The development of digital economy and the establishment of regulatory framework bring development opportunities
Under the background of the development of digital economy in our country, the credit investigation industry in our country has entered a new stage of marketization, legal and scientific development. Data is the basis of the competition of credit bureaus, and value-added service is the key to differentiation. The industrial positioning and differentiation advantages of mutual finance/fintech companies (data/technology/capital/focus on segments, etc.) are expected to be clearer.
A new stage of market-oriented, legalized and scientific development
China began to explore a modern credit information system in the 1990s, and has gone through the exploration of establishing a national unified credit information system (stage 1.0), exploring a market-oriented credit information system (stage 2.0), and has entered the 3.0 stage. At present, China’s credit investigation system and framework have been basically completed, and the five elements of the credit investigation industry supervision department and legal and regulatory system, information subject, information provider, credit investigation service provider and information user have been complete. Legalization, marketization and science and technology are the development direction of credit investigation industry in our country. The central bank’s credit investigation center and market-oriented credit investigation institutions are complementary, which is expected to increase the supply of effective credit investigation services. Internet financial platforms currently play multiple roles in the credit investigation system, and with the strengthening of supervision, the industrial positioning of the platform is expected to be clearer.
Credit reporting is becoming more important in mutual finance (Internet Finance (ITFIN)) business
The strengthening and rectification of credit investigation business supervision is an important part of the current round of Internet finance industry rectification that began in 2020. The promotion of the reform will help strengthen the penetrative supervision, put higher requirements on the Internet lending platforms and data providers that cooperate with banks, and the importance of licensed credit agencies in the mutual finance business will increase. After the boundary of credit information is clear, fintech companies can legally obtain information and use it for purposes other than credit investigation, and the risk of policy uncertainty is expected to decrease. The future industrial positioning of Internet lending platforms and data service providers may be clearer, and different platforms can compete differently according to their advantages in data, technology, capital, experience and insight in subdivided fields. The loan assistance business of large platforms with sufficient capital and compliance may be less affected by the rectification of credit investigation business.
Post time: Oct-31-2023