Hong Kong to Launch Credit Data Smart to Enhance Credit Services



by Fintech News Hong Kong

April 22, 2024

Credit Data Smart is scheduled to launch on 26 April, marking a significant step in the “Fintech 2025” strategy aimed at enhancing Hong Kong’s data infrastructure for financial technology.

The launch is in collaboration with the Hong Kong Association of Banks, the Hong Kong Association of Restricted Licence Banks and Deposit-taking Companies, and the Hong Kong S.A.R. Licensed Money Lenders Association Limited.

This initiative supports introducing multiple consumer credit reference agencies (CRAs) in Hong Kong. It enhances market competition and service quality and reduces the operational risk of having a single commercial service provider.

To improve public understanding and awareness of “Credit Data Smart,” the Industry Associations plan to release promotional videos and social media content sharing essential details about the service.

Upon the service initiation of “Credit Data Smart,” members of the public can obtain one free credit report annually from each consumer credit reference agency (CRA) to review their credit status.

Individuals are encouraged to contact the respective CRAs for information on application procedures, access methods, and appointment or daily quota availability. It is important to note that there is no urgency to secure the free report right at the launch, as it remains available throughout the year.

The Industry Associations remind everyone that these reports are intended for personal reference only and should not be used for any loan applications. Credit decisions by providers will consider not only the credit scores but other relevant factors.

“The introduction of ‘Credit Data Smart’ marks an important milestone in the development of consumer credit reference services in Hong Kong. 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,”

said HKAB.

The Hong Kong Monetary Authority (HKMA) has also expressed its support for the upcoming launch. By supporting the operation of multiple CRAs, the HKMA aims to mitigate the risks related to single points of failure and to assure the public of secure, reliable consumer credit reference services.

Featured image credit: Edited from Freepik

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