Huabei of Ant Group integrated into Chinese credit assessment system

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Alibaba-backed Ant Group consumer credit payment platform Ant Check Later, also known as Huabei, has been included in China’s central bank’s credit scoring system, announced Wednesday the platform in a statement on its Weibo site.

The statement responds to a notice that users received earlier from the company to upgrade their Huabei service and sign a report authorization to the financial credit information database.

The information reported includes the date the account was opened, line of credit, usage status and repayment status, the Huabei team said in the statement.

The reports will be done monthly, without revealing consumption details such as what and when the credit is used, Huabei added.

China has placed a strong emphasis on building a social credit system since the State Council issued a directive in 2014 and established the world’s largest credit system in 2019. The system creates records credit for almost all people and businesses involved in nationwide credit business in a uniform format, used as a tool to prevent financial risks and ensure financial stability.

Concerns have piled up among users after the changes to the Huabei platform, leaving some of them worried about its impact on their bank loan applications.

Huabei said this will not happen if the platform is used under normal circumstances with proper use and on-time refunds by users, adding that the data indicates that more than 99% of its users have good registrations. of use.

In June, Ant Group obtained approval from the Banking and Insurance Regulatory Commission of China to establish a consumer credit company – Chongqing Ant Consumer Finance Co. Ltd. – to engage in consumer credit products through Huabei and Jiebei – a platform offering loan services to consumers.

This was part of Ant Group’s plans to rectify unfair competition in the payments industry, break the information monopoly, as highlighted at a joint regulatory meeting of Chinese market and finance regulators in April. .

Launched in April 2015, Huabei works as a virtual credit card allowing users to enjoy a post-payment shopping experience on Alibaba’s e-commerce platforms, but it has now also expanded to offline payment.


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