THE Department of Trade and Industry (DTI) and TransUnion Philippines have signed a data-sharing agreement on Wednesday, Jan. 29, 2020, in which the DTI will provide publicly available data of business enterprises to TransUnion, one of the country’s largest credit bureau.
The data-sharing agreement will allow TransUnion to develop a “firm bureau database” to expand the distribution of its credit information to not only individuals but to firms as well. This criterion is measured by the World Bank in their Doing Business (DB) Report under its “depth of credit information index.”
“Today’s signing of the data-sharing agreement between the DTI and TransUnion is part of the government’s continuing effort to improve our competitiveness ranking. This partnership signals greater collaboration between the government and the private sector in using data analytics to help us in policy making and program development,” DTI Secretary Ramon Lopez said.
“This initiative is hitting two birds with one stone. By working closely through information-sharing with TransUnion, we are confident that we will secure additional points under the Getting Credit Indicator. More importantly, the publicly available data we provide will be processed together with their rich database to be used in determining borrowers’ credit worthiness. In the end, this will contribute to increasing the bank’s efficiency in processing loan applications,” he added.
Following the data protest filed by the Philippine government in 2018, the World Bank accepted the data correction request of the Philippine government when it confirmed that TransUnion is the largest credit bureau in the country with 8.47 million adult population in its database. This is 13.5 percent of the total adult population in the Philippines, exceeding the five percent World Bank threshold.
The data correction request resulted in a 35-point increase in the Philippines’ score for Getting Credit and a significant +52 notches increase in the indicator ranking.
“At TransUnion, we use information to empower our lending partners in giving financial access to more consumers. In order to do this, we continually strive to bring in more extensive credit information from various sources into our database. The more diverse and extensive data that we have, the more efficient our business partners will be in making decisions to extend credit to both consumers and businesses,” said Pia Arellano, president and chief executive officer of TransUnion Philippines.
The DB Report is an annual survey report released by the World Bank.
In the DB 2020 report, the Philippines reached the Top 100 competitive countries when it recorded a +26-notch increase, which remains the highest recorded annual improvement of the country since 2010.
From 124th place, the Philippines rose to 95th. (PR)