(20 May 2024 – Hong Kong) The recent roll out of Credit Data Smart (CDS) in Hong Kong is transforming the methods credit reference agencies share data in Asia.
Jointly developed with financial institutions and local authorities, the move will allow existing credit reporting agencies to pool existing data together to be made available to prospective new credit reporting agencies to better assess customer creditworthiness.
The move is expected to promote more healthy competition within the industry and is intended to improve the overall quality of service, forcing agencies to improve offerings as barriers to market entry will be lowered.
“The presence of multiple CRAs will promote healthy competition in the credit reference industry. This competition will have a direct positive impact on service quality, driving agencies to improve their offerings and provide enhanced services to consumers in the market,” commented a representative from the Hong Kong Association of Banks (HKAB) in an exclusive correspondence with Asianbankingandfinance.net.