New services for small- and medium-sized enterprises from regulatory sandbox

Photo: fizkes / Shutterstock / Fotodom

Banks will be able to assess the creditworthiness of potential borrowers with the use of information from fiscal data operators about entrepreneurs’ income, their settlement account transactions, their counterparties, etc. This mechanism of loan issuance to small- and medium-sized enterprises was tested in the Bank of Russia’s regulatory sandbox. The platform was created to assess and test innovative financial technologies the use of which require amendments to regulation.

The new service will allow small- and medium-sized enterprises to receive credit offers remotely. Banks will be able to assess borrowers’ creditworthiness without the obligatory use of its official statements but based on data on their revenues received from online cash desks and other information received with the customer’s consent. This will help speed up the decision-making process and reduce the time taken to issue a loan.

Also, banks will be able to monitor credit risk online based on the information they receive.

The service will help increase lending to small- and medium-sized enterprises and improve the quality of such loan portfolios.

Russia’s Ministry of Justice is currently registering the amendment to Bank of Russia Ordinance No. 590-P, dated 28 June 2017, that establishes the procedure for creating loan loss provisions for small and medium-sized enterprises whose credit risk can be assessed using banks’ internal methods, which do not require borrowers to provide their financial statements.

22 August 2019

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