CIC generates 10 million credit reports in 2024

MANILA, Philippines — The state-run Credit Information Corp. (CIC) generated 10 million credit reports in 2024, doubling the previous year’s figure, as part of the agency’s push to make credit data a standard tool in lending decisions.

Despite the growth, CIC said the potential remains vast, with an estimated 100 million credit reports needed to be served over 70 million borrowers and around 300 million outstanding loan contracts.

CIC president and CEO Ben Baltazar said the increase in report generation reflects a growing awareness of the importance of credit data, but challenges remain in ensuring its widespread use.

“Many credit decisions in the Philippines are still not based on actual credit data. By accrediting new special accessing entities (SAEs), we are working to change that. The market is underserved, and we need innovative players to help expand access to credit,” he said.

Under Republic Act 9510, or the Credit Information System Act, the CIC is tasked with maintaining the country’s centralized public credit registry to provide reliable borrower information to banks, lending institutions and other financial entities.

Baltazar said that while the generation of 10 million reports is a milestone, CIC is targeting even greater adoption in the coming years.

“I think it is not out of bounds to expect generating roughly around 20 million credit reports this year, if not more. But right now, we’re confident that the credit market in the Philippines is actually a 100-million credit report market. That is something we can definitely achieve in the coming years,” he said.

“But we won’t be able to do that unless we work together and support the mass adoption of credit data for use in credit and even in valid cases of credit applications,” Baltazar said.

He also said that newly accredited SAEs like Island Credit Solution Inc. possess a unique advantage in the industry.

“These companies are, at their core, financial technology firms with specialized expertise in credit analysis, data processing and the development of innovative financial products and services,” Baltazar said.

The CIC has granted Island Credit Solution accreditation as an SAE, allowing it to operate as the newest credit bureau in the Philippines.

This partnership aims to enhance credit access by leveraging artificial intelligence (AI)-driven analytics and alternative data sources, providing more inclusive and accurate credit assessments for banks, fintech firms as well as micro, small and medium enterprises.

“Our goal is to bridge the gap between financial institutions and borrowers, particularly those who have been underserved or unbanked,” Hongcheng (Steven) Zhou, deputy CEO of Island Credit Solution, said.

“We offer fully digital services that cater not only to existing bank customers but also to those new to credit. By helping them start from zero, we contribute to a more inclusive financial system.”

As an accredited SAE, Island Credit Solution will offer AI-powered credit risk assessment tools to sectors that often face challenges in securing credit.

Baltazar said that CIC thoroughly assesses entities with the technology, knowledge and talent to navigate the complexities of the credit landscape.

“We have identified them as strong players capable of addressing these challenges head-on. As their regulator, CIC is committed to providing them with reliable, accurate and representative borrower data to support their operations,” he said.