Hongkongers will get access to more than one credit reference agency under new scheme aimed at promoting competition
- The Credit Data Smart programme will enable people to get a free report from Nova Credit, PingAn OneConnect Credit and TransUnion Credit
- ‘It gives the entire system much more resilience going forward,’ says Luanne Lim, chairman of the Hong Kong Association of Banks
The programme, called Credit Data Smart, aims to promote competition in the consumer credit reference industry and enhance service quality.
It will enable people to obtain a free credit report from three CRAs, namely Nova Credit, PingAn OneConnect Credit Reference Services Agency and TransUnion Credit Information Services, once every 12 months.
The introduction of the programme marks an important milestone in the development of consumer credit reference services in Hong Kong, as the city only had TransUnion as its sole CRA previously. By involving the participation of multiple institutions, the new model can provide more secure and reliable consumer credit reference services to the market, according to HKAB.
“It gives the entire system much more resilience going forward, and that competition will also create much better service quality for consumers and for banks alike,” said Luanne Lim, chief executive officer of HSBC Hong Kong and the chairman of the HKAB, at a press conference on Thursday. “So I think that’s a really big leap for us.”
The announcement comes as global credit risks have risen over the past years driven by economic recessions and industrial crises, hurting banks’ lending efficiency.
