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“Technology for Good: Wave of Change in Strong AI Era” Artificial Intelligence and Digital Finance Seminar held in Hangzhou

On May 19th, the seminar on artificial intelligence and digital finance “Technology for Good: Wave of Change in Strong AI Era” jointly organized by the GDFC and the CMAA was successfully held in Hangzhou. More than 20 experts and scholars from domestic and foreign research institutions, universities, industry associations, financial media, and relevant institutions attended the conference online or offline, and conducted in-depth exchanges and discussions on the technology, application, morality and ethics, and impact of AI.

In terms of the progress of core technology development of AI, experts illustrated the progress of core technology development of AI represented by ChatGPT. As a natural language processing tool driven by artificial intelligence technology, ChatGPT, with its advantages as a transformer, surpasses the traditional Convolutional Neural Network, optimizes model structure and training efficiency, etc. Through pretraining and reinforceed learning, ChatGPT manages to conduct dialogue and write articles after it succeeded in communicating with human. The success of a series of large models such as ChatGPT indicates that models have the ability to emerge, whereas only when the model and data both cross the threshold and undergo sufficient training can scale effects occur, which unleashes the models’ emergence ability to generate strong capabilities and massive knowledge. In this process, more attention needs to be paid to data quality compared with model construction, and users ought to avoid excessive parameterization while strengthen data application to ultimately improve the overall effectiveness of models.

When it comes to the application direction and ecological environment of AI in the future, experts pointed out that with the gradual expansion of models and data, AI technology will gradually develop towards multimodality and specialization in the future. The development of current AI models will promote a new round of generative AI applications. Through multiple rounds of dialogue, AI systems generate feedbacks by following the process of problem comprehension, problem retrieve, and answer generation. In the future, AI technology will have significant impacts on areas such as psychological education, student management, medical services, banking, copywriting, etc. Meanwhile, as AI technology continues to deepen its integration into human life, guiding AI towards a right direction becomes particularly crucial. In order to achieve the goal of AI being virtuous, the primary factor is to ensure that the input data itself is ethical. We need to prioritize fundamental core elements and principles as an assessment standard to achieve a harmonious relationship between AI and humanity.

In terms of the ethical issues of AI, experts pointed out that the root of the ethical issues of information technology is that Moore’s Law of information technology is much faster than the development of social and cultural systems. As emerging technologies such as artificial intelligence benefit mankind, the corresponding ethical governance system should evolve together with technological progress. At the same time, since the boundary between artificial intelligence and human intelligence has become blurred, and it carried out a large number of human-machine value alignment engineering to make machine goals conform to human intentions, plus its innovation and influence are highly uncertain, we should promote top-level legal system design, technology ethics research and publicity, promote open source innovation, build cooperative research and open source innovation platforms and develop a series of testing tools to conduct quantitative testing of its security and ethical issues so that we can build a relatively perfect technology ethics governance system.

In terms of the impact of AI on the financial industry, experts pointed out that making use of the effect of computing power can improve the operational efficiency of the financial industry. We could exert extreme computing power to solve instantaneous computing problems of high-frequency trading, and we can also exert super computing power to support system engineering such as large model training and financial complex modeling. Specifically, first, the scenes that are extremely sensitive to instantaneous calculation speed. They can be improved by computer architecture level optimization, precomputation, software to hardware, and incremental calculation of complex indicators of real-time data to improve real-time computing speed. The second is the field of computing power for super-scale complex computing, it can optimize the atomic computing efficiency of the application layer, and optimize the atomic computing of data structures, algorithms and compilers. In terms of computing power allocation optimization at the scheduling layer, all kinds of constraints should be balanced, and computing power scheduling optimization should be done in terms of network delay, data communication efficiency, node processing capacity, atomic computing processing time budget and task turbulence.

In respect of AI investment hotspots, experts pointed out that AI plays a role in reducing costs and increasing efficiency in related industries, since it accelerates the commercial implementation of large models, promotes their commercial realization, and creates more opportunities for industry development. At the same time, the comprehensive nature of AI information retrieval will expand its scope of application in investment, gradually penetrate from high-frequency investment to low-frequency investment, and continuously expand its application value.

Experian decided to leave the credit reporting market of mainland China last week and its commercial credit reporting business will be sold out

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PCCM 2020-11-16

15 years after entering China, the international credit reporting giant Experian decided to withdraw from the Chinese mainland market. “There is no sign, and we are also very confused.” Experian’s employees in China told the Economic Observer（http://www.eeo.com.cn） that he suddenly received the news on the morning of November 10.

Since then, Experian’s business partners who learned of the news told journalist, “It was too sudden and said that they would abandon the Chinese market. However, the business cooperation between the two parties is still going on normally.”

On November 13, the relevant officer in charge of Experian Asia Pacific sent an English statement to the Economic Observer, saying, “After an extensive strategic assessment of our business, we will the business credit reporting service of Experian China and retain the decision-making analysis business only in Hong Kong and Taiwan, thereby streamlining the business in Great China.”

The statement also stated, “We are in dialogue with potential buyers of Experian China’s business credit reporting services.”

The journalist learned that at present, Experian mainly has two businesses in China: corporate credit investigation and decision analysis. Among them, the business line of decision analysis will be liquidated and exit; the business line of business credit reporting is looking for potential buyers.

Dr. Xinhai Liu executive deputy director of the Professional Committee of Credit Management(PCCM) from the China Mergers and Acquisitions Association(CMAA), analyzed to the journalist from the Economic Observer that Experian is a company listed in the UK. Any decision of the company is based on the pursuit of commercial profits and responsibility to shareholders, prompting Experian to make this decision. The reason may be related to Experian’s business operations in the Mainland China.

Withdraw from the market of mainland China

Looking back at Experian’s development history in China, as early as 2005, Experian, a British multinational credit reporting group, began to conduct business in China; in 2014, it wholly acquired Chinese business credit reporting service provider Xinhuaxin; it was opened on September 24 of the same year. The Chinese company name is “Experian（益博睿）”; in 2018, it officially obtained the business credit record of the Chinese central bank（a kind of regulation）.

In May 2018, the Business Management Department of the Central Bank accepted the filing application of Experian Credit Report (Beijing) Co., Ltd. (hereinafter referred to as “Experian Credit Report”), an enterprise credit reporting subsidiary established by Experian in China.

According to Dr. Xinhai Liu, Experian is both the world’s largest consumer credit reporting agency and the oldest consumer credit reporting agency. Since its business scope covers the business credit reporting part, it can also be considered the world’s largest credit reporting agency. .

It has been more than two years for Experian to obtain the business credit reporting record of the People’s Bank of China(PBoC). “Before obtaining the record, we mostly do business with Experian’s original international customers, but after obtaining the record, we can expand the customer base in the country. More domestic medium and large companies have business dealings with Experian. This is a very obvious change.” When talking about the impact of obtaining credit reporting on the business, Huang Jian, CEO of Great China Experian, said in an interview with the Economic Observer reporter in June this year.

According to official sources, at present, Experian’s business credit reporting service customers have covered many industries such as finance, e-commerce, retail, manufacturing, media, telecommunications, and chemicals, including small and micro enterprises, large and medium-sized enterprises, foreign trade enterprises and other types of enterprises.

Experian has also taken many business actions in mainland China in the past few years, hoping to work hard to achieve business growth. During the recent CIIE, Experian made an appearance at the CIIE and said it would introduce its global leading GDN (GlobalDataNetwork) solution to the Chinese market. In the 2020 annual report, Experian stated that there are currently approximately 1.7 billion adults without bank accounts, and more than 1 billion of them have no access to formal financial services in the Asia-Pacific region.

Dr. Xinhai Liu analyzed that Experian is a listed company, and any shareholder’s decision is to pursue commercial profits. One of the reasons that prompted the group to make this decision may be due to its business operations. In the short term, it may be that the epidemic has a relatively large impact on the business; in the long term, it may be related to Experian’s entry into mainland China for more than ten years and not launching the most commercially valuable consumer credit reporting business.

The journalist learned that the revenue in Greater China was not as expected might be the main reason that Experian made the above decision. Experian (EXPN.L)’s 2020 annual report disclosed on the London Stock Exchange showed that revenue by region and business activities was US$5.179 billion, and operating profit recorded US$1.185 billion. Among them, North America revenue was 3.247 billion U.S. dollars, Latin America revenue was 732 million U.S. dollars, Britain and Ireland revenue was 769 million U.S. dollars, and EMEA (Europe, Middle East, Africa)/Asia Pacific region revenues recorded 431 million U.S. dollars, accounting for 8.3%. In the previous fiscal years of 2018 and 2019, the EMEA/Asia Pacific region accounted for 8.43% and 8.67% of revenue, respectively, which was much lower than the other three regions (North America, Latin America, the United Kingdom, and Ireland).

In Dr. Xinhai Liu ‘s pointview, Experian’s business in the United States has been very successful, but it is lacking in domestic localization in China, especially in the development of China’s digital economy, it may be related to China’s economic situation, rule of law, and financial regulatory environment.

Clearing business, looking for potential buyers

Experian mainly conducts four major businesses in China: (i) business credit reporting, (ii) decision analysis, (iii) anti-fraud and identity authentication, (iv)marketing and data quality. Mr. Huang Jian once told reporters that Experian pays more attention to the two businesses of business creditreporting and decision analysis in China.

In terms of credit reporting data services, the company currently operates 23 consumer credit bureaus and 11 business credit reporting agencies around the world. In the field of decision analysis, Experian provides value-added services based on credit reporting data for customers, and also provides its own expert Consulting, analysis tools, software and solutions to complex problems and business decisions.

The reporter learned that Experian Credit Reporting (Beijing) Co., Ltd., which has a central bank’s credit reporting record, is mainly responsible for business credit reporting, and is looking for potential buyers in this business. In addition, Experian Information Technology (Beijing) Co., Ltd. is responsible for the decision analysis business, and the business of this line will be liquidated. Currently Experian is communicating with employees and customers.

Experian mainly conducts business credit reporting business in China, but does not carry out consumer credit reporting business. According to analysis by industry experts, the inability to develop consumer credit reporting is one of the reasons why Experian’s business in Great China has fallen short of expectations.

Regarding how Experian views the domestic consumer credit reporing market, Mr. Huang Jian once told reporters that in this regard, from the perspective of the global market, each country has a different model. Some are completely government-oriented consumer credit reporting markets, and some are relying entirely on market-driven, many countries have adopted the “government + market” two-wheel driven model. With the launch of Baihang Credit (https://www.baihangcredit.com), China is gradually leaning towards the “government + market” driven model. “This is indeed a market that requires strong government supervision. From the perspective of consumer credit reporting, we have no plans to develop consumer credit reporting businesses in China. However, if the consumer credit reporting market needs our services, we will also actively cooperate with governments and partners locally. After all, Experian’s consumer credit reporting business ranks first in the global market. If necessary, we are willing to bring valuable experience to the Chinese market.”Mr. Huang Jian once said.

In Dr. Xinhai Liu’s perspective, the entry of market-oriented consumer credit reporting agencies into the market may be beneficial to the entire credit reporting market, but it also faces a global challenge, that is, the unprecedented strict regulation of personal data. “Consumer credit reporting services in both Europe and the United States have already developed, and it may be able to cover the cost by responding to the strict regulations. However, when the domestic consumer credit reporting industry is not yet mature, market-oriented companies still need a learning process. The contradiction between regulatory data protection and data application requires a process of exploration and resolution.”

Dr. Xinhai Liu said that Experian’s withdrawal from the mainland China has little impact on the market at the micro level. However, Experian is an excellent brand worldwide. In the process of financial opening, we need world-class financial service companies to add vitality to the market. “Leaving the world’s largest consumer market, this decision is still worth pondering.” Dr. Xinhai Liu said.

As a result， three giants of consumer reporting business worldwide (Experian, Equifax and TransUnion) will not carry out any credit information business in Mainland China after April,2021, when Experian plans to leave Mainland China completely.

As a professional research institute, the Professional Committee of Credit Management(PCCM) from the China Mergers and Acquisitions Association(CMAA) will follow closely with Experian China. PCCM will provide any help for its later mergers and acquisition as necessary.

Chinese Reference：

http://m.eeo.com.cn/2020/1114/433665.shtml

http://finance.caixin.com/2020-11-11/101626402.html

Encryption of personal information collected for COVID-19 prevention advised

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By Liu Xin Source:Global Times Published: 2020/5/12

Many places in China have taken measures to deal with personal information leakage as some individuals’ information has been improperly acquired and experts warned that with the COVID-19 epidemic coming under control in China, personal information that has been collected for prevention work should have encryption to decrease the risk of information leakage.

Reports of individuals’ personal information being exposed or misused have appeared recently, which raised concerns over the security of personal information. For example, the public security authorities in Qiangdao (should that be Qingdao?), East China’s Shandong Province, released a notice on April 19, saying that more than 6,000 residents’ information, including their name, address, identity number and phone number had been exposed, the Xinhua Daily Telegraph reported.

In the early stage of fighting against the coronavirus, some places required individuals to register their information with residential communities, online applications or pharmacies, which increased the risk of misuse or leakage of the information, experts said.

Qin An, head of the Beijing-based Institute of China Cyberspace Strategy, told the Global Times that some places over-collected personal information after the outbreak of the coronavirus. The current issue is how to properly store and manage the information.

“Two situations should be avoided – information leakage and continuous collecting of residents’ information,” Qin said.

He noted that since China’s cryptography law has been implemented, all personal information should be stored after encryption to avoid disclosure.

The public security bureaus in many places in China have dealt with cases involving illegally collecting and disclosing personal information. On March 5, Chinese authorities, including the Ministry of Civil Affairs and the Cyberspace Administration of China, required residential communities to ask for residents’ permission before collecting information for prevention work.

Authorities in South China’s Guangdong have started supervision of online applications and set requirements for data and privacy protection for organizations that offer applications for prevention, the Xinhua Daily Telegraph reported.

China unveils first law on personal data protection

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By Cao Siqi and Chen Qingqing Source: Global Times Published: 2020/10/13

As home to the world’s most online users, China on Tuesday unveiled its highly anticipated draft law on personal data protection, a significant step to address the long-held problems of leaks and hacks.

The draft was submitted for first review at the ongoing session of the top legislature meeting on Tuesday. It clarifies the definition of sensitive private data, including race, ethnicity, religion, biometric data, medical and financial data, and personal trajectory.

It states that those who violate the law could face a fine of up to 50 million yuan ($7.4 million) or 5 percent of its past year’s turnover, which observers said will strike a heavy blow to organizations, enterprises and individuals who have constantly disturbed people’s lives by illegally collecting, using and trading personal information for profit.

Legal experts said the existing laws do not provide adequate protection for individuals because they do not impose significant punishment on companies engaged in breaches.

Key information infrastructure operators and entities that handle a substantial amount of personal information that need to provide personal information to overseas must undergo security assessment from Chinese authorities.

If overseas organizations or individuals are found to have damaged Chinese citizens’ rights to private data or involved in personal data activities that harm national security and public interests, they will be put into a blacklist by the Cyberspace Administration of China.

Wang Sixin, a media law professor at Communication University of China, believes that this specific clause targets overseas internet companies, especially in the US, given some popular social media platforms were found to leak users’ privacy.

In August 2019, Twitter fixed an issue on its advertising platform that resulted in the company sharing some users’ data with advertising partners without the users’ consent. Earlier the same year, Facebook’s database leaked the phone numbers of 419 million users.

The draft law has been long awaited and widely welcomed, as the big data industry has been rapidly growing in China, which played a vital role in helping fight the coronavirus epidemic, such as tracking down close contacts to confirmed patients through online tools, and monitoring personal trajectory to quickly identify suspected cases.

Similarly, based on the EU General Data Protection Regulation, which took effect on May 25, 2018 and replaced the Data Protection Directive, violations could result in a fine of up to €20 million, or 4 percent of the firm’s worldwide annual revenue from the preceding financial year. GDPR regulators have issued hundreds of fines to companies, including Google and Facebook, worth more than €114 million in the first 20 months of GDPR, according to its website.

Experts suggested Chinese law on personal information protection should also impose specific punishments on overseas organizations or individuals if they are found to leak Chinese citizens’ privacy. They warned that the enforcement of the personal information protection law should be cautious; otherwise, it may harm the development of new technologies, as personal data also has abundant social, economic and governance value.

Big Tech Credit of Ant Credit Pay Enters Credit Reporting System in July

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PCCM 2020-08-04

In July 2020, the issue of some users of Huabei （Ant Credit Pay）accessing the central bank’s credit reporting system(CRC, PBoC) triggered hot discussions.

Some users of “Huabei” are accessing the central bank’s credit reporting syetem in the form of service upgrades. The upgrade service requires agreement to the “Huabei Service Agreement” and the “Personal Credit Information Inquiry and Submit Authorization Letter”.

According to an expert’s estimation, the business scale of Ant Group’s micro-consumer credit is around 1.3 trillion RMB. Many netizens said that they want to stop Huabei , afraid of the potential negative effect of their credit records. Its seems that Alipay will face the loss of Huabei users. But on the other hand, Alipay began to actively arrange loans for small and medium businesses in March this year, and officially announced that Ant Group would go public on July 20.

It is worth noting that for a long time, Huabei has been regarded as a “payment tool” by some users. In fact, from the perspective of the “Huabei Service Agreement”, it is a consumer financial product, or “Huabei-Consumer credit”, other e-commerce platforms such as JD Baitiao, Suning Willful Payment and Vipshop are all products of the same nature.

Huabei is not the only platform that submits relevant information to the central bank’s credit reporting system. JD Baitiao, Suning Willful Payment, and Vipshop will also inquire and report personal credit information for credit payment products such as “consumption first, payment later”.

In July 2020, the Central Bank’s Investigation and Statistics Department issued the “Urgent Notice on the Implementation of Online Joint Consumer Loan Survey.” On July 17, 2020, the China Banking and Insurance Regulatory Commission (CBIRC) announced the Interim Measures for the Administration of Internet Loans of Commercial Banks. Both rules aim to strengthen the supervision of joint Internet loans between banks and financial technology companies.

Reference Link （in Chinese）

Official Websit of Ant Credit Pay

Development of South Korea’s Latest Consumer Credit Information Legislation in the Digital Economy

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PCCM 2020-07-30

The South Korea government approved the revisions to the enforcement decree of the “Credit Information Use and Protection Act ” at a cabinet meeting on July 28,2020，which marks the final legislative changes necessary for the promotion of a data-driven economy and digital new deal initiative.

KEY REVISIONS

I. ENSURING SAFETY IN DATA CONVERGENCE

Data convergence will be safely carried out by designated institutions specifically tasked with data convergence. Data specializing institutions shall provide pseudonymized and anonymized data to financial institutions.

Data specializing institutions are required to maintain an appropriate level of human resources and set up a risk management system and internal control mechanisms.

II. LOWERING ENTRY BARRIERS FOR NEW MYDATA & CREDIT BUREAU BUSINESSES

More fintech firms will be given opportunities to start their own credit bureau businesses as the revisions restrict the required number of data specialists to maximum 10 professionals even for business entities wishing to apply for multiple CB licenses.

In addition, new guidelines will be established to prohibit unfair practices by credit bureaus, such as discriminatory or preferential credit rating, etc.

III. REQUIRING MYDATA BUSINESSES TO SAFELY PROTECT PERSONAL FINANCIAL DATA AND STRENGTHENING DATA PRIVACY RIGHTS FOR CONSUMERS

New rules have been established to guarantee that MyData service providers are abiding by data privacy rights and data transfer rights of consumers.

IV. IMPROVING DATA PROTECTION IN FINANCIAL SECTOR

Financial companies will be required to inspect and report to the financial authority at least once every year the results of inspection for internal data management and protection status.

Further impact

The implementation order of this law will promote the emergence and development of new industries such as My data and non-financial credit reporting; and by promoting data collection, processing, and combination, create high-quality data-related job opportunities;

Through the creation of new non-financial credit reporting and self-employed credit reporting, data can be expanded and a dedicated credit rating system can be constructed to solve the disadvantages of those who lack financial transaction history and self-employed individuals (self-employed) in credit evaluation an increase the reach of finance.

The Personal Information Protection Law, the Credit Information Law, and the Information Communication Network Law are the three data laws revised in the future in South Korea, which will promote the use of big data and data integration, provide one-to-one financial services to consumers based on data, and accelerate innovative financial services Development.

PCCM Review

South Korea is a country with relatively developed credit reporting, with a market-oriented mechanism and a good legislative environment, which is worthy of reference for the construction of a new credit reporting system.

South Korea has actively promoted the construction of a credit system since 1980, and many laws will involve credit , and the “Credit Information Use and Protection Act” (abbreviated as “Credit Information Act”) enacted in 1995 can be regarded as The “constitution” in the field of credit reporting.

According to the needs of the digital economy era, South Korea has appropriately revised its credit reporting legislation to keep pace with the times. In a short period of less than 30 years, the “Credit Information Act” has updated many contents and several versions, and its updated contents accounted for a quarter of the entire law. And in recent years, with the rapid development of the big data industry and the tightening of global personal information protection, Korean personal credit reporting system has followed up quickly.

This legislative amendment addresses key issues: data protection and the promotion of innovation & development are simultaneously promoted. On the one hand, it strengthens information security and consumer privacy protection, and on the other hand, it reduces the barriers to entry of new credit reporting business.

The MyData industry in South Korea is an emerging industry in the digital economy. The South Korean government promotes the development of the industry through relevant legislation such as personal credit reporting. There is also an imaginative business space for China’s huge consumer market. The future progress is worthy of attention.

Background: Consumer credit reporting in South Korea

According to the evaluation of the International Finance Corporation (IFC), South Korea’s personal credit reporting industry level surpasses OECD countries in its breadth (coverage rate) and depth (technology, model), and ranks as the first level in the world with Britain, the United States, and Germany.

In the early development of the Korean credit reporting industry, the government led the development of the personal credit reporting (PCR) industry. By the beginning of 2000, the Private Credit Bureau (PCB) developed rapidly and began to dominate the entire Korean personal credit reporting market. By 2010, it entered the mature stage.

The personal credit reporting market in South Korea is mainly composed of three personal credit reporting agencies-NICE, KCB and SCI. Its supervisory agency is the Financial Supervision Institute (equivalent to a combination of China Banking and Insurance Regulatory Commission［CSRC］, and China Securities Regulatory Commission［CSRC］).

About the author

Liu Xinhai is the Executive Deputy Director/Researcher of the Credit Management Professional Committee(PCCM), CMAA, China.

An Guangyong is an expert member of the Credit Management Professional Committee (PCCM), CMAA, China. He has ever worked in one credit bureau of South Korean

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Two main credit bureaus in China sign a strategic cooperation agreement

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PCCM, 2020/7/22

On July 17, 2020, the Credit Reference Center (CRC)of the People’s Bank of China(PBOC) and Baixing Credit Co., Ltd. (Baixing Credit) formally signed a strategic cooperation agreement. Jianhua, Chen Secretary of the Party Committee of CRC, and Huanqi, Zhu Chairman of Baixing Credit, attended the signing ceremony. Zhenzhong, Wang deputy director of CRC, and Pengpeng, Liu vice president of Baixing Credit Information, signed the contract on behalf of both parties.

According to the agreement, the two institutes will actively carry out credit reporting strategy, business, and technical cooperation research under the premise of compliance with laws and regulations and guaranteeing information security, and effectively play the role of “government + market” to jointly promote the prosperity and development of my country’s credit reporting market.

In accordance with the design of the PBOC on China’s credit reporting market, the two institutions have achieved differentiated development, adhered to the principles of mutual benefit and gradual progress, and jointly explored innovations in cooperation mechanisms, enhanced the innovation capabilities of both institutes’ credit reporting services, and jointly created and maintained a fair market environment. At the same time, both parties will strictly implement the relevant provisions of the 《Regulations on the Management of Credit Reporting Industry》to effectively protect the rights and interests of information subjects (Especially Consumers).

PCCM Review： It’s a good news. The development of China’s credit reporting industry requires resource integration, cooperation and sharing.

About The Credit Reference Center（CRC）, the People’s Bank of China

CRC was established in March 2006 with the approval of the State Commission Office of Public Sectors Reform. As an independent credit information service institution under the People’s Bank of China (PBC), the Center’s mandate is to establish, operate and maintain the national centralized commercial and consumer credit reporting system.

About Baihang Credit

Baihang Credit Co., Ltd. is the first company in China that has obtained a consumer credit reporting business license. It is organized by National Internet Finance Association of China and eight market institutes, including Zhima Credit, Tencent Credit, Qianhai Credit, Kaola Credit, Pengyuan Credit, Zhongchengxin Credit, ZhongzhichengCredit Report, and Huadao Credit. The company was incorporated in Shenzhen on March 19, 2018 and settled in Futian, with a registered capital of 1 billion Yuan.

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CTOS，Malaysia， Acquires CIBI Information Inc. Philippines

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2020-07-20

UALA LUMPUR: CTOS, Malaysia’s leading credit reporting agency, has today announced its acquisition of CIBI Information Inc (CIBI), the Philippines’ first and most established credit reporting agency.

CTOS said the acquisition marked its first regional investment, and a critical first step in its expansion into Asean.

“CTOS has cemented its position as Malaysia’s leading credit reporting agency, with a broad suite of innovative products and services developed in Malaysia over our 30-year history.

“This acquisition is a first key step towards bringing our products, solutions and knowledge across Asean,” CTOS group chief executive officer Dennis Martin said in a statement today.

He said the deal was strategic, both in terms of the company and the market.

“While the fintech scene in the Philippines is active, credit bureau services are still at their infancy, creating a gap that needs to be filled as the country’s adult population of over 60 million embraces new financial products and services.”

There is significant room for growth, with CTOS projecting topline growth of between 20-30 per cent compounded annual growth rate at CIBI over the next five years.

CIBI president and CEO Marlo R. Cruz said the deal would allow it to benefit from CTOS’ resources, technology and vast experience to effectively expedite its goal of supporting the unbanked/underbanked, micro-SMES and the direct-to-consumer market segments in the Philippines.

In terms of talent and knowledge, Martin believes that the transfer will be mutually beneficial.

“CIBI is traditionally a business and people information provider, and they are also heavily involved in employment vetting, which is a sector that is new to us.

“As a local Filipino” company, they also have invaluable insights to their market that multinationals don’t,”

Brahmal Vasudevan, founder and CEO of private equity firm Creador, majority shareholder in CTOS, said its aim when investing in CTOS in 2014 was to make Malaysia a centre of excellence for credit reporting in Asean.

PCCM Review：

(1) The cross-border M&A of consumer credit reporting agencies occurred between emerging market countries, rather than the traditional mergers and acquisitions of European and American credit reporting agencies in emerging market countries.

(2) Mergers and acquisitions between institutions are relatively common in the field of consumer credit reporting. Through mergers and acquisitions, different resources are integrated to seize the market, and eventually the rapid development of personal credit reporting agencies is achieved.

(3) Mergers and acquisitions in China’s consumer credit reporting industry are relatively rare. In the future, with the further development of marketization and the opening up of foreign investment, there may be occurrences.

Resource Link from BIIA

Resource Link from NST Business

Asian Credit｜Equifax India Launches a New Microfinance Risk Score

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By India Education Diary Bureau Admin June 9, 2020

Mumbai: Equifax India, registered as Equifax Credit Information Services Private Limited (ECIS), today announced the launch of a new MFI Risk Score, which is the only credit score in the industry that will enable MFI lenders to evaluate the creditworthiness of borrowers in a more holistic manner.

“Microfinance has an important role in enabling access to credit to the needy in the financial inclusion program” said KM Nanaiah, Managing Director, Equifax Credit Information services Ltd. and Country Leader, Equifax India and MEA. “The MFI industry is facing new challenges due to Covid-19 and lockdown. Given this scenario, we have developed MFI risk score using past credit information of the customer such as tenure, sanction amount, balance along with the previous payment history on the loans availed. The score is an excellent predictor of delinquent behavior both on existing and new loans.”

Using local data and global analytics expertise, the Equifax MFI Risk Score has been built to meet the needs of our MFI members. Equifax MFI Risk Score predicts the likelihood of a consumer becoming seriously delinquent (60+ days past due) within 12 months of scoring. The score development involved segmenting the population into 5 segments and around 5000 variables. The score ranges from 300 to 900.

Over a decade of presence in India, ECIS has brought many innovations in data and analytics to the Indian lending space. It is now a full service credit bureau offering its services to all segments of the lending industry – Retail Banking, MFI and Commercial.

Original Link

Asian Credit｜Ant Credit Evaluation Co., Ltd. completed the filing of credit rating agencies

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Source: Hangzhou Central Sub-branch, the People’s Bank of China, published at 17:02:00 on 15 June 2020

According to the Interim Measures on the Administration of Credit Rating Industry, jointly promulgated on 26 November 2019 by the People’s Bank of China, the National Development and Reform Commission, the Ministry of Finance, and the China Securities Regulatory Commission, the Hangzhou Central Sub-branch of the People’s Bank of China completed its filing of Ant Credit Evaluation Co., Ltd. (the Unified Social Credit Code: 91330100MA2H31531M, the global Legal Entity Identifier: 300300X64VL1SV92GM50).

Please note: completion of filing is not regarded as recognition or guarantee of credit rating agencies’ rating quality, technical methods, risk management, or internal control compliance.

Hangzhou Center Sub-branch, the People’s Bank of China

15 June 2020

Background: Public information shows that Ant Evaluation was established on 24 March 2020 with a registered capital of RMB 50 million, and it is a wholly-owned subsidiary of the Ant Group.

According to Zhou Weilin, the general manager of Ant Evaluation, after completing the filing, Ant Evaluation will start from the credit market under the existing credit rating regulatory framework, focus on small and medium-sized enterprises, and promote the application of credit rating results in the credit market.

Reference Link

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