(Yicai Global) Sept. 22 -- The credit standing of Huabei users is to be included in the central bank’s credit records, a move that will affect their future borrowing should they have overdue loans with Chinese fintech giant Ant Group’s virtual credit card.
Users have been asked to sign an authorization giving their consent to the sharing of their personal borrowing track record with the central financial credit information database run by the People’s Bank of China, Securities Daily reported today. Those who refuse will not be able to continue to use Huabei, a popular means of post-purchase payment at online stores.
This is part of a major overhaul of the fintech sector after regulators moved in at the end of last year to curb the scope of operations of small loan e-lenders. Tencent Holdings’ Weilidai and JD.Com’s Baitiao have already completed the transfer of credit information to the central database.
Users’ credit records won’t be affected if they keep in good standing with Huabei, the Hangzhou-based micro lender said. Personal credit reports are an important reference for individuals who apply to banks for loans.
Editor: Kim Taylor