From the Beijing Times:
Recently, the Boston Consulting Group (BCG) in Beijing, China issued its first personal credit industry report. This report pointed out that China’s personal credit industry is beginning to appear, and that the market needs more forces to join together to promote economic development as well as a new social credit system. Currently the personal credit industry is facing three major bottlenecks. Once these bottlenecks are surpassed, the industry could potentially form a high degree of openness which would ultimately improve the credit information industry.
Reports indicate that China’s personal credit information industry has already experienced three types of stages: exploration, start-ups, and market deepening. China’s current system is overburdened and needs more market-oriented forces to join. Thus, the personal credit information industry has begun to develop in China.
The report notes, though, that China’s personal credit information industry is facing three major bottlenecks: 1. the lagging laws and regulations surrounding the industry, meaning that regulatory policy is still uncertain; 2. scattered data, meaning uneven quality, the lack of trading mechanisms, and a high cost of data collection; and 3. insufficient credit education and popularity. In this regard, BCG recommends that law makers establish rules and a base license and trust industry while also constructing integration sharing; optimizing a resource supply industry database.
Global BCG partner and managing director Zhang Yue said that in the coming three to five years, China’s personal credit industry will experience top-level design changes to accelerate the improvement of the supply of basic resources to optimize the industry. He aims to make the new technology to become the industry norm.
Taking into account the authority of the current Bank of China Credit Information Center as well as the prospective licensees in terms of business, technology, and data respective advantages, expanding credit coverage from the effective angle of view of the crowd, BCG believes that the future of Chinese Personal Credit industry will be more mixed in terms of the public-private ratio. In the end, big market players will shape the future of China’s personal credit industry, but an opening up of this type of industry could be groundbreaking for the international market.