CRIF, Together with the Fintech Alliance, Promotes Responsible Online Lending in the Philippines
On September 17 in Manila, Krizelle Lazatin – CRIF Sales Manager – took part in a joint press conference with the National Privacy Commission (NPC), officials of the Securities and Exchange Commission (SEC), Bangko Sentral ng Pilipinas (BSP), and the Fintech Alliance. During the event, the NPC approved the Fintech Alliance initiative to formalize a code of ethics and conduct for responsible online lending. This measure will proactively tackle the issue of public shaming by some online lenders of their delinquent borrowers in the Philippines.
The main concern relates to the invasive use of Android app packages (APKs) installed by online lenders on their apps that allow them to access users’ personal data. By accessing the data and photos on the phones of delinquent borrowers, lenders publicly shame these individuals to pressure them to pay back their loans. The initiative, promoted by the Fintech Alliance, is a further step towards the adoption of responsible procedures in online lending. Through its membership of the Fintech Alliance, CRIF supports the initiative and helps educate consumers on credit management.
Moreover, CRIF attends Fintech Alliance events to show how consumers can access their credit reports through the Credit Information Corporation. CRIF also offers lender members the opportunity to improve their scoring platforms and models, based on best practices. In this way, financial institutions can also manage risk better while catering for the unbanked or underserved market they target.
The FinTech Alliance comprises over a third of registered Fintech companies in the Philippines, cornering over 85 percent of the Fintech-initiative transaction volume in the country today. Members include industry gamechangers such as Grab Philippines, PayMaya, Smart, Home Credit, Cashalo, and CIMB Digital Bank, among others.
Source: CRIF News