STATE-RUN Credit Information Corp. (CIC) has reported an increase in registered financial institutions and those regularly submitting credit data for its credit information database.
CIC reported that as of Sept. 20, there were 1,715 registered entities, with 444 of them already submitting basic credit data of borrowers regularly to its credit information system.
These include banks, cooperatives, government-owned and -controlled corporations, private lending institutions, insurance companies, and financing and lending institutions.
“This is another milestone for the country’s central credit registry because in less than two years after our system went live in 2017, we have already covered all sectors in the CIS ecosystem, as cited in Republic Act (RA) No. 9510,” CIC President and CEO Jaime Casto Jose P. Garchitorena was quoted as saying in a statement.
“This is a first in the Philippines — having a comprehensive and encompassing database that can serve as a tool in improving access to credit and achieving financial inclusion,” he said.
Last June, CIC reported that there were 1,600 financial institutions registered with the country’s sole public credit registry, with 396 regularly submitting data.
In the Circular letter No. 2019-01 dated Sept. 27, CIC published the list of the 444 financial institutions that started submitting live or actual basic credit data of borrowers to the database.
Included in the list are the credit card arms of large banks such as BDO Unibank, Inc., Bank of the Philippine Islands, Metropolitan Bank & Trust Co., Rizal Commercial Banking Corp., Security Bank Corp., Philippine National Bank, and UnionBank of the Philippines, Inc., among others.
CIC added that rural banks, financing companies, as well as the Government Service Insurance System (GSIS) are already onboard.
Those institutions not in the list are still in the registration, testing and validation phases.
In an interview in June, Mr. Garchitorena said CIC is targeting to increase its data subjects for the database to nine million from the current seven million this year.
In the next 12 to 18 months, he said they are eyeing to have the state-run pension fund Social Security System bring in data of the 15 million members who availed their loans, while the GSIS already committed to submit the credit information of its two million members.
RA 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.
The law also states that submitting entities, which are lenders, are required to submit and provide all the credit data of their borrowers to CIC.
“We will help these entities every step of the way to expedite the process of onboarding them,” Mr. Garcitorena added.
Source: BusinessWorld