What happened: More than 600 entities have been connected with Baihang Credit’s personal credit database, said Chen Yulu, deputy governor of People’s Bank of China (PBOC), at a press conference during the Two Sessions meeting on Sunday. The progress appears well-received; one analyst cited in the news article said Baihang’s database would help internet finance firms “improve social management efficiency.” Another analyst said establishing a credit system will “bring great growth prospects to the entities.”
Why it’s important: Baihang was established in early 2018 by the National Internet Finance Association in conjunction with eight other Chinese credit scoring companies such as Sesame Credit, Tencent Credit, and Kaola Credit. As China’s first privately funded personal credit platform, Baihang provides credit reporting services and feeds data from internet financial services and online lenders to the central bank to improve the accuracy of the credit scoring system. The platform is expected to provide fuller coverage for credit reports, addressing blind spots left by state-run credit scoring databases which only cover 300 million of the 800 million potential borrowers.