China's central bank on Monday licensed another credit-scoring company to engage in personal credit reporting.
Qiantang Credit Co., Ltd. is the third company in the country that has been permitted to conduct the data-intensive business.
Qiantang
Credit, with registered capital of 1 billion yuan (about 139.3 million
U.S. dollars), will provide personal credit evaluation services to
financial institutions and individuals.
In
2018, China's first market-oriented personal credit-scoring firm,
Baihang Credit, was approved for operations, followed by Pudao Credit
which was greenlighted in December 2020.
Credit-scoring
companies on personal credit reporting analyze and judge an
individual's credit status based on non-borrowing information, so they
must have stable and abundant data resources and possess effective data
processing and handling technologies, analysts say.
China
started implementing regulations on credit reporting business
management in 2022. The regulations clarify the boundaries of personal
credit information and standardize the entire process of its collection,
processing, and provision.
Qiantang
Credit says it will carry out personal credit reporting services
strictly in accordance with the law, so that the data security and
privacy are well protected.
