DTI, Advance.Cbp Partner to Develop Msme Credit Profile Registry

The proposed SME Trust platform aims to give Filipino businesses verified profiles that can support financing applications and safer commercial transactions.

The Department of Trade and Industry and ADVANCE.CBP, operated by Advintel, Inc., have signed a Memorandum of Understanding to develop a dedicated credit profile registry for Philippine micro, small, and medium enterprises.

Signed at the DTI Head Office in Makati City on August 6, 2026, the agreement provides the framework for SME Trust, a proposed platform designed to help small businesses establish verified digital identities and documented financial profiles.

The initiative aims to integrate digital identity verification, credit data systems, cybersecurity, and electronic Know Your Customer technologies into DTI’s network of more than 1,400 Negosyo Centers nationwide.

Addressing a persistent financing barrier

MSMEs account for more than 1.2 million—or roughly 99.6%—of registered business establishments in the Philippines. They also provide more than 63% of the country’s employment, according to government MSME data.

Despite their economic importance, many small businesses struggle to obtain formal financing because they lack the documented financial history required by banks and other lenders.

Without reliable records, even businesses with consistent operations may find it difficult to demonstrate their creditworthiness, apply for affordable loans, or establish trust with prospective commercial partners.

SME Trust seeks to address this gap by creating structured, data-backed business profiles that participating enterprises and financial institutions can use, subject to appropriate consent and data-protection requirements.

How SME Trust is expected to work

The proposed registry will be developed in three phases.

The first phase will focus on establishing verified business profiles for MSMEs through DTI’s Negosyo Centers.

The second phase will open the network to participating platforms and institutions, allowing verified business information to support a broader range of commercial and financing activities.

The final phase is expected to introduce MSME credit scores that could help lenders assess financing applications using standardized business information.

With the business owner’s consent, the system is also intended to allow participating MSMEs to review information about prospective commercial partners before signing agreements.

This could help businesses better evaluate potential exposure to fraud, delayed payments, and other counterparty risks.

Supporting faster and more informed lending

For banks and financial institutions, SME Trust is intended to provide more consistent credit information than fragmented or purely self-reported financial records.

Machine-readable profiles could eventually help lenders automate portions of the loan approval process, shorten application turnaround times, and conduct more informed risk assessments.

The structured information is also expected to support responsible lending practices and applicable regulatory reporting requirements.

Actual loan decisions, however, will remain subject to each financial institution’s assessment, policies, and regulatory obligations.

“SME Trust will help financial institutions make more informed lending decisions while giving entrepreneurs greater opportunities to obtain fair and affordable financing,” DTI Undersecretary Blesila Lantayona said.

She added that the initiative could improve the digital visibility of businesses in rural communities while helping DTI identify entrepreneurs who may need mentoring, training, or business development support.

Giving MSMEs a verifiable business identity

Michelle Anne Chan, Country Manager of ADVANCE.CBP, said many Filipino entrepreneurs have lacked the trusted data infrastructure needed to demonstrate 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,” Chan said.

The partnership reflects a broader effort to make formal financing more accessible to small businesses while helping lenders manage risk through verified information.

If successfully implemented with strong consent, privacy, security, and governance protections, SME Trust could give Filipino entrepreneurs a clearer way to establish credibility and participate in the formal financial system.