STATE-RUN Credit Information Corp. (CIC) said it launched its Covered Entity Portal, through which financial institutions can register and submit documents online.
“The CIC has always envisioned an end-to-end technology driven process. ARTA (Anti-Red Tape Authority) provided the initial motivation to improve government services so it was easier to switch to an almost fully automated process that would minimize physical interactions among CIC personnel, system users, and the general public,” CIC President and CEO Jaime Casto Jose P. Garchitorena was quoted as saying.
CIC recently issued Circular No. 2020-01, “Requirements on Becoming an Accessing Entity of the Credit Information Corporation” to enable “contactless and paperless” access for financial institutions to the Philippines’ sole credit registry.
It said applicants can register, update and submit documents online through the web-based application Covered Entity Portal, as well as manage their own user accounts.
Applicants can also access and upload the system-generated memorandum of agreement and the Accessing Entity Information Sheet (AEIS) on the portal.
The entities that can access the credit data are banks, quasi-banks, trust entities, investment houses, financing firms, cooperatives, non-governmental and micro-financing organizations, credit card and insurance companies, as well as state lending institutions.
Mr. Garchitorena said the CIC database serves as a “valuable tool” for enhanced risk assessment for financial institutions regarding a borrower’s capacity to pay, especially now that more small businesses are expected to avail of financial support programs and restructuring of loans.
“But even as these are designed to help borrowers and MSMEs (micro, small, and medium enterprises) in a state of credit distress, lenders still need to approach this from a data-driven, risk-based perspective,” he said.
Financial entities can access CIC’s credit reports at P10 per inquiry until December.
At the end of March, the credit registry’s database had records on 11.3 million unique individuals and around 83,000 firms.
CIC was created by Republic Act No. 9510 or the Credit Information System Act. — Beatrice M. Laforga
