- Paves way for digital e-KYC and broader credit access
- A significant immediate benefit of this data aggregation will be rollout of a comprehensive e-KYC system
- Transition will allow Sri Lankan financial institutions stand to significantly reduce operational costs while accurately pricing risk
The Credit Information Bureau of Sri Lanka (CRIB) is steering towards a major transformation in its data ecosystem, finalising plans to integrate telecommunications data by the end of this year, followed by utility payments next year.
Moving away from a purely traditional banking data model, the national data repository aims to leverage everyday transactional behaviour to build credit profiles for a vast segment of the population currently excluded from the formal financial sector.
The strategic shift will replace the outdated, conventional underwriting methods that heavily rely on manual assessments with a dynamic system that treats alternative data as the new collateral.
The integration of the telco data is slated for completion in the fourth quarter of this year, with an official launch targeted for December or January. Speaking to Mirror Business, CRIB Executive Director and General Manager Pushpika Jayasundara revealed that the technical groundwork is advancing and will soon require a final gazette notification from the subject minister.
“We are on the second quarter now; by the end of the third quarter, we are trying to basically commence the process,” Jayasundara explained.
“So, before the end of the year, we will basically have the entire process ready to see that all the telco data will be uploaded.”
He added that parallel discussions with the utility providers are already underway, with the integration of the electricity and water board data expected to follow in the coming year.
A significant immediate benefit of this data aggregation will be the rollout of a comprehensive electronic Know Your Customer (e-KYC) system. Currently, identity verification for financial services often requires cumbersome manual processes such as obtaining physical certifications from a Grama Niladhari. The new digital framework aims to eliminate these hurdles entirely by cross-referencing multiple national databases in real-time.
“Once it is given, we basically verify with different databases,” Jayasundara noted.
“We have the bank database; we have the secure transaction registry also with us now—all movable assets electronically registered with us. We have the insurance; we have now telcos. Then we will be getting utilities also. So, all will be cross-checked and give a one verified ID.”
He highlighted that updating the legal framework for the secure transaction registry alone required 17 amendments, clearing the path for this level of digital integration.
This strategic integration is primarily targeted at empowering ‘thin file’ customers—individuals who lack sufficient formal credit data to be accurately assessed by the financial institutions. By incorporating alternative metrics such as mobile phone bill payments or monthly utility settlements, the CRIB aims to provide a reliable proxy for financial discipline. This allows the banks and insurance providers to make informed, data-driven decisions rather than outright rejecting applicants who lack conventional credit histories.
The impact of this data-driven underwriting approach is expected to be highly transformative for the local financial sector, mirroring successful models in mature international markets. In economies like the United Kingdom and United States, centralised alternative data is heavily utilised to optimise pricing, automate risk assessment and flag potential fraud.
Credit Info International representative Joe Bowman noted that a robust, multi-faceted data profile directly correlates with financial performance, as the consumers with low-risk bureau scores consistently present lower loss ratios for institutions.
By transitioning to this automated, data-rich environment, Sri Lankan financial institutions stand to significantly reduce operational costs while accurately pricing risk, ultimately rewarding disciplined customers with better access to credit and more competitive rates.
Source: dailymirror.lk
