Hong Kong central bank welcomes complete migration to Credit Data Smart

Banks and lenders now operate under a multiple credit reference agencies model.

The Hong Kong Monetary Authority welcomed the announcement that local banks, deposit-taking, and lending institutions have completed migration of consumer credit reference services to Credit Data Smart.

“The completion of migration of consumer credit reference services to Credit Data Smart marks a milestone in the consumer credit reference services market in Hong Kong,” the central bank said in a statement posted on its website.

On 25 November 2024, the Hong Kong Association of Banks (HKAB), the Hong Kong Association of Restricted Licence Banks and Deposit-Taking Companies and the Hong Kong SAR Money Lenders Association announced that they’ve completed migration of consumer credits reference services to Credit Data Smart.

Credit Data Smart operates under a multiple credit reference agencies model, with the goal of introducing market competition to mitigate operational risks.

In a statement, the HKMA thanked the industry associations, operators, consumer CRAs and other stakeholders for the implementation of Credit Data Smart.

“The HKMA has been working closely with the Industry Associations to introduce more than one consumer credit reference agency (CRA) in Hong Kong, with a view to promoting the market competition of consumer credit reference services in Hong Kong, enhancing the service quality of consumer CRAs and reducing the operational risk of having only one commercially run service provider in the market, particularly the risk of single point of failure,” the statement read.

Credit Data Smart has reportedly been operating smoothly since commencing service on 26 April 2024.

The industry associations said that they will continue to maintain close collaboration with CRAs. They also promised to continue to review and monitor the operations of “Credit Data Smart” to ensure its ongoing effectiveness.