Interview: Sheikha Maryam bint Khalifa Al Thani
What is Qatar doing to promote financial transparency and responsible lending practices?
SHEIKHA MARYAM BINT KHALIFA AL THANI: Credit reporting is a pivotal risk assessment tool that is gaining prominence in the country’s financial sector. To facilitate its wider adoption, the Qatar Credit Bureau has undertaken a phased expansion of its membership. The initial stage involved the inclusion of the financial sector, represented by banks, financial institutions and finance companies. Subsequently, the second stage expanded to credit providers, encompassing institutions offering loans or financial services across diverse sectors such as automotive, real estate and telecommunications. The third stage aims to include the insurance sector, while the fourth stage is set to encompass the services sector, with an emphasis on financial technology companies, including blockchain firms and buy-now-pay-later entities.
Partnerships extend beyond member companies to government entities. For example, the Qatar Credit Bureau collaborates with the Judiciary Supreme Council to exchange credit and judicial data, which enables comprehensive information gathering, promotes transparency and aligns legal databases with credit reports for more accurate assessments of creditworthiness. As the Qatar Credit Bureau broadens its membership, data sources and distribution channels, institutions are set to gain increased confidence and trust in credit reporting data. Consequently, different types of institutions are willing to access customer credit reports, which stimulates credit growth and mitigates financial risk.
In what ways has the digital transformation influenced credit reporting in Qatar?
SHEIKHA MARYAM: To advance the financial sector and align with technological integration across economic sectors, credit reporting has undergone a digital transformation to enhance user interaction, and facilitate easy and effective access to credit reports. Since its inception, the Qatar Credit Bureau has diversified its customer service channels and increasingly relied on websites and mobile applications, enabling us to give 95% of our customers access to their credit reports. This shift aims to build a credit system that adheres to international technology practices and standards. Efforts have also been made to educate primary market segments on leveraging good credit practices.
As products and distribution channels become more digitalised, it is necessary to ensure that sensitive information from individuals and corporations is protected. Consequently, there is a need for monitoring processes, securing digital transactions and maintaining a cybersecurity team that is vigilant against potential risks. In line with this, the credit bureau’s application services incorporate customer authentication features and secure electronic payment options.
How can synergies between financial entities be reinforced to ensure accurate credit information?
SHEIKHA MARYAM: Establishing a specific definition of small and medium-sized enterprises (SMEs) is an important goal of Qatar Development Bank, in collaboration with the Qatar Central Bank, and the Ministry of Commerce and Industry. Joint efforts aim to formulate precise credit reporting models for the SME segment. Such clarity fosters market confidence and also amplifies financing opportunities for smaller businesses. The SME definition should align with international standards and employ comparable thresholds to avoid disproportionately high minimum capital requirements.
Another significant challenge relates to data collection from companies or government entities, regardless of their size. As the Qatar Credit Bureau expands its database and includes more sectors, robust partnerships with public and private players become pivotal. These collaborations enable closer proximity to management, in turn facilitating the inclusion of more organisations in credit reporting and resulting in greater confidence in the overall value of the system.
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