Unbanked Filipinos will get a scorecard from RCBC
17 July 2022
The listed bank seeks to overcome the difficulties in appraising loans to the unbanked in order to hasten financial inclusion through data analytics, according to Bennett Santiago, head of the credit management group at RCBC.
The country’s unbanked population could benefit from financing according to a scorecard from RCBC that is being developed by Yuchengco-led Rizal Commercial Banking Corp. (RCBC).
The listed bank seeks to overcome the difficulties in appraising loans to the unbanked in order to hasten financial inclusion through data analytics, according to Bennett Santiago, head of the credit management group at RCBC.
In a webinar hosted by the Asian Bankers Association (ABA) and the Association of Credit Rating Agencies in Asia, Santiago stated, “From a credit viewpoint, we are trying to discover ways to make credit available to the unbanked, based on how they spend government subsidies” (ACRAA),
The scorecard will assist in determining the risk profile of the unbanked, who face difficulties due to their lack of credit and banking history. Utilizing external data, such as behavioral, personality, and public data, will raise the score.
Additionally, efforts will be made to promote financial discipline and knowledge in order to increase credit eligibility.
According to Santiago, the bank saw the value of data analytics during the pandemic.
“We had to have a differentiated client review. We couldn’t have a one length in shape all kind of monitoring. We ought to spend extra time on excessive danger and coffee danger accounts, (and) that is in which the opportunity of digitization, automation, device mastering occurs for credit score danger management,” Santiago stated.
He stated records analytics helped enhance series approach for the duration of the pandemic and enabled the commercial enterprise to enforce records-pushed selections to mitigate danger. “Understanding delinquency drivers, on a client level, turned into made feasible via using records technological know-how and analytics,” Santiago stated.
Meanwhile, the Credit Information Corp. (CIC) has categorized scorecard from RCBC as an having access to entity permitting the financial institution to get entry to borrowers’ credit score statistics both without delay from the CIC or via any of its accepted bureaus, specifically CIBI Information Inc., CRIF Philippines, and Transunion Information Solutions.
The Yuchengco-led regular financial institution can now higher verify its borrower’s credit score history, and boost up its mortgage approval process.
