Data collection: the Central Bank opened a “half-doors”

On January 5, said people’s Bank of China website, the people’s Bank has been issuing the notifications concerning personal credit operational readiness, ask Sesame eight agencies such as credit management limited preparations for personal credit business, preparing for a period of six months.
This was fields of credit March 15, 2013, China’s first regulations the regulations governing the credit industry began following the Central Bank informed the enterprise’s personal credit for the first time preparations, a number of experts interviewed think, undoubtedly a step forward in terms of credit market. Exploration of Chinese companies in the credit industry began in the early 90 ‘s, due to domestic credit industry there have been no special law, whose run has been in the grey area.
This means that future Chinese personal credit history will not just banks and Government agencies to record information will also include all the traces left on the Internet.
What is the point?
Credit refers to the collection, sorting, saving and processing the credit information of natural persons, legal persons and other organizations, and provide credit reporting, credit scoring, credit information and consulting service, help customers determine, manage credit risk and credit management activities. Credit is the core of the financial and credit system is the cornerstone of the modern financial system.
Wu Jing-Mei, Director of the research center of Renmin University of China credit management is one of the first Chinese scholar who studies the credit management, is also China’s first social credit system construction plan (2014-2020) leader of the expert team, the news made her a vibration from the Central Bank. She tells NetEase science and technology, the Central Bank‘s action is of great strategic significance.
She pointed out: “first of all, this proves that the regulator and open attitude. “Previously, people’s Bank of China have expressed openness to the credit market, such as September 2, 2014, 2nd Pan gongsheng, Vice President of the people’s Bank of China said,” the development of China’s credit market is an important strategy for development of China’s credit system, my country encourages all kinds of capital, including private capital entering the credit industry, large companies open up the credit market, according to law and promoting credit markets opening up. “However, the market has had criticism and complaints, think the Central Bank system virtually monopolized China’s credit market. Thus, “this action is proved. It is very strong evidence that the Central Bank‘s usual approach, and truly open markets, market stability is a positive development in the future. “Wu Jing-Mei said.
She further stated that: “the second, the Central Bank‘s action is not only open, or innovation. “She explained:” the credit system now open to Internet companies, Internet companies like Ali, Tencent’s strength lies in e-commerce and social networking, these companies will be open everyday social and e-commerce data, subsequent credit from financial expand into e-commerce and social networking, credit information and credit market has expanded in scope. I boldly predicted that China would soon leader in online credit reporting. United States credit system is the most advanced in the world. In the United States, with large credit reporting agencies a lot of data, but with support from regulators, social networking and e-commerce and other Internet giants are doing in the field of credit reporting, has not previously been in the world. ”
This overhaul of traditional credit?
In fact, this is not the first time China tries to credit bureaus market.
First Credit Bureau in China “by the China credit information” was born in 1932, and since then starting, credit history, China has more than 80 years, but the development of Chinese credit information industry really are starting from the reform and opening up. Market exploration from the early 90 ‘s of the last century has begun, but the impact of credit market has been small.
According to Wu Jing-Mei, and up to now, Chinese credit system if the organisation’s classification can be divided into three systems: financial credit systems, social credit, commercial credit reporting system.
Financial and credit system, is led by the Finance Department for construction. At present, the rules of the credit information center for financial credit information basic database is the core system of financial credit data, starting from 2006 the national network run, the data source is the country’s commercial banks to report to the Central Bank‘s credit information.
Social credit reporting system, also known as administrative credit system, which is a function of local governments and their management-led construction, collecting information for industry and commerce, taxation, customs departments, such as the operation of accumulated data.
Business credit system, is constituted by independent private institutions of the Government and in accordance with market operation. Late 80 early 90 ‘s of the last century has been private credit bureaus was born. The received notice from Central Bank–one of the 8 institutions Peng Yuan credit limited, their personal credit system had been up and running since 2002.
Among these three types of credit information system, which includes not only the credit information of enterprises, also containing personal credit information. Wu Jing-Mei estimates that business credit system, currently engaged in enterprise credit business has about 2000, probably has dozens of enterprises engaged in personal credit. Engaged in personal credit enterprises is relatively small, is because personal credit cost is high, demand is relatively small, and personal credit also covers issues such as protection of the right to personal privacy.
Wu Jing sister told NetEase technology, this is alone notification eight home institutions do personal levy letter of prepared work, is because levy letter industry management regulations in the provides, established operating enterprise levy letter business of levy letter institutions, needed to located of State levy letter industry supervision management sector sent institutions handle record, established operating personal levy letter business of levy letter institutions, is must has State levy letter industry supervision management sector issued of personal levy letter business operating license. “The credit as long as the record is OK, personal credit information will also need to obtain a licence. “She said.
Wu Jing-Mei to NetEase science and technology explained: “commercial credit system influence is weaker in the past, one of the key reasons is that private institutions are not independent, stable source of data, data had been used to dig the two systems, commercial credit’s work is mainly in the data integration and analysis. ”
Future Internet companies involved are likely to change the situation. Wu Jing-mei points out that Ali, Tencent, a kind of Internet company itself generates data, and unlike traditional credit reporting system to collect financial data, Internet companies can collect information such as e-commerce, social networking, data sources, can be analyzed from the perspective of more credit.
Wu Jing-Mei has made in October last year, dedicated to the author of the Vision 2015: net credit of the first year of development, she wrote in the article: “all the data credits online, online credit is a full ‘ big data ‘ concepts. Internet references to massive data depicting credit track, describing the comprehensive credit, mainly credit, main purpose is to determine the credibility, social links, grant opportunities and predict credit trading risk and solvency. All credit, credit is the capital. Online credit content, techniques, data, features and analysis assessments, assessment models, the main contents and main conclusions will develop even radically changed. “At the same time, she declared:” network is the traditional credit business upgrade, is a thorough reform of the traditional credit. ”
The other side: central banks only open half door not too radical
But, said one senior industry technology, the “data collection” this matter should not be too aggressive.
He warned that banks notify 8 institutions prepare for personal credit, not issuing consumer credit licence. “The Bank gives 6 months ‘ preparation time, after these bodies access to personal credit licence depends on readiness. Now only open ‘ half door. ‘ ” He emphasized.
The industry believes that now, “data collection”, the propaganda effect than they can play a practical role, domestic credit is still in the very early stages of big data. He pointed out that: one, now network platform Shang accumulated of data although more, but “broken”, has value of does not more; second, currently can on data for in-depth understanding, and concurrent existing value of information of data analysis talent does not more, according to he understanding, master high data analysis technology of main is from Europe back of some returnees talent); its three, using big data for credit assessment, currently only on specific crowd, and specific service effective, like on young for small consumption loan.
He told technology abroad, particularly the United States large credit research at present compared to the leading. To do a large data collection, first of all to collect data. Traditional credit reporting system, its data source is single, but these systems record all core financial data on individuals and businesses, such as credit, insurance, taxes, and so on, are “real money” with personalities credit correlation is quite strong. Foreign credit data and combine traditional credit reporting data and Internet data, correlation analysis. Many credit institutions abroad, so that after a certain size, financial institutions can protect the privacy of information and security information allowing them to use United States doing better at this point.
In addition, the commercial credit markets to real it still takes time, and it development. Wu Jing-Mei said China’s current business credit needs are not really released, commercial credit demand mainly in the developed regions, such as Beijing, Shanghai, Shenzhen and other cities, third-tier cities of commercial credit demand was weak.
She tells NetEase technology, online demand for credit information has been fully and clearly, but most of the commercial credit line requirements have not developed. For example in the United States, many supermarkets, gas stations can send credit card credit is closely related to people’s daily lives, domestic and commercial credit markets has not yet been formed.
Meanwhile, Central University of finance and banking of China Guo tianyong, Director of the Research Center also pointed out in an interview with NetEase technology, opening personal credit market, there are some legal issues have not been fully resolved. For example, who the hell is credit information, the range to which this information can be transferred, sold, your personal information and privacy to differentiate, currently there is no clear legal provisions.
In 2013, the Chinese credit information industry development report issued by the Central Bank (2003-2013), devotes a whole paragraph summarizes the contents of this issue:
Development and regulation of the industry is always a contradiction. In reality, often “one dead, one on the chaos” phenomenon. Credit industry has its own characteristics, the main credit bureaus credit information business is the acquisition, processing, sorting, and external service delivery. To meet the needs of information users, credit bureaus tend to want to gather and provide information that is more abundant. Although it can quickly grow your business, but easily against subjects of information rights, causing irregularities. And for regulators, and often there is a tendency towards excessive regulation to avoid, this will affect the vitality and impetus to the development of the industry as a whole, how to make the development and regulation of the credit industry and to better deal with the relationship between the two has become major issues facing regulators.
PS: first received notice from Central Bank, preparations for the personal credit of eight basic circumstances: (source: official website information, comprehensive media coverage)
Sesame credit management limited: Ali ants clothing brand, owned by Kim, has not yet been formally launched, nor released any products. According to Ali’s official introduction to the media before, “credit Sesame” primarily by large data techniques to reflect the individual’s credit status through, for example, owned by Ali Taobao, Alipay, cats, shopping and financial platform to reflect a person’s assets, credit conditions, “‘ Sesame credit ‘ is intended primarily for personal business. However, while Sesame credit not yet online, but Ali’s own practice of accumulating data for credit assessment on the platform has been started since 2002.
Tencent credit limited: under the Tencent group, credit business by Tencent tenpay team in advance and be responsible for. Services consists of two blocks, one financial institution, through the provision of credit services to help reduce the risk of the Internet, followed by ordinary users of services, with a convenient way to help them build credit history, credit record can, in turn, help them get more financial services. On the construction of credit system, mainly using Tencent’s main big data over the Internet using social network information, such as online, possession, consumption, social situations, to build up a credit report information based on the Internet.
Before the Shenzhen maritime Credit Corporation Centre: established on June 17, 2014, according to previously reported by the media, is a subsidiary of ping an group company. As a licence-wide financial companies, ping an group consists of the insurance, banking, trust, investment and other business lines, which has accumulated a large amount of data. Lu Jin peace group is the largest network of P2P lending platform.
Peng Yuan credit co: is one of the earliest commercial credit bureaus in China, whose earliest construction “of Shenzhen Municipality on individual credit information system” run starting from August 2002, and currently provides personal and business credit reporting service covering the whole country.
Honesty and credit in limited: formerly known as credit and China Chengxin credit management accounts, service provider Division, officially registered on March 23, 2005 at the Beijing Municipal industry and Commerce Bureau, at present China Chengxin credit management limited, a wholly owned subsidiary. China Chengxin credit management limited was founded in 1992, is China’s first national credit ratings Securities Advisory and information services, credit, financial services, market research services-stock non-bank financial institutions.
CIIC wanted limited: private third-party credit reporting company, was founded in September 2013, initiated by the former Cheng Xitai, Chairman of huatai securities. Official website shows, the firm’s founder and team to join the Chinese credit industry ten years ago.
Lucia Lacarra credit management limited: currently being prepared, and its major shareholder is legend Lacarra network technology co., Ltd. Lucia Lacarra group is the first batch of payments business license of the Central Bank issued the third party payment companies. According to Lacarra website data, Lacarra today with more than 80 million users to date, cumulative user services for more than 800 million people, operating more than 500,000 businesses in more than 300 cities nationwide, covering more than 80% communities, monthly transaction volume exceeded 100 billion yuan. Lacarra as well as industry, agriculture, and China UnionPay, Jian, in five rows of hundreds of financial institutions, established a strategic and cooperative partnership, the nation’s major credit card users average about 15% by Lucia Lacarra platform repayment, some banks even more than 40%.
Beijing Hua road credit Ltd: established in November 2013, the first phase registered capital of 50 million Yuan, aims to develop the consumer credit business. Jie, Beijing create a constant height, clear silver triple control, new Austrian capital Beijing Road credit Ltd, 30%, 40%, and 15% shares. Inchcape AG was founded in 1998, is a service company in China’s financial information industry, primarily for banks to provide payment and operation of hardware and software products and services in the field of risk prevention and control. Company’s products and services have been used in more than more than 300 domestic commercial banks or branches of more than 60,000 business outlets. 2010 gem listed on Shenzhen Stock Exchange. Qing control of relying on triple wudaokou financial Institute of Tsinghua University, focusing primarily on third-party payment platform, P2P microfinance companies, all the financing platforms, platform for data mining companies, financial services, private banking and other new investment in the financial sector, and financial management consulting services in the field of the Internet. New Austrian capital is the new group’s platform companies engaged in private equity and investment management, owned by ENN among the top 500 Chinese enterprises No. 240 (2013), operating in China a total of 134 gas project (City) covers the urban population of more than 61 million people, owns 9.2 million domestic households, business users more than 38,900. Chuangheng peak is the influential financial investment group.