FICO has announced the launch of its highly predictive FICO® Score for International Markets in the Philippines.
The solution improves the appraisal of a borrower’s creditworthiness by intelligently interpreting financial data that may only cover a single credit line or a small consumer segment. The score is produced by applying this data to FICO’s tried-and-tested expert model to produce a richer picture of credit risk through analytic interpolation.
In the Philippines, the initial data will come from CIBI, the country’s first and only local credit bureau and its member cooperative banks.Consumer CreditScore (CCS), FICO’s local scoring service partner is managing the rollout of the FICO® Score for International Markets in the Philippines.
“The score is available immediately and will enter commercial trials with banks for the next month, with plans to issue scores for loan applications from December,” said Clive Knott director at CCS. “There has been strong interest from Philippine lenders because the FICO Score is used in more than 25 countries across the world and has a strong brand and reputation when it comes to risk assessment.”
Further to today’s announcement, the promotion of a national credit information exchange by the government-owned Credit Information Corporation (CIC) will see further adoption of the FICO Score.
“FICO will be ready from day one to incorporate this collective credit information into the score when it is made available,” explained Jennings. “Our partner CIBI is one of the bureaus recently approved to access the data. When the increased pool of consumer files comes online, it will improve the hit rate of our score. This broadens the number of consumers we can then accurately assess.”
CCS is also working with FICO on the development of a second score in the first half of 2017 using alternative data to address consumers with no credit history.
The announcement of these scores in the Philippines comes just a week after FICO declared it was invested in a comprehensive effort to increase access to affordable credit worldwide. The FICO Financial Inclusion Initiative involves a combination of business partnerships, innovative new products, mobile platforms and cloud-based services to help credit grantors make affordable credit accessible to some 3+ billion people worldwide.
Source: FICO Press Release