Credit Information Corporation (CIC), the country’s sole public credit registry and repository of credit information, teams up with its accredited credit bureaus namely, CIBI Information Inc., CRIF Philippines, and Transunion Information Solutions, Inc. to strengthen data-driven and risk-based lending in the Philippines amid the ongoing COVID-19 pandemic.

Also known as Special Accessing Entities (SAEs), these credit bureaus are duly accredited private corporations engaged primarily in the business of providing credit reports, ratings, and other similar credit information products and services, and are entitled access to the CIC’s pool of consolidated basic credit data subject to security requirements.

CIC President and CEO Atty. Ben Joshua A. Baltazar expressed optimism on how this collaboration can immensely aid the agency in imparting among financial institutions the importance of having access to reliable and accurate credit data during this unprecedented crisis.

“The alliance between the CIC and its SAEs puts it in a unique position to aid the financial system during this crisis by mapping lending trends, managing risks, and gauging the health of the banking and lending system as the mandatory and comprehensive reporting to the CIC provides a full picture of the local credit eco-system,” he explained.

Webinars on access to reliable credit data

For the second half of the year, CIBI Information, Inc., in partnership with the state-run credit registry, will conduct a three-leg webinar series entitled, #CIBITalks: How can financial institutions use CIBI accreditation assistance program in accessing CIC data, which aims to guide financial institutions in the process of submission and compliance with the Credit Information System Act (CISA) and thereafter, in becoming an accessing entity of the CIC.

“Our target participants are financial institutions that are yet to onboard the Credit Information System. We want them to see, through our series of marketing campaigns and webinars, how the CIBI can assist them in gaining access to reliable, comprehensive credit data which can help them in their credit-decisioning activities,” CIBI President and CEO Marlo Cruz shared.

The CIC is currently in talks with CRIF Philippines, Inc. and Transunion Information Solutions, Inc. for their lineup of similar activities for the benefit of both the financial institutions as lenders and the general public as borrowers.

The CIC head is certain that the series of extensive campaigns with the accredited credit bureaus will help in mitigating the negative economic impact of the pandemic by helping lenders manage their portfolio of bad loans while encouraging new loan creation for creditworthy borrowers: “Access to credit history will prevent financial institutions from lending to those with high default risks, and at the same time reward those with good credit standing, hence removing information asymmetry and promoting fair pricing of loans.”

The accredited credit bureaus also offer value-added services to lenders such as credit scoring and portfolio monitoring.

“The CIC has implemented much needed improvements to its existing services to ensure that the credit data it holds will serve its purpose—to boost risk-based lending in the Philippines and accelerate the country’s pandemic recovery efforts,” PCEO Baltazar ended.