The CEO as financial educator
PHOTOS BY JUSTINE BITANCOR/THE MANILA TIMES
For TransUnion Phils CEO Pia Arellano, financial literacy leads to fiscal responsibility
Credit assessment and rating remain unknown entities to many Filipinos, unlike in the United States where millions of credit card owners have a healthy awareness of how much their credit (or lack of it) impacts their economic lives. The blissful ignorance is interrupted only when collection agencies persistently call, demanding the settlement of bills ASAP. It is a nightmare scenario that everyone wants to avoid — and which TransUnion Philippines CEO Pia Arellano wants them to ultimately conquer through financial literacy that does translate into fiscal responsibility.
TransUnion’s core business lies in helping banks and other financial institutions determine a loan applicant’s capability to pay, thereby managing their risks. Its database that has 18 million profiles that stretch across credit card loans, personal loans, and mortgages among others does outnumber that of the five million credit card users in the country. But in the next two years, Arellano wants to show the individual consumers the advantages of having a healthy credit standing. TransUnion has already laid the foundations with its CSR programs that teach the financially challenged how to manage their finances, obtain credit, and even put up their own business.
She describes one of the more fulfilling parts of her job as CEO, “Our purpose is to utilize information for good and actively drive and support financial inclusion. My corporate experience does cut across banking, global payments, remittances, and telcos. It has paved a way for me to lead a company like TransUnion and play a significant role in nation-building. Empowering lenders to extend more credit can trigger a virtuous cycle of increased consumption, production, and job creation, ultimately fueling the economy and resulting in prosperity for more Filipinos.”
Financial literacy has always remained close to her heart. A graduate of economics from the University of the Philippines, her involvement in student councils first opened her eyes to the reality that economic empowerment was critical to the overall public welfare. It also made her willing to provide a voice or a platform for communication and inclusion for those who may not have the means to do so. She looks back at her UP days and says, “I learned how to speak up and to speak out. I learned the importance of being open-minded and embraced the need to acknowledge different points of view. The value of humility was also reinforced. A true leader is a servant leader – one who puts others needs first and nurtures people to perform to the best of the abilities.”
Despite her hectic schedule, she imparts her learning and ideas to her students at the Ateneo de Manila Graduate School of Business. She admits, “Teaching keeps me young and it allows me to be current. I never stop learning. The minute you think you know everything, that is the beginning of the end.”
With husband Jamir (left) and son Josh and Aly (right)
Books also continually sharpen her mind and refresh her spirit. The self-described bookworm recalls, “I’ve loved to read ever since I was a child. I’d save my allowance just to be able to buy books. The book currently by my bedside table is ‘The Book of Joy’ by the Dalai Lama and Archbishop Desmond Tutu.”
Arellano is expanding her financial literacy and economic empowerment advocacy beyond the four walls of the classroom and in a very practical way. Spectrum Fair, the “bazaar for millennials by millennials” which she launched, will be on its second year this September at Makati. Knowing one’s capability to pay and being responsible for it is just one side of the literacy story; another is having the right knowledge, tools, and motivation to create sustainable streams of revenue.
The bazaar will create physical storefronts for young entrepreneurs, most of whom had plied their trade through social media and ecommerce. “It is a good chance for them to meet their customers face to face,” Arellano enthuses. “The young owners themselves will be showcasing their products.”
Arellano is particularly stoked about Spectrum Fair because she co-created it with her daughter Aly who is an entrepreneur and social media influencer in her own right. Her son, Josh, is studying marketing. The weekends spent with her kids also recharge her personally while keeping her informed of important trends professionally.
Arellano says, “I absolutely love hanging out with my millennial kids. Food makes us happy so we usually go to our favorite ones or try new ones recommended by my daughter who is also a food blogger.”
Friday nights are reserved for date nights with husband Jamil. Out-of-town trips with the entire family are also something she looks forward to, as she relishes the shared experiences of discovering new places together.
Another way she reduces stress is to play tennis, which she finds “challenging and elegant.”
This CEO who counts the late Steve Jobs as one of her major influences is always looking to improve her serve. Arellano remains hands-on in spurring her own TransUnion team to reach their corporate goals. Management to her is empowering people “to fulfill their jobs,” she continues. “I am very proactive when it comes to business development, especially the strategic aspect that makes sure we are constantly growing, and that we are coming closer to our fulfillment of promoting financial inclusion.”
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