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）