The Credit Information Corporation (CIC), the country’s public credit registry and repository of credit information, directs digital banks accredited by the Bangko Sentral ng Pilipinas (BSP) to register as a Submitting Entity (SE) to the CIC, pursuant to Republic Act No. 9510 or the Credit Information System Act (CISA).

SE refers to any entity that provides credit facilities such as, but not limited to, banks, quasi-banks, trust entities, investment houses, financing companies, cooperatives, non-governmental, micro-financing organizations, credit card companies, insurance companies, government lending institutions.

“The registration of digital banks as SEs is a valuable addition to the CIC database, especially as digital banks have the potential of penetrating the unbanked sectors. Being a key driver of the country’s digital transformation, their participation in the Credit Information System can serve as a catalyst for broad-based financial inclusion and improved access to credit ,” CIC President and CEO Ben Joshua Baltazar said.

Aid in the financial recovery of the MSME sector

Compliance among digital banks should also support the offering of cost-effective financial products tailored to the needs of the micro, small and medium enterprise (MSME) sector that make up 99.6 percent of firms. Through the CIC Credit Report, businesses can make use of their good payment behavior as proof of creditworthiness to have access to a wider-array of formal financial services.

Value of diverse and comprehensive credit data

PCEO Baltazar emphasized that its database continues to grow, through the improving compliance of its covered entities, the CIC also continues to maintain an effective data quality improvement process, robust credit reporting system, and resilient cyber-security posture.

As of date, the CIC database contains the credit data of 33.1 million unique individuals, which is approximately 49 percent of the country’s adult population.

From 2020 to 2021, almost a million credit reports were pulled by CIC’s accessing entities for their credit risk management and credit decisioning.

“The CIC database, being the single largest, most diverse, and comprehensive credit database in the country continues to prove that its credit data remains to be the most cost-effective way for lenders to properly assess their borrowers’ creditworthiness,” PCEO Baltazar said.

“With the appeal and accessibility of financial services offered by digital banks for MSMEs, the CIC hopes that digital banks promptly comply so that MSMEs with low or no recorded credit data can build and improve their creditworthiness,” PCEO Baltazar added.

The CIC released Letter Circular No. 2022-05, series of 2022 on 11 April 2022, notifying digital banks of their inclusion under the coverage of CISA, and informing them to commence registration as an SE within ten calendar days from the issuance of the BSP Circular Letter granting the same of its Certificate of Authority to Operate as such.

BSP Circular No. 1105, series of 2020 defines a digital bank as, “[that which] offers financial products and services that are processed end-to-end through a digital platform or electronic channels with no physical branch, sub-branch, or branch-lite unit offering financial products and services.”

Currently, there are only six digital banks that secured licenses from the BSP, namely, Overseas Filipino (OF) Bank of the Land Bank of the Philippines, Tonik Bank, UnoBank, UnionDigital Bank, Maya Bank, and GoTyme.

Said circular may be accessed through the CIC website:

For digital banks and other financial institutions interested in becoming an SE, they may send an email to [email protected] and follow the official Facebook page of CIC for further issuances and updates.