SINGAPORE : Singapore is getting a second credit bureau, which will be set up by credit and business data provider DP Information next January.

The new bureau will provide banks with information about individuals' credit history.

DP was given the go-ahead earlier this week to set up the new credit bureau - putting it head-to-head with incumbent Credit Bureau Singapore.

The credit and business data provider believes that having another player will add vibrancy to the market.

Chen Yew Nah, Managing Director, DP Information, said, " With two credit bureaus, we will be able to provide new products, greater innovation, and competitiveness will step in and allow standards to be kept high.

"Our strength is very much that we have been in this information space for over 30 years. We understand the credit space very well, not only from the individual's standpoint. We have a lot of understanding about sole proprietors, businessmen, how they need credit and how they need finances."

DP said it is already in advanced stages of discussions with seven banks - including UOB, OCBC, ABN-Amro and the Bank of China.

It expects them to sign up with the new bureau once it starts operating next January.

DP is hoping to sharpen its competitive edge - by packaging additional data, such as information on an individual's business.

Ms Chew said, "There will be a lot of ease, and flexibility and integration. DP having had other sources of data and information, and as a matter of fact we have a non-bank credit bureau, we see that there will be a lot of opportunities to allow some of these data to be shared with the banks.

"We definitely see that there will be new products created, and going forward, there will be even better alert systems and data analytics as part of the total product offering."

DP said its credit bureau would also provide free credit reports to consumers for a limited time period. - CNA/ms