The People’s Bank of China’s Credit Reference Center has announced that a long-anticipated overhaul to China’s personal financial credit reporting system is tentatively scheduled to come online January 20, though some features may be delayed until May.
The overhaul is intended to:
- Close existing credit reporting loopholes that leave the door open for scams and credit fraud (more details on those loopholes here)
- Provide lenders with more information on borrowers, which can help assess lending risk even in cases where borrowers have little trackable financial credit history
To meet the latter need, these second-generation credit reports are expected to incorporate some core social credit system data sets, including:
- Civil and criminal case information
- Administrative punishments (which might include being blacklisted by a state agency)
- Professional qualifications
- Awards & honors
Why it matters: The incorporation of social credit data in financial reporting applications is a significant step towards further embedding the social credit system in the context of daily life.