Author Archives: liu

Encryption of personal information collected for COVID-19 prevention advised

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

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

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

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. 



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. 


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. 


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


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

Resource Link

Two main credit bureaus in China sign a strategic cooperation agreement

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.

Resource Link

CTOS,Malaysia, Acquires CIBI Information Inc. Philippines


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

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

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

Relevant News Link

Alliance of Yangtze River Delta (Business) Credit Reporting Agencies Established

Published at 10:05 on 15 June 2020, by the Financial News (Chinese)

The Alliance of Yangtze River Delta Business Credit Reporting Agencies was established recently, signalling important progress achieved with the construction of credit reporting system in the Yangtze River Delta.

The Alliance of Yangtze River Delta Business Credit Reporting Agencies is under the leadership of the PBoC headquarter, its branches in three provinces (Anhui, Jiangsu and Zhejiang), as well as one municipal city (Shanghai) in the Yangtze river delta region.

Six relevant companies launched the Alliance, including Shanghai Shengteng Science and Technology Co., Ltd. (Qixinbao,, Jiangsu Provincial Joint Credit Reporting Co., Ltd. (, Suzhou Enterprise Credit Service Co. Ltd.(, Hangzhou Credit Reporting Co. Ltd.(No official website available), Zhejiang Huixin Science and Technology Co., Ltd.(, and Anhui Credit Reporting Co., Ltd. ( [Some of the six companies have strong connections with major state–owned enterprises (SOE)]

The Alliance vows to be market-led, open and sharing, equal and mutually beneficial, and self-disciplined. It aims to explore and promote cross-regional development, utilization and allocation of credit information. 

In order to ‘improve the cross-regional credit information sharing mechanism, and facilitate industry coordinated development’, the Alliance will optimize the credit environment in the Yangtze river delta region, alleviate information asymmetry, and enhance the level of financial services in the Yangtze river delta region. 

For original Chinese news,please visit

Credit Reference Center(CRC, PBoC) and the three commercial banks held a signing ceremony for the strategic cooperation of accounts receivable financing service platform

On June 5, 2020, Credit Reference Center(CRC,PBoC), Industrial and Commercial Bank of China(ICBC), Bank of Communications and China Everbright Bank held a strategic cooperation signing ceremony in Beijing for accounts receivable financing service platform.

Chen Yulu, Vice President of the People’s Bank of China, attended and delivered a speech. Wang Jingwu, Vice President of Industrial and Commercial Bank of China, Yin Jiuyong, Vice President of Bank of Communications, and Qu Liang, Vice President of China Everbright Bank, attended and introduced the experience.

This strategic cooperation is of great significance for better playing the role of a receivables financing service platform, improving the financing efficiency of small and medium-sized enterprises, alleviating the problem of financing difficulties in financing and promoting the stability of enterprises to secure employment.