FICO is debuting the FICO Score for International Markets in the Philippines. Working with CIBI, the only local credit bureau, and local cooperative banks, the credit assessment will standardize the current system and improve consumer access to a greater range of inclusive financial services. FICO provides industry standard objective risk assessment for consumer credit decisions.
Consumer Credit Score, FICO’s local partner, will roll out the program immediately, with plans to have scores available for consumer loan applications in December 2016. Consumer Credit Score is also working with FICO to develop an alternative scoring model in the first half of 2017 to address credit scoring needs for people who have no credit history.
FICO’s Financial Inclusion Initiative involves a number of new financial products, cloud-based services, mobile platforms, and business partnerships to increase the ability of lenders to make credit available to people worldwide. 2 billion people worldwide are unbanked, with an additional billion who have access to a bank, but no credit history.
Retail banks in the Philippines have taken advantage of the country’s current economic growth by marketing several new consumer loan products, particularly auto loans and consumer credit cards. New online and mobile applications for consumer loans have also been developed and implemented.
The government sponsored Development Bank of the Philippines has a student loan program called HELP–Higher Education Loan Program. At this time, creditworthiness or scoring is not part of the eligibility screening for the education loan program. Moral character and physical and mental stamina are factors that are assessed. The Development Bank is implementing new procedures to increase collection of unpaid student loan debt from previous programs.