Manila, Philippines – The Department of Trade and Industry (DTI) and ADVANCE.CBP (Advintel, Inc.) have signed a Memorandum of Understanding (MOU) to develop a credit profile registry intended to improve access to formal financing for micro, small, and medium enterprises (MSMEs) in the Philippines.
The agreement was signed at the DTI Head Office in Makati City on August 6, 2026. The initiative, called SME Trust, is envisioned as a dedicated credit profile registry that will integrate digital identity verification, credit data systems, cybersecurity, and electronic Know Your Customer technologies into the DTI’s network of more than 1,400 Negosyo Centers nationwide.
According to the Philippine Statistics Authority (PSA), more than 1.2 million MSMEs account for 99.63% of registered business establishments in the country, employ 63% of the national workforce, and contribute about 40% to gross domestic product.
However, access to formal credit remains a challenge for many small businesses, particularly those without documented financial histories that banks, lenders, and commercial partners can use when assessing creditworthiness.
Under the planned SME Trust system, MSMEs would receive verified business profiles containing structured, data-backed records. Subject to consent, businesses would also be able to review information on prospective commercial partners before entering into agreements, with the aim of reducing exposure to fraud, payment delays, and counterparty risks.
The registry is expected to be developed in three phases. The first phase will focus on establishing verified business profiles for MSMEs through DTI’s Negosyo Centers. The second will involve opening the network to partner platforms and institutions, while the third is intended to generate MSME credit scores that financial institutions can use when assessing financing applications.
For banks and other financial institutions, the proposed system is expected to provide standardised credit profiles based on verified data, support automated loan approval processes, and help meet regulatory and responsible lending requirements.
“SME Trust will help financial institutions make more informed lending decisions while giving entrepreneurs greater opportunities to obtain fair and affordable financing. It will ensure that businesses in rural communities enjoy the same digital visibility as those in urban centers. It will also enable DTI to provide more focused interventions by identifying areas where entrepreneurs may need additional mentoring, training, or business development support,” said Undersecretary Blesila Lantayona, Department of Trade and Industry.
“Filipinos are among the most entrepreneurial people in the world – yet MSMEs have lacked the trusted data infrastructure to prove their credibility and unlock financing. SME Trust changes that: a verifiable business identity, a pathway to formal credit, and a foundation towards building a more inclusive, data-driven financial ecosystem in the Philippines. Our partnership with DTI, starting with this MOU, marks the beginning of that transformation,” said Michelle Anne Chan, Country Manager, ADVANCE.CBP.
