Νeed to assess borrower's credit behaviour

The important role of Credit Bureaus for national economies and the need to assess the credit behaviour and capacity of a borrower across the range of credit facilities he can receive, was highlighted at a recent annual conference of the European Association of Credit Bureaus “ACCIS”, which was held in Brussels and in which Artemis Credit Bureau, the Cyprus Credit Bureau, participated as a full member of ACCIS from the beginning of its operation.

Artemis Credit Bureau was represented at the conference, on the topic of "Powering access to responsible credit", by its General Manager, Yiannis Tomasides, who told CNA that the inclusion of data from the widest range of credit facility categories is the only way to form a global and complete picture of the financial behaviour of the borrower.

Tomasides said the conference covered a range of topics of concern to the Credit Bureau industry, including upcoming legislative developments at EU level, personal data protection, "as well as developments and innovations in services offered by Credit Bureaus in order to fulfil their core mission, which is the support of responsible lending and responsible borrowing."

"The inclusion of data from the widest range of credit facility categories is the only way to form a complete image of the borrower's financial behaviour, which on the one hand ensures creditors an objective assessment of the borrower's creditworthiness and on the other hand protects the borrower from receiving a new credit facility which, based on his available income and his existing obligations, he cannot service", emphasised Tomasides.

He also referred to the essential role played by Credit Bureaus, as Data Exchange Systems, in the development of the infrastructure of the financial system and, by extension, the economy of a country.

"It is for this reason that Data Exchange Systems are, according to the World Bank, one of the three main pillars of an efficient financial system, contributing to the financial stability of a country," he said.    

Tomasides explained that Credit Bureaus, such as Artemis Credit Bureau, are positioned between credit providers and credit takers (borrowers-consumers) and help both creditors and consumers make more informed decisions.