Session  5:  Using  the  Credit  Bureau:  Experience  from  the  Field  

Manolet Batallones BAP-Credit Bureau

 

2012 RBAP-MABS National Roundtable Conference June 7-8, 2012

Hyatt Hotel & Manila  

     

2012  RBAP-­‐MABS  NATIONAL  ROUNDTABLE  Hya$  Hotel,  Malate,  Manila  

June  7-­‐8,  2012    

BAP Credit Bureau, Inc. - CONFIDENTIAL

BAP Credit Bureau, Inc. - CONFIDENTIAL

Primary Services •  Positive Loan Data Exchange (Loandex) – Individual and

Corporate •  Positive Data Sharing (PoDS) – Consumer loans •  Negative File Information System (NFIS) – Individual and

Corporate Complementary Services •  Real Property Database System (RPDS) •  Title Check Caution List Database (TCLD)

Outsource Services •  Microfinance Credit Bureau (MiDAS) for Microfinance

Institutions •  Bank Certificate Verification System (BCVS) for the British

Embassy •  Customer Profile Registration System (CPRS) for the Bureau

of Customs’ payment system •  SafeTNet for the Philippine Finance Association

OUR SERVICES

MOA  with  RBAP  dated  May  31,  2004  for  Rural  Banks  to  Gain  Access  to  the  NFIS  

Early  Stages  Circa  2002-­‐2003  TesOng  NFIS  in  Mindanao    

BAPCB-RBAP PARTNERSHIP

•   Internet  Based  /  Accessible  NaOonwide  

•   Automated  matching  process  —   TAT  –  within  5  minutes  —   Maybe  enabled  24/7  operaOons  

•   Secured:  Firewall  protected,  128  bit  SSL,  User  IDs  and  passwords,  IP  Locking,  etc.  

•   Employ  a  world  class  name  search  engine  

NFIS FEATURES

•   Provides  Subscribers  with  a  Data  Management  Module,  “My  Database”  and  “Messaging”  

•   New  Features  §   Similar  Names  Inquired  Previously  (SNIP)  

 

•   Allows  mulOple  users  per  Subscriber  

NFIS FEATURES

•   Average  Daily  Inquiries:  17,000  to  20,000          per  day.  • Rural  Banks  Inquiry     ͌ less  than  1%.  • Compiled  over  4.5  million  records;  CCC-­‐62%,  ADV-­‐18%,  CIH-­‐6%,  Court  Cases-­‐14%.  • Rural  Banks  shared  50,  000  adverse  records.  • Processing  fee  reduced  to  P5/inquiry  in  2011.  

NFIS FAST FACTS

BAP Credit Bureau, Inc. - CONFIDENTIAL

Total - 199 (as of June 07, 2012)

NFIS SUBSCRIBERS

*11 Inactive Rural Banks

NFIS SUBSCRIBERS

YEAR ENROLLED RURAL BANKS

ACTIVE RURAL BANKS

INQUIRIES

2007 14 13 4,892 2008 15 13 12,370 2009 17 15 12,560 2010 34 22 10,248 2011 79 50 43,647

•   Provides  System  for  NegaOve  Data  Sharing        System  within  a  Community  of  Credit  Grantors.  

•   PosiOve  CollecOon  Results  from  Adverse  Delinquent  Accounts.

•   Strengthen  Credit  Risk  Management  Process  

 

BENEFITS TO RBs

•  Public  awareness  of  the  existence  of  the  NFIS  and  its  effect  on  their  banking  relaOonship.  

•  Borrowers  are  repaying  their  outstanding  loan  accounts  to  update  their  NFIS  records  in  order  to  re-­‐establish  bank  dealings  and  relaOonships.  

•  Borrowers  with  poor  repayment  history  are  agempOng  to  borrow  from  rural  banks  who  are  not  NFIS  subscribers.  

OBSERVED TRENDS

•  Banks  have  automated  their  NFIS  inquiry  process,  linking  bank  systems  with  the  NFIS  

•  Quality  of  Reports  on  Adverse  Loan  accounts  have  improved  in  the  past  2  years.  

 

•  Banks  have  incorporated  the  NFIS  in  their  credit  risk  management  process  

 

•  Adverse  Loan  reports  reveal  a  growing  number  of  negaOve  data  reported  from  the  provinces.  

 

TRENDS

Thank You

BAP Credit Bureau, Inc. - CONFIDENTIAL