AECB Enhances Credit Reports With Salary Data For 3.71 Million Customers

The Al Etihad Credit Bureau (AECB) has recently announced a significant milestone in its operations, revealing that the number of customers with credit reports containing monthly salary information has surged to 3.71 million by the end of the first quarter of 2024. This development underscores the bureau's expanding role in the UAE's financial landscape since its inception.

Marwan Ahmed Lutfi, CEO of AECB, shared with the Emirates News Agency (WAM) that the demand for credit reports and scores has seen a remarkable increase, doubling from one million requests in 2015 to over 10 million in 2023. Initially serving banks exclusively, AECB has broadened its horizons to cater to a diverse range of sectors, including economic, consumer, and government entities. This diversification means that now, 20 percent of all credit reports and scores issued annually benefit a wider audience.

Lutfi highlighted that 101 entities now contribute credit information to the bureau. This list encompasses banks, finance companies, telecommunications firms, state courts, and utility providers like the Emirates Water and Electricity Company, Abu Dhabi Distribution Company, and Al Ain Distribution Company. This collaboration ensures a rich database for assessing creditworthiness.

The CEO emphasized the critical role of financial obligation data in evaluating customer creditworthiness. Such assessments are vital for financial institutions and government agencies to allocate administrative resources effectively and refine internal policies. AECB's commitment to offering a detailed overview in its reports is part of its ongoing efforts to enhance credit reporting mechanisms.

According to Lutfi, incorporating salary data into credit reports provides stakeholders with a clearer understanding of an individual's financial health and repayment capacity. This approach goes beyond banking obligations like loans and credit cards to include essential living expenses—electricity and water bills, telecommunications services, and rental commitments—offering a holistic view of a person's financial obligations.

This expansion of services and data integration by AECB not only enhances the accuracy of credit assessments but also supports the UAE's broader economic stability by promoting responsible lending and borrowing practices across various sectors.

With inputs from WAM