CIC credit reports rise to 27M in 2025 on strong demand from online lenders

CREDIT INFORMATION CORP. (CIC) generated 27 million reports last year, nearly tripling from 2024, driven by demand from online lenders and e-commerce channels as consumers availed of credit products like buy now, pay later and cash loans.

“[Around] 27 million credit reports generated last year. For the prior year, I think it was only around nine (million). So, it almost tripled,” CIC President and Chief Executive Officer Ben Joshua A. Baltazar told reporters on the sidelines of a central bank event on Friday, adding that they expect to generate “far more” credit reports this year.

Last year’s growth was mainly driven by online lenders, which accounted for about half of the total credit reports generated last year as credit product providers like Shopee, BillEase, or Lazada use CIC data for their underwriting process since they are unable to conduct traditional credit investigation, he said.

“It (online lending) will probably face its own set of risks because it’s largely done online. But it’s a thriving business right now. A lot of Filipinos are consumers. They are putting their earnings into spends. The way we see it right now, there are no internal alarm bells or issues on systemic risk. But what’s important is we have a tool to monitor and be transparent on the financial health of the borrowers,” Mr. Baltazar said.

The inclusion of data on postpaid mobile subscriptions from the country’s major telecommunications companies has allowed CIC to provide more credit information about borrowers, the official said.

“We’re making a push for utilities like electricity, water, maybe even internet for this year. So, that will complete the picture of a person’s financial health.”

Mr. Baltazar added that they are also still looking to onboard insurance information into their database, although there is a pending court case on the matter.

“In other jurisdictions, insurance information is reported. And if, let’s say, lenders find out that they’re actually insured, your credit score goes up. So, this is an opportunity for the insurance sector to be able to improve the value proposition to their clients.”

In 2019, the Makati Regional Trial Court Branch 56 nullified a circular issued by the CIC that required insurers to submit data on premium payments, insurance contracts, and policy loans of its clients.

The court ruled that the requested data are not in line with the basic credit data required to be submitted under the Credit Information System Act.

Mr. Baltazar said the use of credit information makes lending decisions “fairer and more transparent.”

“So, it becomes merit-based now, rather than arbitrary, or in some cases, palakasan (patronage). So, this is exactly the mandate of the law… We’re proud to say that we’re delivering on that mandate,” he said.

“The great thing about it is, if you have a low credit score, you can rehabilitate it and build it up.” — Aaron Michael C. Sy