CEBU, Philippines — 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 in a statement.
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, TransUnion decided to offer its services to creditors or lenders in order to help mitigate risk.
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.
According to Arellano, 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, she added.
“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.