Success Stories
Ukraine

Ukrianian Banks Reach a New Milestone

On June 9th 2006 , after months of negotiations as well as continued technical assistance from ATCI, the First National Bureau of Credit Histories announced that Creditinfo had won the credit bureau tender by out competing offers from Dun & Bradstreet and TransUnion.

The FNBCH and Creditinfo have agreed to work together: Creditinfo will take a 9% share of FNBCH and will be its operator. The announcement is a breakthrough in harmonizing what would have been a highly fragmented database - setting the stage for the credit bureaus to become successful. Without a common platform, it is unlikely that any credit bureau in Ukraine could survive.

In November 2005, ATCI finalized a credit bureau Business Plan – a document that elicited virtually no commentary from the banking sector because of its thoroughness. The business plan unambiguously outlined the steps needed to develop a credit bureau in Ukraine . It also outlined what obstacles needed to be removed. Besides the total absence of a regulatory framework in Ukraine , which ATCI is in train to complete, the business plan noted the importance of resolving credit bureau shareholder issues, minimizing data fragmentation and the continuing absence of a credible international credit bureau operator. Resolution of these issues was a sine qua non for moving forward.

Furthermore, before last week’s agreement, any discussion of a possible “merger” or cooperation between Creditinfo and the FNBCH was purely speculative. That is no longer the case. While Creditinfo is still in the process of establishing its own independent credit bureau with the Association of Credit Unions and the TAC financial group, FNBCH and Creditinfo are now partners. This partnership represents a major step towards full integration. The FNBCH is allied with most of the members of the AUB and intends, with Creditinfo as its operator, to develop a credit bureau with data provided by its existing members. Creditinfo and FNBCH’s collaboration makes it possible to use the same system and simplifies prospective data sharing.

FNBCH and Creditinfo are also looking for ways to link up and form a single, and possibly legally unified, database that goes beyond a relationship based on a data exchange of commercial contacts. Last week’s events have cleared the way for the development of a world-class private credit bureau system in Ukraine .

Ukraine ’s new credit bureaus will help expand and empower the middle class with greater mobility and greater opportunity. In numerous markets around the world, a credit bureau is as primary tool to expand the use of credit for home ownership, SME development and job creation Credit bureaus also reduce bank losses, insurance and credit card fraud and collection costs - instilling confidence in the overall banking and economic system.

ATCI looks forward to working with all stakeholders in developing such a credit bureau system in Ukraine .

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