HomeBusinessB2BWill they force Chinese tech companies to share user credit data?

Will they force Chinese tech companies to share user credit data?

Published on

China intends to pressure the country’s tech giants, such as Ant Group, Tencent and JD.com, to share their users’ consumer loan data in order to prevent over-lending and fraud, according to two sources familiar with the matter.

Chinese regulators, including the Central Bank, plan to require internet platforms to share their vast data on loans to some of the country’s credit bureaus, a source said.

The agencies, which are run or supported by the People’s Bank of China, will share the data more widely with banks and other lenders to properly assess risks and avoid over-lending, the Reuters explains with reference to sources.

The agency notes that Ant and Tencent declined to comment, while JD.com and the People’s Bank of China (PBOC) did not immediately respond to requests for comment.

“Smaller banks are generally in a weaker position when they partner with tech giants like Ant. They have relied heavily on Ant data to underwrite loans and manage risk,” a top Chinese regulator, as quoted by Reuters.

According to the source, “when defaults occur, they have to bear most of the losses.” 

“It’s crucial for lenders to have better access to more comprehensive and detailed credit data on borrowers,” he added.

Meanwhile, tech companies charge high service fees to banks in exchange for access to millions of customers.

Through its Alipay app, Ant collects data from more than 1 billion people, as well as 80 million merchants.

Additionally, Ant runs Sesame Credit, one of the largest private credit rating platforms in China, with proprietary algorithms and methodology that rate individuals and small businesses based on their use of Ant-linked services.

The company provides limited information on borrowers to about 100 banks and charges so-called “technology service fees.”

Latest articles

‘Strong Evidence’: Low on This Vitamin Can Cut Several Years Off Life

The crucial vitamin for life and “the take-home message here is simple – the...

Goodbye to Gym? This Pill Mimics the Benefits of Exercise – Says New Study

Doctors have recommended exercise for years as a way to improve and maintain health....

Are Vitamin D Supplements a Placebo? Study Suggests Limited Benefits for Common Health Issues

Are You Wasting Money on Vitamin D Supplements? New Findings Challenge Widely Held Beliefs...

Expert Reveals ‘a Real Surprise Drink’ that You Thought ‘HEALTHY’ May Be Making Your Skin Older

It may be one of the primary causes of premature ageing, according to the...

More like this

‘Strong Evidence’: Low on This Vitamin Can Cut Several Years Off Life

The crucial vitamin for life and “the take-home message here is simple – the...

Goodbye to Gym? This Pill Mimics the Benefits of Exercise – Says New Study

Doctors have recommended exercise for years as a way to improve and maintain health....

Are Vitamin D Supplements a Placebo? Study Suggests Limited Benefits for Common Health Issues

Are You Wasting Money on Vitamin D Supplements? New Findings Challenge Widely Held Beliefs...