Consumer credit reference platform poised for launch

Hong Kong’s consumer credit reference services platform Credit Data Smart will commence on April 26, allowing the public to access credit reports.

Each resident can only obtain one free report on any day in a 12-month cycle, said the Industry Associations, which includes The Hong Kong Association of Banks, The Hong Kong Association of Restricted Licence Banks and Deposit-taking Companies, and the Hong Kong SAR Licensed Money Lenders Association.

The Industry Associations also remind the public that the report offered to the citizens is for personal reference only and should not be used for any credit application. And credit scores are not the only factor to be considered when assessing credit applications.

The launch of Credit Data Smart means TransUnion will cease to be the only organization in Hong Kong that has produced consumer credit reports for years, and Nova Credit and PingAn OneConnect Credit Reference Services Agency (HK) will join.

The Hong Kong Monetary Authority welcomed the new platform, saying that it will facilitate competition in consumer credit data services and reduce the risks caused by only one private data provider in the market.

The pilot program of Credit Data Smart started in November last year, involving 1,000 employees from nearly 20 institutions including banks, licensed money lenders, platform operator, the Industry Associations and government institutions.

The pilot results showed that the data accuracy and overall service performance of the mentioned three CRAs met the requirements set by the Industry Associations.

In other news, the HKMA said it does not think local banks are tightening mortgage approvals, responding to the market reports that major lenders have done away with cash rebates on some mortgages.

Meanwhile, HKAB said it is understandable that the processing time of banks for mortgage reviews is longer as the applications surged after the removal of housing curbs.