THE Department of Trade and Industry (DTI) has partnered with credit bureau ADVANCE.CBP to develop a nationwide credit registry aimed at helping micro, small and medium enterprises (MSMEs) build financial records and gain better access to formal financing.
Under a memorandum of understanding, the two parties will launch SME Trust, a credit registry that will integrate digital identity verification, credit data, electronic Know Your Customer (e-KYC) technology and cybersecurity tools into the DTI’s network of more than 1,400 Negosyo Centers nationwide.ADVANCE.CBP, established in 2024, is a Philippine credit bureau accredited as a special accessing entity by the state-run Credit Information Corp. It provides credit information, scoring and risk assessment services to financial institutions and other businesses.The initiative seeks to address a long-standing financing problem among small businesses, many of which lack the documented financial and credit histories that banks and other lenders use to assess borrowers.Citing Philippine Statistics Authority data, ADVANCE.CBP said the country has more than 1.2 million MSMEs, accounting for 99.63 percent of registered businesses and 63 percent of employment. The sector contributes about 40 percent of gross domestic product.SME Trust will be implemented in three phases. The first will establish verified MSME business profiles through DTI’s Negosyo Centers, followed by the opening of the network to partner platforms and institutions.The third phase will generate credit scores that lenders can use in evaluating loan applications.The system is expected to give MSMEs structured, data-backed business records that can help demonstrate their creditworthiness to financial institutions.With their consent, MSMEs may also use the platform to check prospective business partners before entering into contracts, helping reduce exposure to fraud, payment delays and other counterparty risks.Trade Undersecretary Blesila Lantayona said SME Trust would help financial institutions make better lending decisions while giving entrepreneurs greater opportunities to secure affordable financing.She said the data could also help the DTI identify MSMEs that require additional mentoring, training or business development assistance.For financial institutions, standardized and machine-readable credit records are expected to improve risk assessment and speed up loan processing and approvals. The system is also intended to support compliance with Bangko Sentral ng Pilipinas reporting and responsible lending requirements.ADVANCE.CBP country manager Anne Chan said the system would give MSMEs a verifiable business identity and a pathway toward establishing formal credit histories.She said the partnership with DTI would help build a more inclusive and data-driven financial system by providing lenders with better information for assessing small businesses.
