CIBI Information Inc. Market Research Report

Background

Overview

CIBI Information Inc., established in 1982 as the Credit Information Exchange System, is the Philippines' first and only local credit bureau. It was founded under Presidential Decree 1941 by the Central Bank of the Philippines (now Bangko Sentral ng Pilipinas), the Securities and Exchange Commission (SEC), and the Financial Executives Institute of the Philippines (FINEX). In 1997, it transitioned into a private entity, becoming CIBI Information Inc. The company specializes in providing comprehensive credit information and business intelligence services to both individuals and organizations.

Mission and Vision

CIBI's mission is to advance financial inclusion in the Philippines by offering reliable credit information and business intelligence solutions. Its vision is to empower individuals and businesses with accurate data, fostering informed financial decisions and contributing to the country's economic growth.

Primary Area of Focus

CIBI focuses on credit reporting, credit scoring, background checks, and business intelligence services. These offerings are designed to assist financial institutions, businesses, and individuals in assessing creditworthiness, managing risks, and making informed decisions.

Industry Significance

As the only local credit bureau in the Philippines, CIBI plays a pivotal role in the country's financial ecosystem. It supports financial institutions in mitigating risks, aids businesses in evaluating potential partners, and assists individuals in understanding and improving their credit profiles. CIBI's services are integral to promoting financial inclusion and economic development in the Philippines.

Key Strategic Focus

Core Objectives

Financial Inclusion: Enhancing access to financial services for underserved and unbanked populations in the Philippines.

Data Accuracy and Reliability: Providing precise and trustworthy credit information to facilitate informed decision-making.

Technological Advancement: Integrating advanced technologies, including artificial intelligence (AI), to improve service offerings and operational efficiency.

Specific Areas of Specialization

Credit Reporting: Compiling and disseminating comprehensive credit histories of individuals and businesses.

Credit Scoring: Developing and providing credit scores to assess creditworthiness.

Background Checks: Conducting thorough background verifications for employment and business purposes.

Business Intelligence: Offering data analytics and insights to support strategic business decisions.

Key Technologies Utilized

Artificial Intelligence (AI): Employing machine learning algorithms and predictive analytics to enhance credit evaluations and fraud detection.

Data Analytics Platforms: Utilizing advanced analytics tools to process and interpret large datasets for business intelligence.

Secure Data Management Systems: Implementing robust systems to ensure data privacy and security.

Primary Markets Targeted

Financial Institutions: Banks, credit unions, and other lenders requiring credit information for risk assessment.

Businesses: Companies across various industries seeking background checks and business intelligence.

Individuals: Consumers interested in understanding and improving their credit profiles.

Financials and Funding

Funding History

In June 2020, CIBI Information Inc. was acquired by CTOS Digital, Malaysia's leading credit reporting agency. This acquisition marked CTOS's first regional investment and a significant step in its expansion into the ASEAN market.

Total Funds Raised

Specific details regarding the total funds raised by CIBI prior to the acquisition are not publicly disclosed.

Notable Investors

CTOS Digital: The Malaysian credit reporting agency that acquired CIBI in 2020.

Intended Utilization of Capital

Post-acquisition, the capital is expected to be utilized for:

Technological Enhancements: Integrating advanced technologies to improve service offerings.

Market Expansion: Extending services to a broader customer base within the Philippines and the ASEAN region.

Operational Improvements: Streamlining operations to enhance efficiency and customer satisfaction.

Pipeline Development

Key Pipeline Candidates

CIBI is focusing on developing AI-driven solutions to enhance credit risk assessment and fraud detection capabilities. These initiatives aim to provide more accurate and timely credit information to clients.

Stages of Development

Research and Development: Ongoing efforts to integrate AI technologies into existing services.

Pilot Testing: Implementing AI solutions in controlled environments to assess effectiveness.

Full Deployment: Rolling out AI-enhanced services to the broader market.

Target Conditions

Credit Risk Assessment: Improving the accuracy of evaluating creditworthiness.

Fraud Detection: Enhancing the identification and prevention of fraudulent activities.

Anticipated Milestones

Short-Term: Completion of pilot testing phases.

Medium-Term: Full deployment of AI-driven services across all platforms.

Long-Term: Achieving industry leadership in AI-enhanced credit information services.

Technological Platform and Innovation

Proprietary Technologies

AI-Driven Credit Scoring Models: Utilizing machine learning algorithms to develop more accurate credit scores.

Predictive Analytics Tools: Forecasting credit trends and potential risks using advanced data analysis techniques.

Significant Scientific Methods

Machine Learning Algorithms: Employed to analyze large datasets and identify patterns indicative of creditworthiness.

Predictive Analytics: Used to anticipate future credit behaviors and trends.

Leadership Team

Key Executives

Marlo R. Cruz: President and CEO of CIBI Information Inc.

Professional Backgrounds

Marlo R. Cruz: With over 28 years of experience in leasing, credit, and finance, Cruz has served as the President of the Credit Management Association of the Philippines (CMAP) and is an SEC-accredited Compliance Officer.

Key Contributions

Leadership in Financial Inclusion: Cruz has been instrumental in promoting financial inclusion initiatives within the Philippines.

Industry Advocacy: He has represented the industry in various forums, including the APEC Finance Ministers’ Process.

Competitor Profile

Market Insights and Dynamics

The credit information industry in the Philippines is evolving, with both local and international players entering the market. The establishment of the Credit Information Corporation (CIC) has paved the way for a more structured and comprehensive credit information system.

Competitor Analysis

CTOS Digital: A Malaysian credit reporting agency that acquired CIBI in 2020, marking its first regional investment.

TransUnion Philippines: A local office of the U.S.-based TransUnion, which partnered with banks in the Philippines in 2011.

Compuscan Philippines: A subsidiary of Compuscan, licensed as a Special Accessing Entity by the CIC in 2015.

CRIF Philippines: An Italian company specializing in credit information systems, business information, and credit management solutions.

Strategic Collaborations and Partnerships

CTOS Digital: The acquisition by CTOS Digital has provided CIBI with enhanced technological capabilities and regional expertise.

FICO: CIBI has partnered with FICO to offer globally recognized credit scoring solutions in the Philippines.

GDS and AdvanceAI: Collaborations with these international firms have enabled CIBI to integrate advanced data analytics and AI technologies into its services.

Operational Insights

CIBI's strategic collaborations have strengthened its market position by enhancing service offerings and expanding its reach. The integration of advanced technologies has improved operational efficiency and the accuracy of credit assessments.

Strategic Opportunities and Future Directions