CIC, ADVANCE.AI ink deal to launch credit bureau in PH

In a significant move towards enhancing financial inclusion in the Philippines, the Credit Information Corporation (CIC) and Southeast Asia’s leading digital identity verification provider, ADVANCE.AI, have signed an agreement to establish a new credit bureau in the country.

The partnership aims to address the growing needs of fintechs, digital banks, and other financial institutions by providing robust credit reporting and scoring services.

Set to commence operations in the fourth quarter of 2024, the credit bureau will primarily serve fintech companies, thrift banks, and digital lenders.

These entities are crucial in promoting financial inclusion and driving innovation within the Philippine financial ecosystem.

The agreement follows CIC’s earlier grant of a Special Accessing Entity (SAE) license to ADVANCE.AI after a rigorous, open tender process that began in September 2023.

The CIC Technical Working Group evaluated all applicants on several criteria, including financial stability, technical expertise, and industry reputation, to ensure the highest standards are met.

“We are looking forward to creating a more inclusive financial ecosystem to develop better credit reporting and credit scoring services, as well as increase competition and innovation of more diverse and robust credit data access to benefit both lenders and borrowers,” said CIC President and CEO Ben Joshua A. Baltazar.

Baltazar highlighted the alignment of the project with CIC’s financial inclusion mandate, which encourages non-bank lenders to utilize services from SAEs and enables MSMEs and individual borrowers to access their credit reports directly.

Leading the Philippine credit bureau business for ADVANCE.AI is Dennis Martin, a seasoned expert with 25 years of experience in the credit reporting industry.

Martin, formerly Group CEO of CTOS Digital and managing director of Experian Southeast Asia, expressed pride in the partnership with CIC.

“We are proud to have the support of CIC and play a pivotal role in advancing the credit information infrastructure in the Philippines,” said Martin.

“This new bureau underscores our commitment to serving the needs of fintechs, digital banks, and the digital economy in enhancing more informed lending decisions and financial inclusion across the country.”

Lito Camacho, Former Secretary of Finance for the Philippines, who was also present at the signing, described the collaboration as a pivotal moment for financial inclusion in the country.

“By combining cutting-edge technology with deep local expertise, ADVANCE.AI is committed to establishing a credit bureau that not only empowers lenders and borrowers but also drives innovation and transparency in the financial sector,” Camacho said.

ADVANCE.AI, which has been active in the Philippines since 2019, provides localized products and services tailored to the unique needs of the Philippine market.

The company’s global client base includes major players such as Standard Chartered, Shopee, CIMB, and Home Credit.