The Credit Information Corporation (CIC)—the Philippines’ sole public credit registry and repository of credit information—presented its credit database as the largest and most diverse during the 62nd Charter Anniversary Symposium of the Rural Bankers Association of the Philippines (RBAP) held on 07 November at the Manila Hotel.
CIC Senior Vice President (SVP) for Business Development and Communications Atty. Aileen L. Amor-Bautista shared to the 427 rural bankers in attendance how the CIC has the most competitive credit database in the country.
Out of the 1,724 registered submitting entities to the Credit Information System (CIS)— universal, commercial banks, credit card issuers, thrift banks, rural banks, cooperatives, government and private lending institutions, insurance companies, and financing and lending institutions—444 are already in production, submitting live or actual basic credit data of their borrowers.
“This year, the quality and quantity of CIC data significantly improved, making it the largest credit database in the Philippines to date, with the most diverse set of contributors. So much so that our two credit bureaus, CIBI and CRIF, are finding usability of these data. We feel that this depth and diversity makes the CIC data more relevant in promoting inclusive, riskbased lending,” CIC PCEO Jaime Casto Jose P. Garchitorena said in a separate statement.
More than a credit cards database As of 04 November 2019, the CIC database contains 9,153,536 unique data subjects and 80,278 companies/corporations.
Out of the 53,310,925 contract data in its repository, installment transactions are the most dominant with 34,115,937 contracts, followed by credit card transactions with only 18,580,406. There are 614,582 non-installment contracts.
“The ratio of credit card to installment contract data is significant as the latter reveals behaviors that are more typical to the market of rural bankers,” Atty. Amor-Bautista explained.
She further expounded on how salary loans, housing loans, car loans, and other more typical credit transactions offer CIC data users a better view of true credit behaviors versus a predominantly credit cards database. Competitiveness beyond compliance The SVP also tackled how the CIC’s data set is beneficial for the rural banking sector which comprises 33% (148) of its submitting entities in production, as it is in line with the credit registry’s mandate of improving access to credit for micro, small, and medium enterprises (MSMEs). While the CIC looks forward to the rural banks’ 100 percent compliance to the Credit Information System Act (CISA), it also urged them to be more competitive by going beyond compliance and accessing the CIC database to expand the rural banks’ lending portfolios and reduce portfolio risk.
“Access to CIC data is not mandatory, but this is a valuable tool for your members. Access could be made directly from the CIC or through the accredited credit bureaus, namely CRIF and CIBI who are currently the only two active bureaus accessing the CIC database,” Garchitorena added.
Two other credit bureaus—TransUnion and Compuscan—are in the process of completing some CIC requirements. They will be allowed to access the CIC data once these have been resolved.
The rural bankers were also apprised of CIC’s two (2) types of inquiries: new application enquiry (NAE) and monitoring enquiry (ME). NAE is used to inquire about an applicant borrower who has no existing loan transactions with the potential lender, while ME could be used to monitor existing loan accounts of borrowers submitted by the lender to the CIC. “We reiterate our commitment to the noble cause of the rural bankers to give access to credit in the rural areas where other lenders may find reluctance to lend. Please let us know how we can be of service to your members,” Garchitorena also said.
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The Credit Information Corporation (CIC), a government-owned and-controlled corporation was created by Republic Act No. 9510, otherwise known as the Credit Information System Act (CISA). The primary mandate of CIC is to establish a comprehensive and centralized credit information system for the collection and dissemination of fair and accurate information relevant to, or arising from, credit and credit-related activities of all entities participating in the ecosystem.
Source: Credit Information Corporation (CIC)