Cyprus Mail
Business Cyprus

New bank digital tool will be able to predict likely bad debtors

By Lizzy Ioannidou

A new tool, which will be able to predict whether a borrower is likely to become a bad debtor or not, will be made available in the coming years to banks through the existing data information system ‘Artemis’, it was revealed on Friday.

According to the Cyprus News Agency, the CEO of the company that manages the Artemis system Achilleas Amvrosiou said that “depending on someone’s economic behavior in the past three years, this new Credit Scoring tool will be able to predict a borrower’s ability to repay for the next 12 months, making the bank’s job easier.”

Artemis began in 2009 with the voluntary participation of the banks, and with the arrival of the troika, the Central Bank required that the full range of banking data, as well as data regarding performing and non-performing loans was put on Artemis, while also making the participation of banks with the information system compulsory.

Amvrosiou added that this new tool would be built according to new instructions by the Central Bank which are expected to be issued in 2019 and it will then take about 18 months to build the system and make it available to the banks.

The system, which will contain information regarding clients’ economic activity and their personal data, will assign a grade for each borrower. “If this grade is low then there is a possibility that the borrower will become a bad debtor, while the opposite is the case if the grade is high,” Amvrosiou explained.

Banks operating in Cyprus are currently clients of the company which operates Artemis. He said the system has been embraced by the banks and customers.

The new tool for Artemis is in the works as long strides are being made on the road towards the new era of digital banking by the Bank of Cyprus and Hellenic Bank, a process that is being encouraged through the newly imposed charges on transactions made at the counter, while digital transactions are charged less or not at all

The new charges have aroused a wave of reaction, as the Cyprus Workers’ Confederation (SEK) on Friday expressed its opposition to the imposition of charges on citizens for cash withdrawals from their own bank accounts, while the Cyprus Consumers Association has said that this was unacceptable and that the costs will weigh heaviest on pensioners and people not familiar with technology.

 

 



Related posts

Police warning about fake emails

Annette Chrysostomou

Coronavirus: Charges for breaking curfew, not wearing masks

Annette Chrysostomou

Covid vaccine by Christmas? ‘It’s possible,’ regulator says

Reuters News Service

Have coronavirus vaccines killed the gold rally? Probably not, analysts say

Reuters News Service

BidX1 online property auction sees active bidding and solid sales, despite pandemic

Andrew Rosenbaum

No-deal Brexit means UK to see rising unemployment, higher inflation, slowing economy — OBR

Reuters News Service