit-worthy based on the information they will get from the FICO Score.
According to the CEO, the FICO Score is a three digit score ranging from 300 to 850.
He explained that the higher it was, the better the person was rated and the lower it was the higher the risk that the individual was carrying.
Popoola said, “FICO is the number one credit score solution provider in the world. The company operates in about 90 countries in the world and releases over 100 billion scores every year. This is an opportunity we have been waiting for.
He added, “Those who score between 700 and 850 are excellent people and such people you sell to them at very reasonable price or rate and probably without any condition attached. Those who score around 400 and 500 are considered to be ‘risky’ and they attract higher interest rate because you are carrying risk and such people also attract collateral.”
In his remarks, South Africa Country Manager, FICO, Derick Cluley, described FICO Score as a game changer that had just been introduced to Nigeria.
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