MAKATI CITY, 18 September 2020 – Credit Information Corporation (CIC), the country’s central credit registry and repository of credit information, sought the help of the Senate Committee on Finance in securing a P90 million subsidy for FY 2021, the bulk of which is intended for the security, licenses, and maintenance of its database that contains highly confidential information.
In a virtual hearing of the Finance Subcommittee I presided by Sen. Imee Marcos on 16 September, the CIC emphasized the significance of its database which receives, processes, secures, and stores the financial credit data of over 18.9 million Filipino borrowers—almost 30% of the Philippines’ adult population—with 80 million contracts across more than 500 financial institutions.
“We are grateful to Senator Imee for taking the time to hear our proposed budget for 2021. Thirty-seven percent (37%) of our requested P90 million subsidy or approximately P35 million will be used to further strengthen the security regime of the CIC database, given that the credit data submitted to us contain highly sensitive personal information,” Atty. Aileen L. Amor-Bautista, the OIC President and Chief Executive Officer (PCEO) of the CIC, said.
Aside from the salaries of its employees, security is the highest expense incurred by the largest credit database in the country.
Cybersecurity vis-à-vis inclusivity
The CIC likewise stated that system enhancements will be continuously implemented to onboard additional submitting entities, load more data to cover more Filipinos, and realize the inclusivity of the credit registry as envisioned by the Credit Information System Act (CISA).
“As our database expands, however, the need to tighten the security of our system becomes all the more imperative, especially these days when potential cyber-attacks threaten businesses and organizations with the implementation of remote work amid the pandemic,” Amor-Bautista added.
Senator Marcos likewise expressed her concerns on CIC’s cybersecurity as it collects and processes critical data.
“CIC invests in managed security services from a third-party solutions provider to ensure heightened systems security 24/7. It also allocates budget for the regular annual penetration testing of the Credit Information System (CIS) to uncover possible security leaks. Other security solutions that will protect the CIS are also in place and would therefore need budget for the annual subscriptions,” the OIC PCEO explained.
Acting Senior Vice President for Credit Information Management System (CIMS), Ma. Bernadette Bautista, added: “There is always a room for more investment in security but we also need to be prudent with expenses.”
Both the submission of basic credit data to the CIC and access to its database by authorized financial institutions are 100% online and ongoing 24/7. Request for consumer credit reports may also be done online through the CIC’s accredited credit bureaus.
“Right now, CIBI Information Inc. is able to issue consumer credit reports with credit scores,” Amor-Bautista shared.
No audit suspensions, disallowances
The OIC PCEO further stated in the hearing that for the last seven years, the CIC never received negative findings from the Commission on Audit (COA).
“Our audit reports always stated that there were no balances of audit suspensions, disallowances, and charges as of year-end. For the FY 2019 Annual Audited Report, COA issued an unqualified opinion. It proves that we at the CIC have always worked with transparency and accountability,” she continued.
The CIC on Thursday also submitted additional documents to the Office of Senator Marcos, including details of its major programs and projects such as the Online Dispute Resolution Process (ODRP).
A significant percentage of the requested subsidy will likewise be allotted for the handling and managing of the ODRP which was launched in September 2019 so that borrowers may file a dispute on any incorrect, incomplete, or outdated information on their credit reports online.
“We are anticipating that the implementation of various debt relief measures amid the pandemic including the Bayanihan to Heal as One Act and even Bayanihan 2, as well as the growing demand for credit reports and credit scores may result in some confusion with regards to how non-payments are recorded within this period. When dealing with a large database with so many financial institutions and with data coverage from previous years, we need to anticipate the increase in disputes, and we need to be ready with the appropriate technologies to improve the customer experience,” the OIC SVP for CIMS elaborated.
Meanwhile, the OIC PCEO admits that the CIC will be operating on a fairly tight budget for 2021 to support government initiatives for efficiency: “We’re spending under five pesos per data subject at the current rate of subsidy which we feel is very efficient. We’re also hoping to improve our revenues over the years to slowly minimize our dependence on government subsidies.”
“Again, we would like to thank Senator Imee for giving us the opportunity to present our mandate, programs and projects, proposed corporate operating budget, and requested subsidy. We would need her support on this so that we can further strengthen the credibility of our credit registry as a core part of financial infrastructure, and instill the citizens’ trust and confidence on the country’s financial system,” Amor-Bautista ended.
The virtual budget hearing was also attended by the Climate Change Commission and Philippine Competition Commission.