KARACHI: Bruce Barton, Advisor to the Board of Data Advantage Group said that consumer credit couldn’t succeed without a proper credit reporting system. Bargon was on a visit to Pakistan recently and gave a talk at a local club on ‘how lenders benefit from a credit bureau’.
He said that it is integral to any consumer lending business to have proper credit reporting system in place without which the level of defaulters will be unmanageable. He said in Australia 95% of the borrowers are in the small and medium-size category and as a result of the services of his company, lenders save in excess of 370 million dollars each year.
Bargon indicated that savings to local credit industry could be significant given that level of defaults in Pakistan are higher than Australia. DataCheck (Pvt) Ltd. is a Pakistani company, which has been assisted by Data Advantage Group of Australia in launching the first consumer credit bureau in Pakistan.
The Managing Director of the Company Tariq Jan said that the Company has signed contracts with two major foreign banks – Citibank and ANZ Grindlays and is scheduled to go into service by mid of August this year. Its services will be available initially to the financial sector and in due course to the non-financial sector as well.