CREDIT line provider Mocasa on Wednesday said it is looking to partner with the Credit Information Corp. (CIC) to boost financial inclusion.
The partnership with CIC aims to help Filipinos get access to formal banking channels by using Mocasa and giving them a credit score, Mocasa Chief Operating Officer Julien Chien told a news briefing.
Mr. Chien said he expects the partnership to be finalized by the end of this quarter.
Credit bureaus are privately owned and operated reporting institutions that provide consumer credit information to private lenders.
The CIC is a government-owned and -controlled corporation that receives and consolidates basic credit data, acting as a database of credit information.
With the use of a credit database, Mocasa users can build up a credit profile and raise their chances of getting served by other financial institutions, Mr. Chien said.
Mocasa President and Chief Executive Officer Robin Wong said he expects Mocasa to rely more on data from the CIC in the future once the partnership is finalized, instead of requiring a proof of income from credit applicants.
“We will try to change the credit assessment engine to build it on the data of CIC,” he said. “This will be ready in the upcoming one to three years. I believe CIC and other commercial credit bureaus will play a great role for the country.”
A more active central credit bureau will help underserved sectors, Mr. Wong said, adding that building a credit score would let them get served by banks and other financial institutions.
He said a major challenge for the company has been the absence of a central credit bureau, which would help with risk evaluation.
Mr. Chien said Mocasa is planning to launch a reward and cashback program by yearend to increase user retention.
He added that Mocasa would continue to seek out merchants to boost user retention through exclusive discounts and perks.
Mocasa aims to reach three million credit users in three years, with an expected growth to 150,000 users by the end of this quarter and 300,000 users by yearend. — Aaron Michael C. Sy