Credit info reporting on the rise
Credit to Author: MAYVELIN U. CARABALLO, TMT| Date: Thu, 06 Jun 2019 16:13:48 +0000
More consumers in the country will easily access mainstream credit as the number of businesses contributing information to their credit report is seen to rise further by the end of 2019.
In a statement on Thursday, credit bureau and information solutions provider TransUnion said it now features more than 20.7 million account records in its database as of April 2019.
The latest figure is a 570-percent increase from the baseline data of almost 3.1 million total account records in 2012.
Of the total number of account records, TransUnion said about 13.7 million are open trade lines — open mortgages, credit cards, loans, bank overdrafts as well as other credit agreements — from a total of 8.8 million unique consumers.
It added that over 40 organizations, such as banks and other financial institutions, contribute information and are currently active in the TransUnion Philippines ecosystem. About 20 more are joining soon, particularly from the rural banking sector.
In addition to the largest commercial banks and credit card issuers, TransUnion also mentioned that telecommunications companies and fintechs are increasingly contributing data for the benefit of consumers.
Based on current trends, TransUnion expects to see an increase in reporting of 2-3 million more trade lines by yearend.
The rural banks will greatly contribute to achieving this target, and TransUnion is also encouraging utility companies, cooperatives, and the insurance industry to become new partners.
TransUnion works on a data-sharing model where members contribute updated information across their customer database, including payment history, in return for access to the data of other members.
TransUnion Philippines President and Chief Executive Officer Pia Arellano said the availability of accurate credit information is an important catalyst to an efficient credit ecosystem, which can help fuel and support further economic growth.
“It’s ultimately about openness and collaboration. We’ve been working closely with our members for seven years now and businesses and consumers are seeing the benefits this brings,” she said.
Arellano added that the consumer market is maturing at an incredible rate and is providing more and more benefits to Filipinos.
“Modern credit bureaus feature positive information about how people are maintaining loan payments, which in turn can provide them with access to further financial products at potentially more competitive rates,” she added.
As many Filipinos still don’t have a credit report, or have an incomplete credit report, and often find it difficult to open mainstream financial products, Arellano said the increase in members contributing information to its database means TransUnion was able to help address this and increase financial inclusion.
The post Credit info reporting on the rise appeared first on The Manila Times Online.