GLOBAL information solutions provider TransUnion has tied up with Singapore-based credit collection agency Collectius to create practical payment arrangements for Filipinos to pay off their debts.
The first in Asia, this collaboration involves sharing of data and using it to find solutions to credit-related situations.
For Collectius, it begins with having access to the network of financial institutions in the Philippines that are part of the TransUnion ecosystem.
The latter will provide information that will enable the former to make strategies on collection approaches and programs.
Collectius will also have access to a host of services, such as analytics, credit reporting, investigations and portfolio reviews.
“TransUnion is more than just a credit bureau. Our data and analytics help our members like Collectius make informed decisions, which minimize risk, maximize profitability and ensure they are reaching out to the right borrower to help them improve their future credit standing,” said Pia L. Arellano, president and CEO of TransUnion Philippines.
A credit collection and debt acquisition firm, Collectius employs financial technology and innovation, as well as professional mediation in its processes.
Last year it acquired a nonperforming loan (NPL) portfolio from a major bank in the Philippines, consisting of around 360,000 credit contracts with a total principal value of $350 million.
In June of this year, it acquired its second portfolio comprised of 170,000 credit contracts with a principal of $103 million.
The company helps debtors settle their obligations and reintegrates them into society with a changed financial mind-set.
According to Collectius Group CEO Gustav A. Eriksson, their tie-up with TransUnion completes the credit scenario.
“Collectius will update data with TransUnion to show Filipinos who are performing responsibly. This can motivate them a lot to improve their credit information and creditworthiness so they can come back to society more financially knowledgeable than they were before,” he said.
The partnership is also seen beneficial for other TransUnion members since they can have access to the data contributed by the collections agency to the network.
With a comprehensive view of consumers’ credit profiles, this will give them more confidence in extending credit to their customers again.
Eventually, it will lead to a continuous cycle wherein financial responsibility opens doors and gives more access to credit to more Filipinos.
Financially empowered, they can have a strong consumption that results to more jobs that generate more money flowing into the economy.
“You see, debt holds us back from realizing our full potential. Every unpaid debt hurts our credit score. TransUnion is one with Collectius in helping Filipinos steadily make the necessary changes to get out of a bad financial situation. In the end, what matters is that every Filipino contributes to and benefits in a healthy economy,” Arellano said.
TransUnion Philippines provides quality data and value-added services. It assists clients with acquisition, portfolio management, and collections so they can make informed decisions that create opportunities, whether for business or personal purposes.
Supported by a reputable Swedish conglomerate, Collectius Group was founded by Eriksson and Ivar Björklund.
With operations in Singapore, Malaysia, and Thailand, it has extensive experience in credit management service and purchase of NPL portfolios of distressed consumer debt.
The company acquired CJM Strategic Management Solutions, Inc. last year to use local knowledge on the Philippine market.