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NRB signs MoU on Piloting Psychometric Scoring Solution with IFC  

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NRB signs MoU on Piloting Psychometric Scoring Solution with IFC  
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MoU signing ceremony on Tuesday. Photo Courtesy: NRB

February 2: Nepal Rastra Bank (NRB) has signed a memorandum of understanding (MoU) with the International Finance Corporation (IFC) on piloting psychometric scoring solution – a tool to assess potential borrowers on the basis of individual financial capital, collateral, capacity, conditions (terms of the loan) and character (personal credibility).    

The psychometric scoring system is expected to innovatively present loan flow to the fiscal system compatible with technology and would help make the system further tech-savvy and promote simple and risk-free credit flow, NRB said in a statement.    

Executive Director of the Department of Microfinance Institutions Supervision of the central bank, Suman Prasad Adhikari, and IFC’s Resident Representative for Nepal Babacar Sedikh Faye signed the MoU on behalf of their respective organisations on Tuesday (February 1).

The tool is also expected to help banks and financial institutions to develop credit risk profile based on data analysis of the credit character and psychological being of potential borrower and encourage service recipients to mainstream in formal financial services.    

According to the NRB, the tool is to be tested in the financial system of Nepal for two years in collaboration with the Government of Japan and the United Kingdom. This will also help bring the people receiving micro and small loan and micro, small and medium enterprises to the ambit of formal financial services.    

During the signing ceremony, NRB Governor Maha Prasad Adhikari thanked the IFC Resident Representative for providing NRB an opportunity for the new collaboration and said that the new MoU would make the microcredit management technology-friendly.    

 

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