How can business credit agencies provide credit scoring service better?

Although the credit rating is not regulated in the credit investigation regulations, it does not prevent some business credit investigation agencies from providing credit scoring services. Because the relationship between credit score and basic credit is too close, if it is hard to separate it will cause trouble.

Since 2015, the “Personal credit report digital interpretation” product promoted by the credit information Center to some banks is a typical value-added credit information service product developed based on credit reports, in addition to credit reports. In fact, it is a foreign commercial credit bureau credit score, the market has a great demand, but the credit center so far dare not charge it alone. The credit information Center has also developed and launched a variety of value-added credit information products and services, such as enterprise related relationship inquiry, important information tips for public business, commercial bank credit risk management forum, credit information forum, etc., but they all lack a sustainable improvement mechanism, reflecting the reality of distorted institutional mechanisms and insufficient motivation.

Although there is no legal name for credit scores, the “digital interpretation of personal credit reports” product is still very popular among commercial bank users, although there is still much room for improvement in supporting services. However, if the credit score is a more market-oriented name, it will inevitably bring trouble to the central bank because the relationship between the credit information center and the People’s Bank is too close, after all, there is actually no central bank to provide credit scoring services to the market. On the other hand, due to the failure to open up to other professional institutions that do credit scoring models, the credit basic credit data collected by the credit information center is far from being fully utilized by the society and fails to play a greater role in social credit risk management.

What is the root of the problem? Is it because we have set up a distorted system for credit investigation, which is essentially a major provider of market service products (including basic credit investigation services)? Although the credit information center is charged financially, the system of public institutions determines that the degree of marketization of its services is very low. One of the reasons why the official chose the current system for the credit investigation center instead of the enterprise legal person system chosen by the early leaders of the People’s Bank of China is that some people intentionally or unintentionally passed on the wrong information about the international credit investigation service system pattern to the country, making many people mistakenly think that there is also a public credit investigation service system/system in the world and even in Western countries.  At least at this stage is not appropriate.