Tuesday, June 09, 2020 / 12:45 PM / Credit Registry

Nigeria's largest credit bureau,Credit Registry, has launched an API(application programming interface) service to validate the financialcredibility of cheque issuers to improve confidence in lending.

The product launch is in line with the Central Bank ofNigeria's directive that all financial institutions perform a status check onpotential customers to ensure they are not serial dud cheque issuers beforeopening an account, approving them as guarantors to credit facilities orgranting of credit to them.

The Dud Cheque API service protects lenders, SMEs,retailers and other organizations from accepting cheques from serial dishonoured (Dud) cheque issuersespecially as the economic challenges occasioned by the COVID-19 pandemicbecomes more pervasive. Accepting cheques as ameans of payment increases sales andimproves the cash flow for businesses by assuring timely collection of allcredit granted on post-dated cheques.

A first of its kind for the credit reporting industryin Nigeria, CreditRegistry Dud Cheque API is a self-service solution that enables duly enrolledagents carry out necessary dud cheque verifications conveniently and in anautomated fashion. Dud Cheque enquires are performed in real-time through theAPI in addition to the existing web application that has been available since2016.

Speaking on the importance of the service, Dr. AndrewNevin, Chief Economist, PwC said, "We need to commend CreditRegistry with thisimportant step, showing how FinTech at its best will improve the financialsystem. This is simple but solves a major problem verifying the accountabilityof cheque issuers. In 2009, PwC recommended the need for robust credit registries in thefinancial ecosystem in Nigeria; of course, CreditRegistry was already thepioneer, having been established in 2003, so it is no surprise to seeCreditRegistry on the cutting edge of technology."

Banks and other institutions that intend to verify thedud cheque risk of their customers in real-time can program to directlyintegrate their bank account opening and/or loan origination systems with thenew Dud Cheque API service to improve turn-around-time and perform batchservices.

Commenting on the overall impact of the service,CreditRegistry's Chief Executive Officer  Mrs. Jameelah Sharrieff-Ayedunsaid "Everyone needs credit at some time. This service simply helps to improvetransparency to reduce the barrier so more people can access credit usingpost-dated cheques as a means for payment. This service not only offers comfortto economic agents advancing credit but also lubricates the economy by ensuringthat accountable individuals and businesses who need credit get it in a fast,easy and inexpensive way. Ultimately, the overall economy benefits."

Each institution can integrate the API to return afile which will specify the number of dud cheques written by any offender.Ultimately, when a search is carried out, the API returns the informationgenerated to the agent to enable instant and efficient decision making.

Customers who are accountable and have no dud chequeissues can be given access to services or products when they present post-datedcheques as a means of future payment.

Subscribers of CreditRegistry can access her DudCheque API Service now through their authorized credentials registered on thebureau.

Related News

1.      Credit Bureaus and Credit Scores

2.     COVID-19 Relief: Credit Registry Offers Free CreditReporting to Lenders

3.     Lending Still Possible During COVID-19 Using CRCCredit Bureau's Automated Service

4.     Double Celebration for CRC Credit Bureau in Quarterone, 2020

5.     ESMA's 2020 Supervision Focuses on Outstanding CreditRatings, Data Quality

6.     CRC Credit Bureau Launches Mobile App to Boost Accessto Credit Information

7.     CRC Credit Bureau Named Best Credit Bureau Nigeria2020 By CFI.co

8.    The Ease of Getting Credit Reforms in Nigeria

9.     CRC Credit Bureau Ltd 10th Anniversary Forum ExaminesCredit Penetration In Nigeria