CIC AND MIDAS Signs Memorandum of Support Agreement

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The Credit Information Corporation (CIC) and Microfinance Information Data Sharing, Inc. (MiDAS)  are one step closer to providing microlenders tools and services to enable safer and inclusive loans with the signing of a Memorandum of Support between the two data providers. The event was held at Manila Peninsula last Aug. 11,2016. Media and other guest witness the signing of the memorandum.

The concept and its future benefits to financing companies was discussed almost three years ago by Dr. Jaime Aristotle “Aris” Alip, founder of the Center for Agriculture and Rural Development Mutually Reinforcing Institutions (CARD MRI) and now chairman of MiDAS, with President & CEO of the CIC, Jaime Casto Jose P. Garchitorena.
MiDAS, is a groundbreaking home grown credit bureau tailor made for Microfinance Institutions (MFI’s) which was birthed through the joint efforts of the leading MFI’s in the country to assist MFIs in lowering incidences of over indebtedness and non performing loans within the sector.

Both had expressed interest in assisting the MFI’s, under the MiDAS database, as a  conduit of submitted information to show support to the CIC as well but its practical implantation only saw opportunity  last July 28, 2016, when the CIC had a meeting with MiDAS to discuss the data submission process of MFIs in compliance to Republic Act No. 9510 or Credit Information System Act (CISA). According to Dr. Aris, they are thankful to the CIC and its President, Mr. Garhitorena because CIC’s support was a huge step in helping MiDAS reach its ultimate goal of creating a financially inclusive and poverty-free country.
Aside from narrowing the gap between technological know how and CISA compliance, the involvement of MiDAS in assisting its member MFI’s is also expected to increase the willingness of traditional MFI’s to adopt a similar data sharing model with MFIs under the MiDAS credit bureau, strengthening the industry.

The larger  the MiDAS  MFI  population grows, the larger database, and this will mean more accessible borrower information available to the community.

Using shared databases in assessing borrowers total exposure should cut non-performing loans by a significant rate, thus increasing the survivability of the MFI’s and ensuring a healthy balance in the economies of scale in credit.


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