BSP, JICA launch web-based SME credit scoring platform

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) and the Japan International Cooperation Agency (JICA) have rolled out a new web-based credit scoring system designed to help banks and other lenders better evaluate the creditworthiness of small and medium enterprises (SMEs).

The Credit Risk Database Philippines (CRDPh) System upgrades the existing stand-alone scoring tool into an automated online platform. It forms part of the second phase of the BSP-JICA Credit Risk Database project started in 2020.

The initiative aims to address information gaps that often make it harder for SMEs to secure loans, while helping financial institutions improve risk-based lending, loan pricing, and reduce reliance on collateral.

In a memorandum to banks and other BSP-supervised entities, the central bank said the CRDPh System is an automated platform designed to streamline the secured submission and processing of data and retrieval of CRD outputs. The system was developed to shift the stand-alone CRD scoring tool into a web-based platform.

“By complementing existing models and tools, the CRDPh System expects to enhance the financial institutions’ credit risk-based evaluation of SME borrowers, address information asymmetry, improve loan pricing, reduce dependence on collateral and ultimately support access to finance of SMEs,” the BSP said.

The platform was developed from anonymized financial, non-financial and borrower performance data submitted by 33 pioneer financial institutions. Using statistical models, it can generate a probability of default and credit score for SME borrowers with similar attributes, such as industry, location and key financial ratios.

Unlike credit bureaus, the CRD does not provide borrower-level credit histories. Instead, it produces statistical outputs that lenders can integrate into their internal credit evaluation processes.

Participation in the CRDPh System is voluntary, but both pioneer and new participating institutions are expected to periodically submit SME data using prescribed templates, in compliance with anonymization and data protection standards. The system uses encryption and secure transmission channels to meet BSP’s data governance rules.

The BSP said the platform will benefit both lenders with and without their own SME scoring models. Those without can use CRD outputs as a ready-made risk assessment tool based on a large national database, while those with existing models can use CRD data to validate their internal ratings.

For now, use of the CRDPh System is free-of-charge, although a fee structure may be introduced later to sustain operations. Planned enhancements include comparison of CRD outputs with a financial institution’s internal scores, consultancy services for SME portfolio analysis and statistical reports to help banks track sector trends and adjust lending strategies.

Japan’s CRD system, which started in 2001 with 52 members and now counts 165, has been credited with increasing SME lending volumes, boosting collateral-free loans, and enabling risk-based guarantee fees. The Philippines is the first country to adopt the model outside Japan.