Thailand
Cambodia: Credit markets hit by Coronavirus
Amid the COVID-19 pandemic, credit markets have been affected by the economic slowdown and financial institutions are increasingly moving towards digital delivery models, said Chea Serey, chairwoman of the Credit Bureau Cambodia (CBC) and also the general director of the National Bank of Cambodia.
Digital delivery models refer to online channels of servicing customers. Serey made the remarks at the regular CBC Breakfast Talk with senior leaders from the financial sector to discuss trends and evolving practices on harnessing digitalisation for prudent credit-risk management by financial institutions.
She added that at a time when the country is gearing up for digital innovation, blending digitalisation with credit-risk management allows for generating, tapping and analysing large pools of internal and external data to aid credit-risk assessment.
Among others, such capabilities enable financial institutions to make the most out of industry-wide historical data on borrowers from external sources such as credit-reporting agencies that are generally not available internally to a financial institution, Serey added.
“Leveraging diverse pools of data and analytics enables financial institutions to raise more prudent management of their operations,” she added.
Emphasising the role of traditional as well as alternative data in credit-risk management, Serey said that risk monitoring and assessment for regulatory compliance is increasingly becoming data-centric, enabled by digital technologies for early-warning signalling, contributing to financial-sector stability.
She also recognised the CBC as an important financial infrastructure in the country for credit-risk management and called upon financial sector stakeholders to work together towards facilitating an ecosystem for prudent risk-management practices.
Oeur Sothearoath, chief executive officer of the CBC, highlighted that with the fast-paced changes in market conditions, digitalisation of credit-risk management can help financial institutions to speed up and undertake more transparent and effective risk-profiling, risk-based pricing and portfolio management.
He said the CBC commits to deliver data, analytics and knowledge to enhance the efficiency of credit-risk operations, credit decision-making as well as contribute to financial-sector stability.
“The CBC introduced two new products that blend data and digitalisation for credit-risk management for members of the financial institutions. The second generation of K-Score will be commercially available in the near future within this year,” he said.
K-Score is a number that summarises all information in a borrower’s credit history to enable lenders to quickly assess the potential likelihood of default by borrowers.
According to the CBC, the new version of the Data Analytics Report (DAR) offers business intelligence analytics online dashboards that provide customisable data and graphical views of an institution’s own performance and compare them with the rest of the industry for strategic, tactical and operational planning.
Amid the growth and diversification in the financial sector, the CBC has been providing comprehensive credit reporting, monitoring and analytics solutions to fulfil the critical industry-wide information needs of all lending institutions in Cambodia.
More than 165 members of financial institutions regularly report credit data to the CBC as well as benefit from the CBC’s reporting and analytics services. The CBC’s current portfolio of solutions include consumer and commercial credit reporting, data analytics reports, portfolio reviews, portfolio monitoring, credit scoring, consumer credit indexes and customised solutions.
Source: https://www.khmertimeskh.com/50773796/credit-markets-hit-by-coronavirus/