THE Securities and Exchange Commission (SEC) said the proposed unified lending identification (ULI) system is still under development.
“The SEC cannot give a specific target at this time, as we are still in the process of developing and perfecting the system. Rest assured that we are focusing on delivering this 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 e-mailed reply to questions on Wednesday last week.
At a Senate hearing on Oct. 6, the SEC announced plans to introduce the ULI system to simplify credit access and curb predatory lending and abusive collection practices.
Mr. Quevedo earlier said the ULI would rely on verified data to ease credit access amid challenges in the implementation of the national ID system.
From January to Sept. 15, the SEC received 5,415 complaints, mostly involving financing and lending companies. About 66% of these were related to unfair collection practices, primarily 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 accessible to regulators instantly, closing compliance gaps,” the Office of Mr. Quevedo said.
The proposed ULI system seeks to consolidate and secure verified credit data to address fragmentation, fraud, and regulatory inefficiencies, allowing faster and safer loan processing.
“The ULI will be tied to the national ID (PhilSys) or the eGov App account and stores verifiable credentials, KYC (Know Your Customer) information, credit history, and outstanding obligations of borrowers. This means borrowers won’t have to repeatedly submit the same documents to various lenders — their credentials are easily shared and instantly verifiable across institutions,” it said.
Through the ULI, lenders will be able to access verified borrower data, expediting loan approvals and minimizing fraud 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. Loan details will be securely recorded and encrypted for sharing between lenders and regulators to prevent overlapping loans and excessive credit risk, it added.
“By integrating blockchain with borrower identity, AI compliance, and real-time SEC oversight, the ULI system aims to create an efficient, transparent, and secure lending environment, supporting financial inclusion and consumer protection in the Philippines,” the SEC said. — Alexandria Grace C. Magno
