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China can adjust legal framework for credit scoring if needed

by Mike Robinson

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© Reuters. FILE PHOTO – The Chinese flag is flown at half-mast by the People’s Bank of China (PBOC) as China observes a National mourning in memory of those who have died from the coronavirus (COVID-19), during the Qingming Tomb-sweeping

SHANGHAI, (Reuters) – China’s central banking said that it would adjust the legal framework for financial credit-scoring if necessary, according to state media reports. This indicates authorities might modify guidelines for fintech companies regarding the type and amount of data they are allowed to collect.

Legal Daily reports that the People’s Bank of China (PBOC), in response to new concerns about credit data collection, will do research and adjust policies as necessary.

Saturday’s new regulations by the PBOC regarding data collection for credit scoring were implemented. The rules also defined who businesses would be affected. The PBOC also advised companies to obtain credit scoring licenses, and not to collect excessive user data.

Over the past years artificial intelligence, blockchain and cloud computing have developed quickly. This has led to growing concern about the potential impact on private persons of personal credit scoring and lack thereof.

As the credit-scoring sector expands, several delegates of China’s National People’s Congress have suggested legislation.

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