The country’s credit registry announced it is keeping inquiry fee affordable amid the pandemic to allow more financial institutions accessing its database.
State-run Credit Information Corp. (CIC) said in a statement that it would be maintaining its introductory price per credit report inquiry at P10—from P55 earlier—until end-December this year. The lesser fee secured backing by the Securities of Exchange and Commission last month.
CIC President and CEO Jaime Casto Jose P. Garchitorena said lowering the inquiry fee could boost the appreciation on shared credit database for major banks, credit-card companies and nonbank and smaller financial institutions.
“Large financial institutions that were previously hesitant to access CIC Credit Reports—as the newest source of basic credit data—are now actively completing their technical and legal requirements to become an accessing entity,” Garchitorena was quoted in the statement as saying. “One potential accessing entity even declared that it is budgeting to access 1 million CIC Credit Reports this year alone.”
He said he observed an increase in the number of financial institutions applying as accessing entities, thanks to the firm’s growing database supported by reports from Social Security System and Government Service Insurance System, among others.
The CIC said that database could be helpful to financial institutions in navigating the borrowing and lending landscape, especially now that more challenges are seen to come amid the pandemic.
With cheaper access, Garchitorena said that users will be given more data to review loan applications.
Among CIC’s accessing entities as of March are rural banks, financing and lending corporations, loan associations, cooperatives and thrift banks. The credit registry has 73 million contract data coming from 483 financial institutions and 11 million unique individuals and 83,000 proprietors in its database.
“The CIC database is a new and unique government resource to assist lenders and borrowers to manage their credit risks. We encourage all our submitting financial institutions to get onboard as an accessing entity and take advantage of its benefits,” Garchitorena added.
The CIC earlier alerted the public of collection scam and individuals falsely claiming to be credit registry employees with the intent of harassing borrowers to pay their account despite the lockdown.
The corporation said it was already working with law enforcement and other government agencies in addressing the matter.
Source: BusinessMirror