MAKATI CITY - Aeon Credit Service (Philippines), Inc. (Aeon Philippines) has been recognized by CIC for providing loan facilities for the purchase of consumer products without the use of a credit card at the CIC's office.
Importance of Non-banking Lending Institution
During the recognition, CIC President and CEO Jaime Garchitorena stressed the importance of non-bank lending institutions in promoting inclusive growth in the Philippines.
A subsidiary of Aeon Financial Service Co., Ltd. Japan, Aeon Philippines is the latest prime mover in CIC's ever-growing list of companies that have expressed full support on CIC's thrust of establishing the country's complete, comprehensive, fair and reliable credit information system.
"For the longest time, lending institutions outside non-banked have always been seen as deficient, or of a smaller class, or not as important to the country when it comes to lending and economic growth. In reality, the opposite is true, especially in the Philippines, where first opportunities for borrowing and lending are usually done primarily outside the banking space. So, when more lenders come on board, we are very excited and more so when it’s a company like Aeon that has the determination and potential to lend to more to the underserved and underbanked," Garchitorena said.
Role of Non-banking Financial institutions in Economic Development
The CIC President and CEO also said that out of all the other lending institutions such as banks, credit cards, microfinance companies, and cooperatives, non-banking lending companies had the most to gain from complying with CIC’s mandate so they could eventually make use of CIC’s credit information system (CIS).
“It seems that the lending companies are the most poised to take advantage of the CIC database. More particularly, lending companies that are highly technological, not burdened by the requirements of the BSP in relation to protecting and managing deposits and also have the initiative to move downwards into the underserved lending spaces to find more and more people to lend to. So, there’s initiative, there’s motivation, and certainly, they have the resources to use the data.”
Credit for Every Juan
Aeon Philippines President and CEO Takayuki Araki said they have been waiting for CIC’s CIS. “This is very important to us. Sometimes, maybe you could say that we are challenged. We were looking forward to when the service would be launched. Now, we are very happy.”
President Araki likewise expressed his company’s desire to serve the unbanked sector using CIC’s CIS, unlike big banks that usually cater to the A, B and C markets. He compared Japan’s experience with credit with that of the Philippines, noting that the Philippines has now reached a stage of economic growth where credit is being used to improve one’s living conditions.
“In Japan, it happened twenty-five to thirty-five years ago. At first, people used this type of financing for family and house living. Now, the Philippines has reached this stage, I believe. We would like to support these types of people that are called the unbanked. We would like to support all the lifestyles of all Filipinos and Filipinas from the bottom of our heart. Client first.”
Araki mentioned the need for companies to provide credit assessment based on positive and negative information, such as those that will be generated from the CIC’s credit report. “How to make a credit assessment based on the unbanked client, based not only on negative information but also positive information, that is a key factor and function for us.”
In the end, he spoke of the CIC and Aeon Philippines having one mutual goal. “We are always in the same boat. One day, we will make all Filipinos happy to infinity.”
Apart from having an educational and informational campaign on financial literacy called “Getting Ready for Credit,” CIC shall also open its credit information system for use in beta testing beginning May 2017.