The Securities and Exchange Commission (SEC) said the proposed Unified Loan Identification (ULI) system is still under development.
“The SEC cannot provide any specific targets at this time, as we are still in the process of developing and improving the system. Rest assured that we are focused on rolling it out to the public as soon as possible to ultimately improve conditions in the lending and financing industry,” the office of SEC Commissioner Rogelio V. Quevedo said in an emailed response to questions on Wednesday last week.
At a Senate hearing on October 6, the SEC announced plans to introduce a ULI system to simplify credit access and curb predatory lending and abusive collection practices.
Mr Quevedo had earlier said ULI would rely on verified data to ease credit access amid challenges in the implementation of the national ID system.
From January to September 15, the SEC received 5,415 complaints, mostly involving financing and lending companies. About 66% of these were related to unfair collection practices, mainly involving unregistered firms and online lenders.
“The SEC faces difficulties in efficiently auditing all lenders in real time, which can lead to regulatory blind spots. ULI [will] “Ensure that all lender activities and transactions are recorded, verifiable and readily accessible to regulators, closing compliance gaps,” Mr. Quevedo’s office said.
The proposed ULI system seeks to consolidate and secure verified credit data to address fragmentation, fraud and regulatory inefficiencies, thereby enabling faster and secure loan processing.
“The ULI will be linked to the National ID (Philsys) or eGov App account and stores verifiable credentials, KYC (Know Your Customer) information, credit history and outstanding obligations of the borrowers. This means borrowers will not have to submit the same documents to different lenders again and again – their credentials are easily shared across institutions and are instantly verifiable. Is,” it said.
Through ULI, lenders will be able to access verified borrower data, speed up loan approvals and reduce frauds such as duplicate applications.
The SEC said it plans to use blockchain technology for real-time audit trails, automated compliance, and transparent oversight to ensure financial stability and borrower protection. It added that loan details will be securely recorded and encrypted for sharing between lenders and regulators to prevent overlapping loans and excessive credit risk.
“By integrating blockchain with borrower identification, AI compliance and real-time SEC oversight, the ULI system aims to create an efficient, transparent and secure lending environment while supporting financial inclusion and consumer protection in the Philippines,” the SEC said. , Alexandria Grace C. Magno
