4 March 2014

Africa: Bank of Africa Deploys Credit Risk Management Solution to Curb Loan Defaults

Bank of Africa has deployed Credit Quest by Swiss based banking IT consulting firm SOFGEN in all its branches in Kenya, Uganda and Tanzania as the institution tries to mitigate losses steming from defaulted loans.

CreditQuest will enable Bank of Africa have a clear oversight of their customers activities enforce credit appraisal rules and processes and to improve credit application turnaround time and monitoring.

The software will also reduce BOA's reliance on paperwork by eliminating manual interventions during its credit process.

BOA says its upgrade is informed on the rising cases of loan defaults with the Central Bank of Kenya (CBK) Annual Report stating that non-performing loans increased over the last one year by 34.4 percent in June whilethe ratio of gross NPLs to gross loans jumped from 4.5 percent to 5.3 percent attributable to the high interest rates and reduced economic activities during the period.

BOA's managing director Kwame Ahadzi says CreditQuest will thus cover its entire product portfolio. "We evaluated different options and determined that CreditQuest best meets our requirements. CreditQuest offers modules covering our entire portfolio of corporate, SME and retail lending processes. SOFGEN did an excellent job implementing CreditQuest at the bank and integrating it with our core system," said Ahadzi.

Following the deployment by BOA this brings to total 10 banks that have installed the software in sub-Sahara Africa and over 200 banks across the world.

"Bank of Africa subsidiaries in East Africa are strategic accounts for SOFGEN as we continue our match towards becoming the preferred provider of IT solutions to banks in Africa. We intend to deepen our relationship with Bank of Africa to assure that the benefits of the bank's investment in CreditQuest are realized."SOFGEN Africa CEO Tunde Oladele said.

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