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Forum => Kenya Discussion => Topic started by: RV Pundit on October 19, 2022, 08:25:19 AM

Title: Ruto forces lifting of 4m from crb
Post by: RV Pundit on October 19, 2022, 08:25:19 AM
Safaricom to delist them as we move towards credit scoring
Title: Re: Ruto forces lifting of 4m from crb
Post by: gout on November 25, 2022, 11:07:42 AM
Opus dei needs to call it a day. He is not sold on Hasla unorthodox ideas.

Quote
Last week, the regulator asked the three CRBs in the local market – Metropol, TransUnion and Creditinfo International—to include a standard statement at the top of every credit report indicating that “a customer’s credit score should not be used as the sole reason by a lender to deny a customer a loan”.
https://www.businessdailyafrica.com/bd/economy/a-third-of-borrowers-stay-on-crbs-default-blacklist--4032334

With the fored shenanigans he ought to have gone hard on NCBA. Seems they are kneeling.
Quote
NCBA Bank will write off more than Sh11.25 billion of bad loans under its digital platforms being the hardest-hit lender in the recent banking sector framework aimed at removing Kenyans from negative credit listing.

The lender has said it is engaging borrowers under digital platforms—Fuliza and M-Shwari — who have defaulted on short-term loans to cancel 50 per cent of the amount and repay half within six months.
https://www.businessdailyafrica.com/bd/markets/capital-markets/ncba-writes-off-sh11bn-digital-loans--4032320
Title: Re: Ruto forces lifting of 4m from crb
Post by: hk on November 25, 2022, 01:54:58 PM
NCBA was already separating mobile lending from retail and corporate banking https://www.businessdailyafrica.com/bd/corporate/companies/ncba-plans-new-m-shwari-company-from-banking-unit-3981848, clearly the mobile loans aren't recoverable and had to be written off. It goes to show that mobile lending isn't very lucrative, NCBA needs to focus on borrowers who repay. Going forward loans will only be extended to borrowers who can repay and those borrowers should enjoy lower rates . Basically NCBA is embracing risk based pricing per individual not one rate fits all and only factoring amount.
Unintended consequence a lot more people will be locked out credit access.
Title: Re: Ruto forces lifting of 4m from crb
Post by: RV Pundit on November 25, 2022, 02:10:55 PM
Its better to lock them out of credit than irresponisbly lend them then blacklist them for 7yrs - condemn them out of credit systems - sometimes with loans of 500shs due. These people if their income improves; can start become less risky. Credit blacklisting was wrong. They should now embrace credit scoring that allows people to repair their credit scores..
Quote from: hk on November 25, 2022, 01:54:58 PM
NCBA was already separating mobile lending from retail and corporate banking https://www.businessdailyafrica.com/bd/corporate/companies/ncba-plans-new-m-shwari-company-from-banking-unit-3981848, clearly the mobile loans aren't recoverable and had to be written off. It goes to show that mobile lending isn't very lucrative, NCBA needs to focus on borrowers who repay. Going forward loans will only be extended to borrowers who can repay and those borrowers should enjoy lower rates . Basically NCBA is embracing risk based pricing per individual not one rate fits all and only factoring amount.
Unintended consequence a lot more people will be locked out credit access.
Title: Re: Ruto forces lifting of 4m from crb
Post by: RV Pundit on November 25, 2022, 02:30:18 PM
Ruto is setting himself for failure by going slow on these thugs. They should by now be busy appearing before tribunals, commission of inquries and such

Title: Re: Ruto forces lifting of 4m from crb
Post by: hk on November 25, 2022, 03:02:06 PM
Quote from: RV Pundit on November 25, 2022, 02:10:55 PM
Its better to lock them out of credit than irresponisbly lend them then blacklist them for 7yrs - condemn them out of credit systems - sometimes with loans of 500shs due. These people if their income improves; can start become less risky. Credit blacklisting was wrong. They should now embrace credit scoring that allows people to repair their credit scores..
Quote from: hk on November 25, 2022, 01:54:58 PM
NCBA was already separating mobile lending from retail and corporate banking https://www.businessdailyafrica.com/bd/corporate/companies/ncba-plans-new-m-shwari-company-from-banking-unit-3981848, clearly the mobile loans aren't recoverable and had to be written off. It goes to show that mobile lending isn't very lucrative, NCBA needs to focus on borrowers who repay. Going forward loans will only be extended to borrowers who can repay and those borrowers should enjoy lower rates . Basically NCBA is embracing risk based pricing per individual not one rate fits all and only factoring amount.
Unintended consequence a lot more people will be locked out credit access.
Yes, NCBA being the biggest player should have done better credit analysis. Lending primarily based on Mpesa individual cash flow with fixed interest rates  is terrible business for the lender and the borrower.
Title: Re: Ruto forces lifting of 4m from crb
Post by: sema on November 26, 2022, 06:22:09 AM
Quote
Ruto is setting himself for failure by going slow on these thugs. They should by now be busy appearing before tribunals, commission of inquries and such

Why is he going slow?