Over 1.2 million face challenge to apply for credit

Chamwe Kaira

More than 1.2 million individuals in Namibia are expected to face difficulties when seeking credit, according to TransUnion Namibia.

Lara Burger, the country manager for TransUnion Namibia, commended the country for its strides in financial inclusion, revealing that approximately 360 000 Namibians eligible for credit are visible to financial institutions through credit bureaus. Nevertheless, she emphasized that an additional 1.2 million people are likely to encounter obstacles when applying for credit.

These 1.2 million Namibian adults are poised to face challenges when attempting to access financial products or services that would enable their greater participation in the nation’s economy. Burger pointed out that Namibia is not unique in having a large portion of its population unrepresented in credit bureaus, as many regions globally have fewer than 10% of adults with a credit history.

Burger noted the ongoing economic challenges faced by consumers, many of whom may require access to microfinance or retail credit. These types of credit products have the potential to enhance individuals’ lifestyles, support further education, or provide the capital necessary for entrepreneurial endeavors. Assessing a borrower’s credit profile allows financial service providers to gain valuable insights into the individual’s past payment behavior and credit utilisation, which in turn serves as a robust indicator of their ability to meet future payment obligations.

The inclusion of alternative data into an expanding database, alongside traditional lender credit bureau data, enables even unbanked or underbanked Namibian consumers and businesses to establish a credit history. By introducing new insights into consumers’ credit profiles, a larger segment of the population can participate in the formal financial system, granting them access to essential financial services for improving their lifestyles, fostering business growth, and contributing to the advancement of the Namibian economy.

Related Posts