Hong Kong launches new credit reference operating model

Credit Data Smart will guide the collection of credit as future reference to loan providers.

Hong Kong’s banking industry associations have launched Credit Data Smart, a credit reference operating model involving multiple agencies and banks.

Credit Data Smart is a new operating model that is adopted by three credit reference agencies (CRAs): Nova Credit Limited, PingAn OneConnect Credit Reference Services Agency (HK), and TransUnion Credit Information Services. 

These CRAs collect information about the consumer’s past and present consumer credit data from various credit providers, and then provide this information to potential new credit providers to help them assess the consumer’s creditworthiness.

With this, members of the public can contact the CRAs to obtain a free credit report from each CRA once every 12 months. 

When making credit decisions, credit providers will take into consideration not only the credit scores provided, but also other relevant factors.

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The platform will begin service on 26 April.

Credit Data Smart was developed by Hong Kong Association of Banks (HKAB), The DTC Association (The Hong Kong Association of Restricted Licence Banks and Deposit-taking Companies) (DTCA), and the Hong Kong S.A.R. Licensed Money Lenders Association Limited (LMLA), with the support of the Hong Kong Monetary Authority (HKMA).

A pilot programme, launched on 20 November 2023 and which involved 1,000 employees from nearly 20 institutions including banks, licensed money lenders, platform operators, industry associations and government institutions, found that the data accuracy of the credit reports and overall service performance of three CRAs in the pilot met requirements set by the industry associations.

In a statement, HKAB said that the introduction of Credit Data Smart marks an important milestone for consumer credit reference services in Hong Kong.

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“The new approach involves the participation of multiple institutions and the establishment of a new credit reference platform. All relevant parties have been collaborating closely with the common objective of providing secure and reliable consumer credit reference services to the market,” HKAB said in a statement posted on its website.

They also floated plans to launch promotional videos and social media content for sharing relevant details to promote the platform.

In a separate statement, Hong Kong-based CRA TransUnion welcomed the formal launched of Credit Data Smart, saying that it will open the Hong Kong market to greater innovation and financial inclusion.

“With the launch of CDS, TransUnion anticipates the evolving credit industry will expedite innovation within the sector, resulting in enhanced experiences for businesses and over 5.5 million consumers,” TransUnion said in a press release. 

“This transformation will also lead to increased economic opportunities and improved financial inclusion to consumers and businesses served by the credit industry and the wider financial sector,” it added.