According to market sources, the Association of Banks will announce today (28th) the list of multiple credit reference agencies (Multiple Credit Reference Agenc, MCRA) selected service institutions, and all three bidders are expected to pass the test, marking the technical launch of MCRA .
The official launch of MCRA is expected to be on or before September next year, during which time the old mechanism and the new mechanism are expected to be carried out on two tracks.
In response to the inquiries of "Hong Kong 01", the Association of Banks stated that the Association is working with different stakeholders, including the three selected credit reference service agencies, to actively and orderly promote the preparation work. It is expected that the credit information platform will be operational and put into service by the end of 2022. The latest news will be announced in due course.
Jia Guoqing said that at present, there are sufficient preparations in many aspects, including the completion of the test with more than 20 institutions including note-issuing banks, and has passed the independent verification of the third party, including system construction, information security and risk management.
(Photo by Gu Huiyu)
Completed and tested with more than 20 banks
One of the selected bidders is Ping An OneConnect, a subsidiary of China Ping An (2318) affiliated company Financial OneConnect. Jia Guoqing, CEO of the company, said that it is currently fully prepared in many aspects, including the completion and issuance of banknotes. It has been tested by more than 20 institutions, including banks, Chinese and foreign banks, and virtual banks, and has passed independent third-party verification, including system construction, information security, and risk management.
During the period before the official launch of MCRA, Jia Guoqing said that in the next two months, banks are expected to store customer data for the past 48 months and establish a central database.
Ping An OneConnect Credit Information will continue to carry out related work, including product research and development, such as credit scoring and credit reporting.
Jia Guoqing said that the parent company Ping An has operating experience in the Greater Bay Area and owns Qianhai Credit Information, which can bring synergies to both Hong Kong and mainland businesses, and hopes to develop cross-border credit information services.
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The parent company's business in the Greater Bay Area helps develop cross-border credit investigation services
TransUnion, which has been operating a personal credit database in Hong Kong for 40 years, suffered a data breach at the end of 2018, triggering the regulatory authorities to introduce the MCRA model.
Last year, the Association of Banks publicly called for tenders. In addition to Ping An OneConnect Credit Information, there were also three institutions, TransUnion and Novartis Integrity.
The credit database is mainly responsible for collecting and analyzing the borrowers' debts and credit institutions. When banks and other financial institutions approve loans, they can check the personal credit records in the database to judge their repayment ability.
Regarding whether the introduction of two more service providers can effectively improve service quality and reduce fees, the Banking Association responded that the charging level of personal credit information service agencies is a commercial decision, and it is expected that the introduction of more than one personal credit information service agencies can effectively promote the industry. Competition, thereby improving service levels.
TransUnion, which has been operating a personal credit database in Hong Kong for 40 years, suffered a data breach at the end of 2018, triggering the regulatory authorities to introduce the MCRA model.
The Association of Banks stated that the new mechanism effectively promotes competition in the industry, thereby improving service levels.
(Screenshot of TransUnion website)
Association of Banks: Introducing competitors to effectively improve service levels
Compared with the other two service agencies, Jia Guoqing said that the advantage of Ping An OneConnect Credit Information is that the parent company Ping An has technology and experience in information security protection. At the same time, the parent company has operating experience in the Greater Bay Area and owns Qianhai Credit investigation can bring synergies to both Hong Kong and mainland businesses. It is expected to develop cross-border credit investigation services, and it is believed that it can cater to the relaxation of policies for professionals in the Greater Bay Area and their credit needs.
As for how the new mechanism will ensure public privacy.
The Association of Banks stated that protecting the public's personal privacy is the Association's top priority. The Association will ensure that all participants and new platforms meet the industry's strict requirements for information security, system management, and data management. The assessment framework established by the Office of the Data Privacy Commissioner confirms that participants have the ability to meet the framework and regulatory requirements for information security and personal data privacy.
The association has also set standards on corporate governance and internal control, and set up a task force to strengthen consumer protection and supervision of personal credit reference service agencies.
