CIC requires P60M paid-up capital, P120M tech investment
The government-run Credit Information Corp. (CIC) said it is on track toward its target of accrediting at least five credit bureaus to operate in the Philippines by the end of the year.
In an informal discussion with reporters over the weekend, CIC President and Chief Executive Officer Jaime Garchitorena said that to date, there are eight Special Accessing Entities (SAEs or credit bureaus) in all applying for a license to operate in the country.
He did not give their specific names but said they consisted of five foreign SAEs and three local entities with foreign partners.
The law defines an SAE as “a duly accredited private corporation engaged primarily in the business of providing credit reports, ratings, and other similar credit information products and services.”
Credit bureaus are deemed essential to the proposed credit information ecosystem in the country as they create innovative value-added products and services, such as credit scoring and analytics, using the CIC’s credit database.
Garchitorena said the requirements under the accreditation process for these SAEs include a paid-up capital of P60 million and best practices evaluation .
“The filters we’ve set up for credit bureaus are fairly high in terms of finance, because they will be the ones accessing the data from the CIC,” he said.
Besides the paid-up capital, SAEs are also required to invest P120 million in their technology and operations.
“So off the bat, the first filter is fairly high—the financial capability. Then, of course, we’ll be running them through other evaluations for best practice of their business in their countries of origin,” he added.
The SAEs will also have to present a business plan that matches the agenda and goals of the CIC, which are essentially to get credit reports and data generation from to the farthest corners of the country.
The CIC chief said they have so far received positive applicant response.
CIC is a government-owned and -controlled corporation (GOCC) established in 2008. It serves as a central credit registry, collecting positive and negative credit data on borrowers and providing consolidated basic credit information to individuals, businesses, financial institutions, private credit bureaus, and other entities afforded the right to access the same.