Fintech Data from the Alibaba Group will be Integrated into the Chinese Central Bank
Ant Group, the financial technology company of the Chinese group Alibaba, announced this Wednesday that the information relating to the credit of users, from its Huabei installment payment service, will be integrated into China’s central bank system.
Chinese media previously reported that many of the payment service users received a notice via the mobile application urging them to accept the new user terms, which include sharing their credit information with the People’s Bank of China (central bank) .
If the user rejects the new terms, he is banned from using the Huabei service.
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The new conditions are worrying many consumers, who fear that, from now on, their credit history in Huabei could harm them when borrowing from the traditional banking system.
Ant’s statement was intended to reassure users: “The normal use of Huabei and the maintenance of good consumption habits will not cause difficulties in applying for other loans.”
Bian Yongzu, a researcher at Tsinghua University, explained in statements to the economic news newspaper Jinrong Yixian that “a more complete, accurate and detailed credit system also favors the prevention of financial risks, as it is the country’s basic financial infrastructure.”
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The digital sector has flourished rapidly in China, in part due to a lack of regulation, or enforcement of existing regulations, something that has changed in recent months.
Beijing expanded its regulatory scrutiny in the technology sector and began to punish monopolistic practices and improper accumulation of data.
Last April, the Alibaba group was fined 18.2 billion yuan (2.375 million euros), the largest fine for monopolistic practices in the country’s history.
Fintech Data from the Alibaba Group will be Integrated into the Chinese Central Bank - /10
Information regarding users and their claims on Ant Group will be made available to the Chinese central bank. Failure to accept the new terms implies discontinuation of the service.