Kathmandu, Feb. 1
Nepal
Rastra Bank (NRB) has signed a Memorandum of Understanding on psychometric
scoring solution with the International Finance Corporation (IFC), a subsidiary
of the World Bank Group.
It said
that the MoU will help in generating credit scores on the basis of individual’s
capacity, behaviour, style and qualification, rather than the credit history.
It is
expected that the psychometric scoring will help to make the financial system
more technology-friendly, simple and promote riskless credit mobilisation, the
NRB said in a statement on Tuesday.
Executive
Director of the Microfinance Institution Supervision Department, Suman Kumar,
and Residential Representative of IFC in Nepal, Babacar Sedikh Faye, signed the
MoU in the presence of Governor of the NRB, Maha Prasad Adhikari.
This
innovative method is being implemented for two years as an experiment in Nepal
with the support from Japan and the United Kingdom.
It will be
applied in the microfinance sector to bring the persons obtaining micro and
retail loan, or micro, small and medium enterprises under the scope of formal
financial services.
The central
bank expressed hope that the new method will help in extending the financial
services to the people currently out of financial access.
“We expect
that this method will make the micro-credit management technology-friendly,”
said Governor Adhikari.
Published in The Rising Nepal daily on 2 February 2022.
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