Visa has entered into a strategic partnership with Tarabut to roll out a suite of services for banks operating across KSA and Bahrain.
Through this collaboration, Visa and Tarabut seek to address current gaps present in the market, including limited visibility into a customer’s complete financial situation, especially when income, savings, and transaction data are divided across multiple institutions. With Open Banking improving this landscape by allowing secure access to financial data, banks can leverage real-time income insights, asset information, and transaction behaviour to develop a complete and accurate understanding of a customer’s creditworthiness.
Expanding credit access across KSA and Bahrain
By utilising Tarabut’s connectivity across Saudi and Bahraini banks and Visa’s global expertise in credit advancement, the two companies seek to bridge the data gap that limits consumer credit growth. Additionally, merging Tarabut’s data insights products, which enable banks to access a customer’s financial data across multiple institutions, with Visa’s data solutions and advisory services is set to allow banks to make more informed credit decisions.
The bundled solution provided by Visa and Tarabut is set to deliver:
- Access to total income identification and verification for salaried and non-salaried persons through Tarabut’s Open Banking technology, built on regulatory-licensed infrastructure and API connectivity across the Saudi banking landscape;
- Improved customer segmentation and risk modelling through Visa’s data analytics;
- Strategic advisory support to assist banks in optimising their credit issuance and underwriting strategies, augmenting their policies and expanding their portfolios sustainably.
Furthermore, by launching this new bundle, Visa and Tarabut intend to equip banks with the tools to assess creditworthiness more holistically, allowing them to provide credit to more customers, minimise default risk through better-informed underwriting, and simplify the onboarding and approval process with real-time financial insights.
By doing so, the two companies seek to help financial institutions offer their services to formerly underserved or overlooked segments, especially young, digitally-native consumers with thin credit files. Over the upcoming months, Visa and Tarabut plan to launch additional service bundles developed to support banks in accelerating their digital transformation journey and better serving their customers.
