Population and economy, technology, information subject, market, regulation and their interaction are considered to be the key to determine the future development of credit information market and commercial credit information market. The above four scenarios reveal whether these factors affecting the future of business credit checking services develop in different ways. While these scenarios represent only a few of the many plausible futures that could happen, a few useful suggestions can be summed up:
Moderate competition should be maintained
Moderate competition in credit investigation market and credit market is conducive to reducing the cost of information acquisition. However, excessive competition will seriously disturb the market order, resulting in consumers have to pay high costs to protect their privacy rights and interests.
Data sources should be appropriately expanded
Expanding data sources can help people who lack a mainstream credit history gain access to financing. However, excessive data collection and use may lead to a series of problems such as infringement of consumer rights and consumers’ refusal to share data.
Emerging technologies should give more consideration to the vulnerable groups of credit information
Big data and advanced data analysis technology help credit institutions to conduct scientific and reasonable risk pricing and provide consumers with better quality credit products. But some people with weak credit histories and low credit ratings still have high costs and fewer loan options. More attention should be paid to the application of more extensive data and more sophisticated analysis techniques in the vulnerable groups of credit information.
Attention should be paid to gaining the trust of the information subject
If people have a high level of trust in credit bureaus and credit institutions, the willingness to share data will be higher. To improve the trust of information subjects, we can adopt publicity and education, perfect supervision and guarantee individual right to know.
Technology development should focus on improving the transparency of credit decisions and strengthening data security
Technological progress plays a significant role in promoting innovation in the field of data collection, aggregation and analysis, improving the quality of credit decisions, and reducing the cost of credit information. However, if technology developments lead to a lack of transparency in credit decisions, or lag in data security and the prevention of data fraud, information subjects will lose trust in credit bureaus and credit institutions, thereby affecting their access to data and market demand for retail credit products.
Post time: May-28-2024