Following the government’s response to the COVID-19 pandemic, including cutting benchmark interest rates and the reserve requirement ratio for banks to cushion the impact on the economy, information solutions provider TransUnion is offering a one-time free full customer base portfolio health check to all regulated financial institutions in the country. This will help lenders better understand consumer risk levels and provide valuable insights that will help them better facilitate the provision of much-needed funds when and where appropriate and to strategize to address current and imminent challenges.
“We all have a responsibility to support businesses and consumers however we can, and we at TransUnion are uniquely equipped to help not just our customers but the wider industry and the Philippine economy as a whole. Despite the unprecedented situation the global economy is now in, businesses cannot afford to be hasty, especially when we have data to help guide their decision-making processes. TransUnion’s mission is to deliver information for good and we’re keen to support the government in its aim of promoting greater economic stability and strength in our country, especially amid these extraordinary times,” said Pia Arellano, TransUnion Philippines President and CEO.
Inasmuch as doctors diagnose patients before prescribing medicine or treatment, TransUnion’s portfolio health check service provides various lenders with a comprehensive view of their borrowers’ credit relationships across multiple lenders, together with portfolio risk management tools such as credit scores and credit attributes that reliably identifies and segments the high risk versus the medium and low risk customers in the portfolio.
Consumers’ situations can change very rapidly especially during economic downturns, and it can be very challenging for lenders to identify high risk accounts from low risk accounts and optimize their portfolio performance if it is not being monitored regularly. The more frequently the portfolio is reviewed, the greater the ability of the lender to effectively mitigate increasing portfolio delinquencies and losses and bring about better portfolio health.
In support of the government’s planned program of interventions, TransUnion is opening up its portfolio health check service to non-members and has already reached out to key financial industry stakeholders like FintechAlliance.ph. Being custodians and stewards of comprehensive financial data across almost 24 million trade lines/accounts to date (and growing), TransUnion can provide critical insights that will help financial institutions proactively manage their portfolio. It will also help define appropriate strategies to respond to consumer concerns and extend tactical help such as targeted interventions like emergency loans.
“We believe in building and expanding a sustainable digital finance ecosystem that benefits every Filipino, and for that, we cannot waver from our duties no matter the situation. If we are to succeed in this fight, fear or pressure should not trump our better judgment. FinTechAlliance.ph is encouraging all members and other financial institutions to participate in this endeavor so we can all work as one and do everything in our power to protect and revive our economy,” said FinTechAlliance.ph Chairman Lito Villanueva.
Enterprise rehabilitation
Small businesses and microenterprises play a significant role in developing the Philippine economy, yet they are among the most affected and further marginalized by the current situation. Along with the millions of daily wage earners, MSMEs will benefit most from the loans and other forms of financial assistance that lenders are planning to roll out to help reboot and recover losses due to the lockdowns. TransUnion’s credit profiling will give lenders a clearer line of sight on their customers and help them approach any government directive with confidence.
“DTI recognizes that thousands of small-scale businesses are being affected by the enhanced community quarantine, with a majority being forced to shut down for the time being. While we have measures in place like grace periods for rent payments and other programs that provide funds for concessional lending to MSMEs, portfolio health check empowers banks and lenders to act confidently knowing they are managing risks while continuing to extend support to consumers and MSMEs. We need our financial institutions to continue extending loans with favorable terms to help our MSMEs to recover so that they can revive their businesses and get back on a growth track,” said DTI Secretary Ramon M. Lopez.
Given the Mandatory Grace Period and non-imposition of interest on interest, fees, and other charges for all loans with dues falling within the ECQ period as stipulated in the Bayanihan to Heal as One Act (R.A. 11469), TransUnion Philippines has proactively reviewed its data reporting policies and issued guidelines to arrive at the most optimal data contribution structure to prevent the impact to affected consumers while also maintaining the accuracy and integrity of the bureau databases so lending activities can continue. In general, these guidelines aim to ensure that the consumer’s current credit data position remains to be reliable for the duration of the emergency Payment Freeze or Mandatory Grace Period.
“Our aim at TransUnion has always been to provide our customers with critical data and powerful insights, which will allow them to make quicker, better, and more informed decisions. If we can bring a little more certainty to this unpredictable world by providing such data and insights to all the players in the financial industry, we believe we are one step closer to achieving our mission of information for good,” Arellano said.
Financial institutions interested in availing the free portfolio health check service only need to ensure that they have the necessary consent from their customers as required in the Data Privacy Act. As a global big data company, TransUnion is backed by sophisticated technology that ensures data security and compliance with local and international data privacy laws. The offer is valid until further notice. For inquiries and other details, contact Karen Dioso, TransUnion Philippines Senior Manager (Business Partner Solutions), at [email protected].