Mala’a offers Credit Score to assist Credit Risk Management in the Financial sector

MUSCAT, July 1: Oman Credit and Financial Information Centre (Mala’a) offers Credit Bureau services to enhance the creditworthiness of the individuals and corporates in the Sultanate in line with Oman Vision 2040, said Mala’a’s Managing Director Mr. Aadil Al Saadi. This supports financial inclusion by ensuring responsible financing in addition to improved credit risk management.

Al Saadi stated that Mala’a Centre aims to fulfil its objectives by being  Oman’s National Data bank & Reference to All Credit & Financial Information, offering   credit reports, and credit score for individuals and corporates, instant credit decisioning engines and a range of Data Analytics Solutions. The availability of credit scores for Individuals and corporates enables lenders to make informed credit decisions.

He added that Mala’a credit score is dynamic indicator that is generated according to a World-Class scoring engine to reflect the analysis of historical credit information of individuals and corporates based on Oman actual Credit data from the Banking Sector. Mala’a Credit Score is the quantitative measure which ranges from 300 to 900 where the higher number reflects lower risk.

The credit score is a proven World Class System in Advanced & Emerging Markets and supports credit providers in assessing credit risk. The credit score information is based on Oman’s actual Credit Data for the Last 10 Years, and compliant with the World Bank Credit Information Reporting Standards.

“Mala’a contributes through its innovative products to enable access to credit through reliable and accessible credit information. Elaborating on Risk Mitigation, he said that the Mala’a Credit Score is an indicator of the creditworthiness of individuals and corporates, it is a valuable credit risk management tool. The Mala’a Score is dynamic and changes according to credit and financial history. The Credit score is calculated based on the information derived from credit providers taking into consideration over-indebtedness, positive history, and payment behaviour. Al Saadi noted that positive financial and credit behaviours lead to higher credit score.

In addition, work is currently underway to establish online channels for self-service, such as a portal and a smartphone application, which will help individuals and corporates to utilise the centre’s services in the future. It also aims to raise awareness about the financial and credit principles in the Sultanate.

Mala’a’s comprehensive data covers over ten years of corporate and consumer credit history offering credit providers an accurate data source enabling them effective credit risk assessment.

Presently, Gulf Cooperation Council (GCC) member states are in discussions to sharing credit information across-border to enable cross-states and cohesive Business Environment, Al Saadi noted.

It is worth to mention that Mala’a initiative is the deliverable of an ambitious 3-year strategy for an Oman Credit Bureau (OCB), spearheaded by the Central Bank of Oman.