The Credit Reference Platform (CRP) commenced operation on 28 November 2022, and its launch was announced by the Hong Kong Association of Banks (HKAB), Hong Kong Association of Restricted License Banks and Deposit-taking Companies, and the Hong Kong S.A.R. Licensed Money Lenders Association.
The Hong Kong Monetary Authority (HKMA) has been working closely with industry associations to introduce more than one consumer credit reference agency (CRA) in Hong Kong through the CRP. This move aims to minimise the operational risk of having only one commercially run service provider in the market according to hkma.gov.hk. Also, according to the HKMA, the Multiple CRAs Model is an initiative in line with Hong Kong’s Fintech 2025 strategy.
There are three credit reference agencies (CRAs) shortlisted under the Multiple Credit Reference Agencies (MCRA), namely PingAn OneConnect Credit Reference Services Agency (HK), TransUnion, and Nova Credit Limited.
The MCRA Model dictates that all credit providers are required to link up to the CRP. This financial infrastructure was designed to support the transmission of consumer credit information in encrypted form between participating credit providers and credit reference agencies. In order to achieve this, the system will rely on technologies such as distributed ledger technology, API, and big data architecture.
CRAs are not permitted to transfer consumer credit data outside Hong Kong for storage and processing, as the centralised database of the CRP is stored locally. According to HKAB representatives cited by fintechnews.hk, the industry associations introduced the MCRA Model in a bid to support the development of fintech in Hong Kong and to ensure more secure consumer credit data services.
Fintech 2025 was unveiled by the Hong Kong Monetary Authority in June 2021, and it comprises a series of strategies that aim to drive the development of fintech in Hong Kong. The initiative aims to encourage the financial sector to adopt technology comprehensively by 2025, as well as to promote the provision of fair and efficient financial services.
The strategy includes five focus areas, one of which involves improving the existing data infrastructure and building new ones such as Commercial Data Interchange, digital corporate identity, and a DLT-based credit data-sharing platform that would facilitate consent-based data sharing.
The other four focus points involve promoting the adoption of fintech by Hong Kong banks, future-proofing Hong Kong for CBDCs, expanding the fintech-savvy workforce, and establishing a Fintech Cross-Agency Co-ordination Group.
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