M/s GnuGrid CRB Limited commenced operations as fully licensed Credit Reference Bureau (CRB) by Bank of Uganda with effect from November 25, 2021.
Bank of Uganda says they granted a licence to GnuGrid CRB after it fulfilled all the requirements
“Pursuant to Section 78 of the Financial Institutions Act 2004, (as amended 2016) and Part II of the Financial Institutions (Credit Reference Bureau) Regulations 2005, Bank of Uganda, following satisfactory fulfilment of pre-licensing requirements issued a license to GnuGrid CRB Limited to operate as a Credit Reference Bureau in Uganda,” BoU said in a statement issued on December 30.
“The Bank of Uganda assures the public that it will continue to safeguard the stability and integrity of the financial sector,” they added.
The Credit Reference System is a system through which information on borrowers’ credit history and activities is collected and processed. This information is accessible to Bank of Uganda regulated institutions and the borrowers.
GnuGrid CRB was launched in 2019 by David Opio and James Dailey, and built Solar Sentra, which aimed to streamline and automate the highly fragmented solar industry in Uganda and beyond by using AI-optimised sensors to monitor solar systems and collect data on power usage which is used by solar companies to tailor service delivery.
The company has now diversified to become a licensed credit reference bureau to help financial institutions de-risk their investment and build reputational collateral for the last-mile credit consumers or borrowers.
“gnuGrid has the system necessary to onboard the millions of unbanked/tier four consumers in Uganda – all of Africa, actually,” Opio says.
“It is the first-ever local credit reference bureau licensed by the Bank of Uganda to provide credit reference services to enable lenders to know how borrowers repay their loans,” he adds.
In 2021, the startup raised $612,500 in funding.