The Credit Information Corp. (CIC) will roll out in June the inaugural phase of a credit-data system initially covering loan contracts.
The rollout forms are part of the larger goal of scaling back the cost of getting borrowed funds and make loans not just safer for creditors but convenient to the borrowers, as well.
CIC President and CEO Jaime Garchitorena said the credit-data system will keep three types of information on contracts that may be accessed by banks, or financial institutions (FIs), to include current contracts, closed contracts and contracts in default.
“Current contracts are loans and other credit obligations that are in good standing and will be kept on record for the duration of the contract. These will be kept for three years after the contract ends. Payment status will be recorded over the period covered by the contract,” he told the BusinessMirror.
Contracts ending in good standing after the closed contract date will be kept for three years. This constitutes the “good record” of the borrower.
“Contracts in default are contracts that are not in good standing. These records will be kept for as long as there is no resolution and will, in general, constitute the ‘bad records’ of the borrower,” he said.
Currently, there are 33 FIs that were scheduled and now preparing to contribute for the “soft launch” of the system in June. “We consider this as a soft opening or as user acceptance testing. The system will have full features activated. The system use will be limited to the first set of contributors,” he said.
The data submission can be done through a secured file transfer protocol.
The data subject inquiry can be accessed through a Web portal and/or an application-to-application interface. It allows for single data subject inquiry or multiple (batched) data subjects enquiry.
The data subject match and merge function is based on pre-established business/matching rules.
Other application’s security features are access controls and audit trails. “The access controls include authentication of username and password, different layers of authorization based on user roles and permissions,” Garchitorena said.
Starting this June, CIC credit-data system will be focused on accepting data from the “first movers”. The entire project entails two to three years of data gathering, as some FIs may not be technologically or institutionally ready to contribute data.
The CIC wants to gather the maximum amount of data in the shortest period possible. After gathering all the data, the data will be cleansed to the point that it can be accessed by the entire ecosystem of users with the highest level of accuracy.
Genivi Factao