Theme: Proactive Credit Management and Risk Based Pricing for Growth
The rise in Non-Performing Loans (NPLs) among Deposit-Taking (DT) SACCOs, as highlighted in the SASRA Annual Report 2023 points to critical issues in credit risk management that need urgent redress to reverse that upward trend.
One of these is the need to adopt proactive credit risk management practices that entail implementation of strategies and processes aimed at preventing and mitigating credit losses before they happen. These approaches focus on identifying potential risks early, monitoring loans more closely, and taking corrective actions before defaults escalate.
Some of the key challenges that contribute to default on loans include:
- Inadequate Credit Assessment Processes
- Limited Use of Credit Scoring Models
- Lack of Risk Mitigation Tools
- Poor Loan Monitoring and Follow-up
- Ineffective Recovery Processes
Metropol Credit Reference Bureau (CRB), a leading player in the provision of credit decision products and analytics would like to bring together professionals from DT SACCOs to a Breakfast Forum to discuss and share practical solutions to the above challenges as well as emerging industry highlights of note.
By addressing these challenges, Metropol seeks to support SACCOs to significantly improve their ability to identify and manage credit risk, reduce the incidence of NPLs, and ultimately ensure their financial stability and growth.
Objectives
- Knowledge Sharing: Bring together Key Decision Makers from DT SACCOs to share insights on emerging issues and propose solutions to challenges in the sector.
- Networking: Provide an opportunity for professionals to connect with each other and share experiences.
- Awareness on Credit Risk Management Solutions: Share Metropol’s capabilities in supporting financial institutions with various credit risk management tools.