Ant Group’s microcredit service Huabei begins sharing data with China’s central bank

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FILE PHOTO: A man walks past an Ant Group logo at the World Artificial Intelligence Conference (WAIC) in Shanghai, China July 8, 2021. REUTERS / Yilei Sun

SHANGHAI (Reuters) – Chinese group Ant has started sending its consumer credit data to a database run by China’s central bank, a key move for the company and regulators as Beijing tightens its grip on the financial technology sector.

Ant’s virtual credit card service Huabei said in a post on his official Twitter-like Weibo account on Wednesday that it was being integrated into the Chinese central bank’s credit reporting system. .

Ant, the financial arm of e-commerce giant Alibaba Group, saw its $ 37 billion IPO derailed by regulators last year and has since undergone a Beijing-led restructuring to transform into a financial holding company and cut back on some of its coasting activities.

For years, major Chinese internet platforms have tended to resist sharing their data, a crucial asset that helps them run their operations, manage risk, and attract new customers.

Huabei said in its statement that after obtaining prior permission from users, it will release information such as their account creation date, credit lines, and system usage. Users’ personal consumption details will not be shared, he added.

Huabei and another Ant credit affiliate, short-term consumer loan provider Jiebei, were used by around 500 million people in the 12 months leading up to June 30, 2020, Ant said in its introductory prospectus. in stock exchange.

Reporting by Brenda Goh; Editing by Mark Potter

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