Banks and other financial institutions in Namibia will now have the quality of their credit information assessed monthly under a new scoring system introduced by Creditinfo Bureau Namibia to improve reporting accuracy, reduce errors and strengthen lending decisions.
Creditinfo Bureau Namibia Executive Director Karin Jansen van Vuuren said the Data Quality Index (DQI) would measure and compare the quality of credit information submitted by financial institutions, allowing weaknesses in reporting practices to be identified and addressed before they affect consumers.
Speaking at the 3rd Africa Credit and Risk Reporting Conference, Jansen van Vuuren said the index would establish a common standard for assessing credit data quality across the financial sector, with institutions evaluated against 30 measurable variables.
“The Data Quality Index (DQI) aims to turn data quality into something we can measure and compare across the market. Every credit score, every lending decision and every report we produce is only as good as the data behind it,” she said.
The index will assess financial institutions against three key measures: completeness, consistency and timeliness.
These will determine whether institutions submit all required credit information, whether the records are accurate and logically consistent, and whether submissions are made within the required reporting periods.
Jansen van Vuuren said each institution would receive a monthly scorecard reflecting its performance, changes in its data quality score and areas requiring improvement.
The assessments will also establish performance benchmarks, allowing Creditinfo to monitor whether institutions are improving the accuracy and reliability of their credit reporting over time.
She said the system was introduced in response to challenges associated with inaccurate or incomplete credit records, which are often identified only after consumers lodge complaints or dispute information contained in their credit reports.
“The problem is that we usually identify data problems too late. They emerge through a dispute, a consumer query or an escalation. By then, unfortunately, the damage has already been done, and we are left fixing the problem one record at a time,” she said.
The index will also identify inconsistencies in credit records, including accounts reported as being in good standing despite outstanding payments, which could indicate reporting errors or potential fraud.
Jansen van Vuuren said the monthly assessments would shift the focus from correcting individual errors after they occur to monitoring and improving the overall quality of information submitted by financial institutions.
“We move from fixing problems to managing data quality. Every major data provider receives a baseline against which its performance can be assessed. This means that discussions about service, oversight and regulation can be based on objective evidence rather than general assumptions,” she said.
She said the scoring system would also strengthen accountability by providing measurable evidence of how well institutions comply with credit reporting standards.
As part of the initiative, Creditinfo recognised financial institutions that demonstrated strong data quality performance.
Bank Windhoek ranked first in the banking category, followed by WesBank in second place and Letshego Bank in third.
In the microfinance category, M Trading secured first place, followed by Leofin Group in second position and Old Mutual in third.
Jansen van Vuuren said improving credit data quality was essential to ensuring that lenders relied on accurate information when assessing borrowers’ creditworthiness and repayment histories.
She said the index would help reduce consumer disputes, improve the reliability of credit assessments and strengthen confidence in Namibia’s credit reporting system.
