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National ID enhances credit reliability

We are currently working on the full compatibility of the National ID into our Credit Information System



State-run Credit Information Corporation (CIC) has directed all submitting entities (SE) to provide the Philippine Identification (PhilID) card number (PCN) of borrowers when submitting basic credit information to enhance the credit reliability of data. The CIC database hosts some 606 SE, with over a thousand lending institutions.

In a letter to SE on 11 April, CIC president and CEO Ben Joshua A. Baltazar said the PCN could serve as a secondary ID for borrowers.

“We are currently working on the full compatibility of the National ID into our Credit Information System (CIS). The seamless integration of the PhilID in the CIC database will greatly enhance the reliability and accuracy of our credit data,” Baltazar said in a statement.

In addition, the head of the credit registry reiterated Rule 4.4 of the Implementing Rules and Regulations (IRR) of the Republic Act 9510 or Credit Information System Act (CISA), that participating SE must submit primary credit data of all their data subjects to the CIC.

Among the data required to be submitted is the data subjects’ government-issued identification information.

The CIC directive complies with the Advisory from the Philippine Statistics Authority (PSA) dated 19 May 2021, advising all concerned government agencies, the private sector, and the general public that “PhilIDs issued by the PSA shall be the official proof of identity of the cardholder in dealing with national government agencies, local government units, government-owned or -controlled corporations, government financial institutions, state universities and colleges, and all private sector entities.”

In anticipation of implementing the Republic Act 11055 or the Philippine Identification System (PhilSys) Act, the CIC has been preparing its internal systems to receive information derived from PhilSys, in compliance with the PhilSys Act and the CISA IRR.

“With the further distribution of the PhilID cards and implementation of the PhilSys Act, the CIC is looking forward to having all credit information associated with the use of the National ID submitted to the CIC database. This will greatly improve our borrowers’ historical credit information scope, improving its accuracy and usefulness in assessing their creditworthiness,” Baltazar added.

The CIC is a member of the inter-agency technical working group developing and refining the policies and standards for implementing PhilSys.

As of 4 March, the PSA reported that 8.1 million PhilID cards had been distributed nationwide. This is equivalent to 24.2 percent of its distribution target for 2022, which is set at 33.8 million PhilID cards.