Credit bureaus in Egypt: A closer look at I-Score - Decisimo
In Egypt, the credit bureau market is led by a single entity known as I-Score, or The Egyptian Credit Bureau. I-Score holds a central place in the credit system. It maintains credit data for individuals and small and medium-sized enterprises, or SMEs.
Establishment and Legal Framework
I-Score was established on August 3, 2005, after approval from the Capital Market Authority and the Central Bank of Egypt. It was set up under Companies Law No. 159 of 1981 and Capital Market Law No. 95 of 1992.
Scope and Range of Data
I-Score maintains a credit information database that covers both SMEs and consumers. The database gives the lending community a clear signal. It supports credit approvals and improves trust in decision logic.
Members and Subscribers
Based on the latest available data, I-Score had 913 banks, companies, and microfinance institutions subscribed to its services. That subscriber base shows its role in the Egyptian credit market.
The Unbanked Population
However, a large share of Egypt's population remains unbanked. Reports suggest that more than 50 million individuals were unbanked out of an estimated total population of around 110 million in 2021. That represents at least 67% of the Egyptian adult population.
A main reason cited for being unbanked is insufficient income. Almost 45% of unbanked individuals say they do not have enough money to hold a bank account.
Impact on the Credit Market
By providing broad coverage of credit data for individuals and SMEs, I-Score has supported financial inclusion and economic growth in Egypt. It has also helped ensure that the lending community has access to reliable credit information. That matters for assessing creditworthiness, managing credit risk, and supporting responsible lending practices.
Implications and Challenges
The high share of the unbanked population creates challenges for credit bureaus like I-Score. A large segment of the population lacks formal financial records. That makes it hard for them to be part of the formal credit system, and they are not represented in I-Score's database.
Alternative Data for Financial Inclusion
One way to address this challenge is the use of alternative data. Credit bureaus and financial institutions can use non-traditional data sources such as mobile phone usage, utility bill payments, and other forms of informal financial activity. That can help assess the creditworthiness of individuals without a formal banking history. It can also support greater financial inclusion and give the unbanked population better access to credit and other financial services.
Frequently asked questions
What is I-Score in Egypt?
I-Score, also called The Egyptian Credit Bureau, is Egypt’s central credit bureau. It maintains credit information on consumers and small and medium-sized enterprises, supporting lenders’ credit approvals and assessment of creditworthiness.
How many subscribers did I-Score have?
I-Score had 913 subscribers in the latest available data. They included banks, companies, and microfinance institutions. The figure describes the latest available data and is not stated as a current count.
How many people in Egypt were unbanked?
Reports estimated that more than 50 million people in Egypt were unbanked. People without formal financial records are not represented in I-Score’s database, making participation in the formal credit system difficult.
Why are many people in Egypt unbanked?
Insufficient income is a main reason people in Egypt are unbanked. Nearly half of unbanked individuals say they lack enough money to maintain a bank account, which can leave them outside the formal credit system.
Can alternative data help assess creditworthiness for people without a banking history?
Alternative data can help lenders assess creditworthiness for people without a formal banking history. Sources may include mobile phone usage, utility bill payments, and other informal financial activity, supporting access to credit and financial services.
