Ant Group to share consumer credit data with China's central bank as regulatory overhaul continues

GUANGZHOU, China — Ant Group will share credit data from its consumer lending business with China's central bank as part of an overhaul of the fintech giant.

Huabei is a consumer loan product under Ant Group. Data from that lending product will be fed into the financial credit information database held by the People's Bank of China (PBOC), Ant said in a statement Wednesday.

Information including date of account set up, amount in the credit line and status of repayment will be provided to the central bank. Users will need to authorize this. Specific information such as details about time of purchases or goods being bought will not be handed over to the PBOC.

Ant Group, which is controlled by billionaire Alibaba founder Jack Ma, had its blockbuster initial public offering suspended in November over regulatory concerns.

Ant's lending business worked on a model in which it matched up borrowers to lenders, such as banks, but the company did not underwrite those loans. Instead, banks bore most of the risk.

This worried regulators who believed companies like Ant were acting like financial institutions but not being regulated like them.

Chinese regulators ordered a restructuring of Ant Group. In June, the company was given the green light to operate a consumer finance business with outside shareholders. This business houses its Huabei and Jiebei loan products and is called Chongqing Ant Consumer Finance Co. Ant will have to partly underwrite more of these loans.

Ant Group is currently in the process of becoming a financial holding company which will be overseen by the PBOC and other regulators.

A logo of Ant Group is pictured at the headquarters of the company, an affiliate of Alibaba, in Hangzhou, Zhejiang province, China October 29, 2020.Aly Song | Reuters

The data-sharing requirements with the PBOC brings Ant Group in line with other financial institutions in the lending space which are required to do the same thing.

Ant Group said some users can already look up the Huabei-related records in their credit reports with the central bank.

The company looks to assuage fears that the sharing of users' credit data from Huabei could affect their future ability to get loans.

“A comprehensive and proper set of credit records will enable financial institutions to better understand users' creditworthiness and to better serve them,” Ant Group said in a statement.

In my view, this means the intent is to allow Ant to continue its business but under regulatory purview and rules.
Kevin Kwek
Bernstein

“Therefore, under general circumstances and with the normal usage of Huabei and timely repayments, the use of other financial services such as loan applications will not be impacted.”

Kevin Kwek, managing director and senior analyst at Bernstein, said the credit data-sharing agreement with the central bank clears “significant” regulatory uncertainty around Ant Group.

“Sharing of data of course erodes Ant's edge, but doing so allows them to obtain regulatory blessings, such as getting the consumer finance license,” Kwek told CNBC.

“In my view, this means the intent is to allow Ant to continue its business but under regulatory purview and rules, and if it helps the broader consumer credit bureau agenda. It is important to note that Ant will continue to be dominant as a very large distributor given its user base, even if it now has to share some data.”

Internet Explorer Channel Network
News Related

OTHER NEWS

Social Security benefits are getting biggest boost in 40 years. Here's why it can't always jump so much each year

Don Bayley | Vetta | Getty Images This week's announcement of the highest Social Security cost-of-living adjustment since 1982 was welcome news for retirees. It will help alleviate the financial ... Read more »

Social Security benefits are getting biggest boost in 40 years. Here's why that doesn't happen every year

Don Bayley | Vetta | Getty Images This week's announcement of the highest Social Security cost-of-living adjustment since 1982 was welcome news for retirees. It will help alleviate the financial ... Read more »

Fed's Barkin backs tapering plans and expresses concern about inflation

Richmond Federal Reserve President Thomas Barkin said Friday he's on board with reducing the amount of economic help the central bank is providing as concerns grow about inflation. With the ... Read more »

Michael Burry of ‘The Big Short' asked about shorting crypto days before bitcoin hit $60,000

Andrew Toth | FilmMagic | Getty Images “The Big Short” investor Michael Burry inquired about ways to bet against bitcoin just before the world's largest cryptocurrency hit a six-month high to ... Read more »

Two out of ten Norwegian companies had their corona compensation application rejected

Two out of ten companies had their compensation application rejected during the pandemic. Figures that P4 collected show that the Tax Administration and the Brønnøysund Register Center received 131,294 applications ... Read more »

16 million people 65 and older will be in the workforce by 2030. These are the best and worst states for them to work and live

RUNSTUDIO | The Image Bank | Getty Images The number of older workers in the labor force is expected to swell over the next decade. By 2030, there will be ... Read more »

How to know if actively managed exchange-traded funds are right for your portfolio

MoMo Productions | DigitalVision | Getty Images Exchange-traded funds are often associated with passive strategies. But money has also poured into the actively managed version of ETFs, as investors crave ... Read more »

Stocks making the biggest moves premarket: Moderna, Virgin Galactic, Truist and more

Check out the companies making headlines before the bell: Moderna (MRNA) – Moderna added 3.2% in premarket trading after rising 3.2% yesterday, following an FDA panel recommendation for a booster ... Read more »

Contactless payment rises TODAY but you can set a limit on your card - here's how

The contactless limit is one of very few policies introduced during the pandemic that the Government has kept in place. In early 2020, the increased £45 limit allowed people to ... Read more »

Earn 9pc returns with these little-known savings plans

Advertised returns of more than 9pc should be enough to raise the eyebrows of any saver, but a handful of little-known schemes could offer a safe route to solid profits. ... Read more »

Most investors would dump a stock after an accounting scandal

© Provided by This Is Money MailOnline logo Most investors would dump a stock after an accounting scandal, cyber hack or environmental disaster, new research shows. Financial corruption and human ... Read more »

KDB's W10tr investment in fossil fuels contradicts green pledge: lawmaker

The state-run Korea Development Bank headquarters in Seoul. (Yonhap)The state-run Korea Development Bank extended or guaranteed loans worth a combined 10.3 trillion won ($8.7 billion) for fossil fuel projects in ... Read more »

Fiscal chief voices concerns over US request to share chip info

Deputy Prime Minister and Finance Minister Hong Nam-ki (left) poses with US Treasury Secretary Janet Yellen in Washington on Thursday, Eastern time. (Yonhap)South Korea’s Finance Minister Hong Nam-ki voiced concerns ... Read more »

Central bank chief refutes rumors of government intervention in rate hike

Bank of Korea Gov. Lee Ju-yeol attends a parliamentary audit held at the National Assembly at the National Assembly in Seoul on Friday. (Yonhap)South Korea’s monetary policy chief on Friday ... Read more »

Inside the Government's bold plan to funnel pension funds into infrastructure

When the biggest names in global finance arrive in London next week for the Government’s investment summit, ministers will be focused on convincing the room full of influential attendees to ... Read more »

S. Korea's finance chief voices concerns over US info-sharing request for chipmakers

This photo, provided by the Ministry of Economy and Finance on Friday, shows South Korean Finance Minister Hong Nam-ki (L) shaking hands with US Treasury Secretary Janet Yellen ahead of ... Read more »

Auto exports dip by more than 20% in Sept. amid chip shortage

Electric car charging station in Seoul. (Yonhap)South Korea’s exports of automobiles fell more than 20 percent last month, ending eight months of on-year growth, amid the extended global supply shortage ... Read more »

S. Korea to resume discount coupon program to spur spending

Lee Eog-weon (Yonhap)South Korea plans to resume discount coupon programs aimed at boosting private spending as the country is preparing to move into a phase of “living with COVID-19” in ... Read more »

Here's how much 10 big banks have cut their China growth forecasts

Workers labor in a factory of bathing suits in Jinjiang in southeast China's Fujian province Tuesday, Sept. 28, 2021.Feature China | Barcroft Media | Getty Images BEIJING — Ahead of ... Read more »

Contactless card payments spend cap more than doubles to £100 today

© Provided by Daily Mail MailOnline logo Shoppers can now spend £100 with a tap of their debit or credit card as the contactless limit more than doubles today. But ... Read more »

Contactless limit rises to £100 today - but many shops could take weeks to implement it

Shoppers in the UK can now make payments of up to £100 with a single tap of their card. The contactless card payment limit has increased from £45 to £100, ... Read more »

Stock futures are flat after S&P has best day since March on strong earnings

U.S. stock index futures were little changed during overnight trading on Thursday, after the S&P 500 posted its best day since March on stronger-than-expected earnings. Futures contracts tied to the ... Read more »

Pension warning as Rishi Sunak fee change could mean Britons work five years longer

Pension saving is often considered one of the best ways for people to plan towards their retirement. Through formal savings and investment vehicles, Britons can build up compound interest returns ... Read more »

Almost TWO MILLION more working poor since Tories came to power, research shows

Nearly two million more working people are living in poverty since the Tories came to power in 2010, research reveals. A Labour study of Office for National Statistics data found ... Read more »

PhonePe revenue up 85%, losses down 44% in FY21

PhonePe, a digital payments platform backed by US-based retailer Walmart Inc and homegrown ecommerce entity Flipkart, has reported revenue from operations of Rs 690 crore in the previous financial year, ... Read more »

71% of retirement age investors worry rising inflation will negatively affect their savings, survey finds

Peter Cade | Getty Images Federal Reserve officials are worried that inflation could last longer than they had anticipated, according to minutes from a recent meeting released this week. Now, ... Read more »

PNB Housing Finance shelves share sale plan citing legal delays

PNB Housing Finance has shelved its proposed Rs 4000 crore preferential issue to private equity giant Carlyle Group and co investors including former HDFC Bank CEO Aditya Puri, General Atlantic ... Read more »

Apple has lost $229 billion in market cap since its September high — here's what's next

Apple shares bounced back Thursday, but losses since its record highs remain sharp. The stock has fallen 9% since that September peak, shedding roughly $229 billion in market cap. That's ... Read more »

How to set a contactless card spending cap to avoid the new £100 limit

The amount of money you can spend in a contactless transaction is set to more than double from Friday 15 October. © Mobile payment systems technically do not have contactless ... Read more »

Lloyds customer couldn't access his account for a week after bank declared him dead

John Hill first became concerned when he received an email from his utility provider to say his direct debit had been cancelled. He didn’t know what was going on but ... Read more »

More than a third of jobless Americans are still long-term unemployed — and without benefits

People receive information as they attend a job fair at SoFi Stadium on Sept. 9, 2021, in Inglewood, California. PATRICK T. FALLON | AFP | Getty Images More than a ... Read more »

‘Lloyds Bank wrongly declared me dead and shut down my accounts'

A Lloyds customer was locked out of his bank account for a week after the bank wrongly declared him dead in a case of mistaken identity. © Provided by The ... Read more »

Universal Credit: Robert Jenrick criticised for admitting the timing of the £20 uplift cut was ‘unfortunate'

Robert Jenrick, who was sacked from the Cabinet in the Prime Minister’s recent Cabinet reshuffle, has said the timing of the Universal Credit was “unfortunate” as it has coincided with ... Read more »

Borrowers have a year to get a second shot at public service loan forgiveness

RJ Sangosti/MediaNews Group/The Denver Post via Getty Images | Denver Post | Getty Images People pursuing public service loan forgiveness know how difficult the program can be to successfully navigate. ... Read more »

Here are 5 benefits of a health savings account that you may not know about

Brothers91 | E+ | Getty Images You may want to get to know about a health savings account a little better. HSAs are known for their triple tax advantage — ... Read more »

Ashmore assets hemorrhage $3.1bn as China woes rock the EM specialist

© Provided by This Is Money MailOnline logo Asset management firm Ashmore Group has seen its assets under management plummet by £3.1billion in just three months as large investors pulled ... Read more »

Op-ed: Congress needs to pass retirement provisions in the reconciliation bill

10'000 Hours | DigitalVision | Getty Images As Congress wrangles over many proposals within the Build Back Better reconciliation bill, one section holds the promise of addressing the anxiety millions ... Read more »

‘I'm waiting for a market crash before I buy American stocks'

Anoop Rattan, a 54-year-old from London who works in financial services, took control of his investments in 2014, switching £78,000 from workplace schemes into a self-invested personal pension. He has ... Read more »

Five charts that show why higher inflation will hurt your house price

A spike in inflation may feel like a distant problem but homeowners must take note. Rapidly rising prices will force the Bank of England to raise the Bank Rate from ... Read more »

Crypto could cause 2008-level meltdown, Bank of England official warns

A passageway near the Bank of England (BOE) in the City of London, U.K., on Thursday, March 18, 2021.Hollie Adams | Bloomberg | Getty Images The Bank of England's deputy ... Read more »