China can adjust legal framework for credit scoring if needed – PBOC

China mourns for coronavirus (COVID-19) victims on Qingming tomb sweeping festival
FILE PHOTO: The Chinese national flag flies at half-mast at the headquarters of the People's Bank of China, the central bank (PBOC), as China holds a national mourning for those who died of the coronavirus disease (COVID-19), on the Qingming tomb-sweeping festival in Beijing, China April 4, 2020. REUTERS/Carlos Garcia Rawlins

January 4, 2022

SHANGHAI (Reuters) – China’s central bank said it will adjust the legal framework around financial credit-scoring if needed, state media reported, an indication authorities may tweak guidelines for fintech firms on the amount and type of user data they can collect.

In view of new concerns around the collection of credit data, the People’s Bank of China (PBOC) will conduct research into the industry and make policy adjustments where needed, Legal Daily reported on Tuesday.

The PBOC on Saturday implemented new rules around what kinds of data can be collected for credit scoring and clarified what kind of businesses the rules would apply to. It also urged companies to apply for credit scoring licenses and to refrain from excessive collection of user data.

Artificial intelligence, blockchain, cloud computing and big data have been developed rapidly over the years, prompting growing concerns about how private individuals could be affected by personal credit-scoring and the lack of laws to protect them.

Several delegates from China’s National People’s Congress (NPC) have proposed legislation on credit-scoring management as the sector grows.

(Reporting by Zhang Yan and Ryan Woo; Editing by Sam Holmes)