Bureau Development in Africa Presented by Gillian McMeekin XDS General Manager

This presentation remains the property of XDS (PTY) Ltd and may not be altered, copied or distributed without written permission Who is XDS? (Strengths & Experience)  100% Black owned Credit Bureau in SA  Self driven, motivated and highly skilled people with many years of credit bureau experience  Data – integrity, accuracy and comprehensiveness  Effective use of advanced technology  Innovation and Flexibility  Joint Venture Partnership with KPMG  XDS Credit Bureau projects: UK, USA, Spain, Holland, Italy, Middle East, Uganda, Kenya, Tanzania, Ghana, Nigeria, Australia, South Africa.

This presentation remains the property of XDS (PTY) Ltd and may not be altered, copied or distributed without written permission Highlevel African Challenges:  Existing Environment  (Economic and political factors, education and literacy)  Infrastructure- access to information, systems and technology  Consumer Consent  Legislation – Data Privacy Laws and Frameworks for data sharing  Emerging Market data – quality and history, matching techniques, no identity numbers

This presentation remains the property of XDS (PTY) Ltd and may not be altered, copied or distributed without written permission Data Issues Prominent Problems :-  Unstructured and informal addresses  Swapping of first name and surname  Matching of consumers using data other than identity numbers, such as driver’s licenses, voter registration, date of birth, first name, surname and addresses.  Consumers with identical, similar names living in the same residential areas.  Lack of historical credit data  Allowing for business and consumer searches  Initial and on going Collection of manual public domain records such as judgements.  Scrubbing, validating and ensuring integrity of data received by the subscribers

This presentation remains the property of XDS (PTY) Ltd and may not be altered, copied or distributed without written permission XDS Ghana Experience Challenges:  Cash Based Society  Data Sharing  Legislation  Infrastructure

This presentation remains the property of XDS (PTY) Ltd and may not be altered, copied or distributed without written permission XDS Ghana Bureau Development  XDS entered market in 2003  Education lobbying and speaking to the right people!  The Ghana Association of Bankers (GAB) mandated XDSData to provide credit bureau services to all the banks in Ghana. XDSData then proceeded with all the banks in Ghana, collecting data Key focus Areas:  Signing of contractual agreements for data sharing  Simultaneous establishment of a Data Sharing association  Banks currently providing XDS with all sorts of data  XDS responsibilities: Data collection, hosting, effective security and confidentiality, right technology platforms, collection of public record information (bankruptcies, foreclosures, tax liens, and court judgments.)  No Identity System therefore matching crucial, drivers licenses, addresses, etc

This presentation remains the property of XDS (PTY) Ltd and may not be altered, copied or distributed without written permission GHANA Legislative Environment  Ghana Credit Bureau Bill Framework for the licensing, operation and the supervision of credit bureaus in Ghana, to establish the conditions for the formation, processing, storage and disclosure of credit information, and to provide for related matters.  Bank of Ghana - Supervisory/ regulatory role/ Licensing/Inspections and Audits  Credit Bureau vs Debt Collection agency  Banking Association/Data Submission  Data : “Person” – natural person, artificial person but excludes the Government of Ghana

This presentation remains the property of XDS (PTY) Ltd and may not be altered, copied or distributed without written permission Ghana Today  Financial Sector Reforms  Includes: The Foreign Exchange Bills and Cheque Bill, which will be tabled before Parliament in the course of the year.  The Ministry of Finance in addition pursue the passage of regulatory laws such as Credit Bureau Law, Non-Bank Financial Institutions Law and Money Laundering/CFT Law to strengthen Payment Systems.  Credit Bureau Bill prediction – will be passed by end of 2006

This presentation remains the property of XDS (PTY) Ltd and may not be altered, copied or distributed without written permission XDS in Nigeria Nigerian Environment:  No identity system  No viable data sharing mechanisms  One or two data companies but no viable and fully fledged credit bureau  No data privacy legislation or frameworks in place for data sharing  To date : first reading of credit bureau bill taken place

This presentation remains the property of XDS (PTY) Ltd and may not be altered, copied or distributed without written permission Roadmap to Establish an effective Credit Environment in Nigeria Roadmap to Facilitate an effective Credit EnvironmentParticipantsActions 1. Establish a Credit Bureau AssociationRelvant Key StakeholdersRegulatory Framework to govern credit bureaus 2. Establish a Data Sharing AssociationCRIMA + otherRegulatory Framework for Data Sharing Establish Code of Conduct 3. Create committee/ working groupCredit GrantorsCreate Legislative framework Lobby with governmentBureauxfor bureaux to operate bureau to operateGovernment other stakeholders 4. Negative Data SharingCCASharing of Default and Fraud BureauxData Positive Data Sharing

This presentation remains the property of XDS (PTY) Ltd and may not be altered, copied or distributed without written permission In Closing Work with Key stakeholders – Banking associations, other stakeholders parliament and government Play an instrumental role in lobbying for a effective legislative environment Understand the consumer landscape (including partnering with local citizens) Understanding information constraints Understanding Infrastructure constraints Provide all the necessary skills and experience From the beginning look at matching techniques and alternative data sources within the country Persevere, persevere, persevere and prepare for the long haul

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