As at 9.47am, shares in Credit Bureau Asia were trading 5 cents higher or 4.3% up at $1.22 from its last close price of $1.17 following the launch of its credit bureau in Myanmar.

On Dec 30, the Mainboard-listed company announced that it has launched Myanmar Credit Bureau Limited (MMCB) – the first and only credit bureau in the country.

The Myanmar Credit Bureau operates under a license issued by the Central Bank of Myanmar and is a 60:40 joint venture between MB Investment Limited and NSP Asia Investment Holding Private Limited.

MB Investment was formed by member banks of the Myanmar Banks Association, and NSP Asia Investment Holding is a wholly-owned subsidiary of Credit Bureau Asia.

Following its launch, MMCB will support financial institutions, consumers and Myanmar’s economic development through its implementation of a modern credit reporting system to promote responsible lending in Myanmar and expand access to financing for individuals and businesses.

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MMCB has been collating information gathered from its current members, which are financial institutions in Myanmar, and will progressively widen its membership to include microfinance institutions, non-bank financial institutions and non-bank credit providers. Information collected will include borrowers’ personal and contact information, credit accounts and repayment history as well as any loan collateral information.

SEE: Credit Bureau Asia opens on SGX Mainboard at $1.15

“The formation of the Myanmar Credit Bureau is a significant milestone in Myanmar’s economic development journey. For the first time in the country’s history, we can ensure that customer borrowing risk is properly managed through credit-information sharing between financial institutions,” says U Zaw Lin Aung, Chairman of MMCB.

“By further enhancing the integrity and transparency of Myanmar’s financial sector, we are not only supporting the Central Bank of Myanmar’s goal to enhance the risk management capabilities of the banks but are also expanding access to finance for everyday consumers and small businesses nationwide,” adds Aung.

“We see enormous growth potential in Myanmar, with its real GDP per capita expected to grow at CAGR of 5.0% between 2019 and 2024, and its banked population estimated at 26% as at 2017 also expected to grow,” says Credit Bureau Asia’s executive chairman and CEO Kevin Koo.

“According to Frost & Sullivan, the market size for MMCB is forecasted to grow at a CAGR of 69.2% from 2020 to 2024 to S$16.8 million, with its estimated population of 54.7 million people by 2024 and an urban population expected to increase to 32.5% of the total population,” Koo adds.

“In its first year of operations, MMCB will introduce core products such as credit reports and monitoring services to licensed financial institutions, and over the following two years, expand its product and service offerings to include scores and data analytics reports”, says Koo.