Credit Bureau (Singapore), the subsidiary of Credit Bureau Asia (CBA), has been designated by the Ministry of Law to be the new operator of the Moneylenders Credit Bureau under the Moneylenders Act.
The news, on June 30, comes after a competitive tender process.
The designation will take effect from July 1.
CBA says any existing services for licensed moneylenders and borrowers will not be affected.
The Moneylenders Credit Bureau, which was set up on March 2016, is a central data repository on borrowers’ loans and repayment records with licensed moneylenders.
The bureau helps licensed moneylenders make informed decisions when considering loan applications from prospective borrowers.
It also helps borrowers better manage their loans and financial situation.
Individuals can also register for self-exclusion to exclude themselves from applying for unsecured loans from licensed moneylenders.
The bureau keeps its borrowers’ data under strict confidentiality. The data can only be assessed by licensed moneylenders for assessing loans of borrowers. Borrowers can only access their own loan information reports.
The data will be used by the Ministry of Law and the Registry of Moneylenders.
In the same statement, Credit Bureau (Singapore) says it intends to promote financial literacy amongst the public in partnership with the Credit Association of Singapore (CAS).
Credit Bureau (Singapore) also aims to make the moneylending industry more secure and guard against any scam activities through public education and regular industry engagements. This is done with the support of the Registry of Moneylenders.
"CAS is elated and privileged to work with Credit Bureau (Singapore) on the Moneylenders Credit Bureau. It is heartening to note that CBS is very committed to the betterment of the moneylending industry and that plans to roll out value-added services are in the pipeline. This will indeed augur well for our collaboration. CAS is confident that our collaboration will be a fruitful one and that it will grow from strength to strength, says Peter Tan, president of CAS.
“In addition to providing consumer and entity borrower credit reports, Credit Bureau (Singapore) has future plans to work with the Ministry of Law and the Registry of Moneylenders to introduce value-added services such as credit monitoring services and industry data analysis reports for licensed moneylenders to improve competitiveness and maximise the efficiency of their services,” says William Lim, executive director of Credit Bureau (Singapore).
“We will also work closely with the Credit Association of Singapore to enhance the services for its clients”, Lim adds.
Shares in Credit Bureau Asia closed 1 cent lower or 0.8% down at $1.29 on June 30.