What is "Credit Data Smart"?

"Credit Data Smart" is developed by the Hong Kong Association of Banks (HKAB), The DTC Association (The Hong Kong Association of Restricted Licence Banks and Deposit-taking Companies) (DTCA), and the Hong Kong S.A.R. Licensed Money Lenders Association Limited (LMLA) (collectively, "Industry Associations"), with the support of the Hong Kong Monetary Authority (HKMA).

When a consumer applies for a mortgage, loan or other credit product or service (such as a credit card), a bank will (or a money lender may) seek a credit reference report about the consumer from a consumer credit reference agency (CRA). The CRA collects information about the consumer's past and present consumer credit data from various credit providers who have provided consumer credit to the consumer, and then provide this information to potential new credit providers to help them assess the consumer's creditworthiness.

"Credit Data Smart" is a new operating model aiming to provide choices for the provision of consumer credit reference service to credit providers with the objective of:

• enhancing the resilience of consumer credit reference service to credit providers and preventing a single point of failure in the industry
• enhancing the governance of consumer credit reference service providers and the protection of consumer credit data involved in the provision of consumer credit reference service
• strengthening the protection for consumers' interest in respect of consumer credit reference service
• promoting competition by introducing a level-playing field for credit reference agencies

A multiple credit reference agencies model is also adopted in a number of markets globally.

Please click here to visit the HKAB website for more information.

Introduction video