Ant to hand over his credit information to the Chinese government



Consumer lending service Ant Group Co. will pass all of its credit data to Chinese government officials for inclusion in a federal credit scoring system, according to a report in the Wall Street Journal on Wednesday (Sept. 22).

Huabei, Ant’s virtual credit card service, said on social media that it was “moving forward with its orderly inclusion in the financial credit information database held by the Credit Reference Center of the (Bank People’s Republic of China) “, referring to the Central Bank of China. (“Huabei” translates to “just spend” in Mandarin.)

“Inclusion of Huabei’s credit information in the PBOC’s credit reporting system will help improve the completeness of users’ credit information,” Huabei said in the post. “We recommend that users continue to use Huabei rationally, spend within their means, and use credit tools appropriately.”

Huabei will only allow users who allow sharing of their credit information with PBOC to use its service. The central bank’s database will keep account setup dates, line of credit amounts, repayment status and other information as part of Huabei’s monthly reports to PBOC, according to the WSJ report, but the company will not offer specific transaction information.

Ant’s customer data and its proprietary algorithms helped the company grow before and after its failed IPO in November, which collapsed amid concerns from Beijing about the company’s growth and lack of regulatory oversight.

Ant operates the Alipay payment and lifestyle app, which is used by over 1 billion people in China. It had partnered with commercial banks on loans to around 500 million people, but the loans had an outstanding balance of around $ 263 billion as of June 30, 2020, according to the WSJ report.

Ant recently established a consumer credit subsidiary within its credit division, Chongqing Ant Consumer Finance Co.

Related news: As Ant reconfigures its lending business, Chinese SMEs may see headwinds on credit

The Chinese government is forcing Alipay to create a separate app that would focus on Ant’s lending activities, in line with previous guidelines that the company’s lending activities be separated from Ant’s main operations and that the two operations of Ant. Business loan – related to traditional credit cards and small, unsecured loans – would be consolidated into a new company.



On: Eighty percent of consumers want to use non-traditional payment options like self-service, but only 35 percent were able to use them for their most recent purchases. Today’s Self-Service Shopping Journey, a PYMNTS and Toshiba Collaboration, analyzes more than 2,500 responses to find out how merchants can address availability and perception issues to meet demand for self-service kiosks.



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