Republic of the Philippines
100 financial entities will be able to join the pilot phase of the country’s national credit information system next month, below the Credit Information Corp.’s (CIC) 170 to 200 anticipated submitting institutions, due to delays in the submission of documentary requirements of some corporates.
The CIC said only 100 financial institutions have met the March 31 deadline for credit data submission to the nationwide database, with the launch of its pilot phase to be held on May 8.
“So right now we have 100 [financial entities], which is not bad. We have more than that who are ready for production na pwede na sana sila magbigay (that could have submitted their data), if not for the documentary requirements,” CIC President and Chief Executive Officer Jaime P. Garchitorena told BusinessWorld in a recent interview.
Broken down, these financial entities include 44 firms out of the 117 companies that were expected to submit their loan data by end-March, on top of the current 56 firms that are currently in production -- or those already submitting their credit data to the CIC on a regular basis.
Republic Act No. 9510 or the Credit Information System Act mandates the establishment of a comprehensive and centralized credit information system, with CIC tasked to consolidate the data.
“Right now it’s at 100, and not that they’re not in production or not that they’re not ready to submit, but there are certain documentary requirements that the CIC requires prior to entering the production phase and these are related to securing the commitment of the organization to adhere to the highest standards of data privacy, how to handle the data and data security. So that takes a bit of a longer time to get from the financial institution and we cannot get them into production unless we have those assurances,” Mr. Garchitorena explained.
According to Mr. Garchitorena, the 73 financial entities who were unable to submit their credit data last March 31 due to failure to comply with certain documentary requirements will be given a chance to submit their data before the soft launch of the database’s pilot phase.
“We’re encouraging them to try to speed up the process, try to get onboard with their first data submission before April 28,” he said.
“And so if they get the documents on board and they have their data [that they have generated, and they are only waiting for a] go signal, [if they will be able to enter] before April 28, we’ll consider them for pilot,” Mr. Garchitorena added. He said the CIC already sent notices to the remaining firms that have yet to submit their loan data to the centralized credit information system.
The country’s centralized credit information system is expected to go live by January 2018 following a nine-month testing phase.
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