On Dec. 19, 2024, HKMA said banks must ensure they can quickly switch to another CRA in case of service disruptions, keeping uninterrupted services, risk management.
Scope of services covered should cover credit reports, facilitation of consumer credit data correction, other services essential for credit risk management, per SPM IC-6.
Banks must assess triggers, complete a switch-over within 24 hours of disruption.
Conduct annual drill to demonstrate technical, operational, risk management readiness; regular validation of data from multiple CRAs is required to ensure seamless migration.
Banks must establish clear policies, procedures, and monitoring mechanisms, with oversight from management, to support the operational resilience requirement.
Must enter agreements with more than one CRA by Jan. 2025, complete testing with these CRAs by end of Q2 2025; full implementation is expected by end of Q3 2025.
While this requirement applies to all retail banks, other authorized institutions and their subsidiaries involved in CDS are encouraged to implement similar measures.
On Nov. 17, HKMA welcomed the launch of pilot credit data smart.
HKMA welcomed the pilot launch of credit data smart, to introduce multiple consumer credit reference agencies (CRAs) to promote competition and improve service quality.
As well as reduce operational risks associated with having only one service provider.
Follows HKMA Dec. 2021 updated on credit reference platform progress, see #124659.
The Program
It is part of Fintech 2025 to enhance data infrastructure, drive fintech development.
HKMA looks forward to the selected 3 CRAs formally offer the public with secure and reliable consumer credit reference services upon the completion of the pilot program.
Apr. 2024 Commencement
On Apr. 18, 2024, HKMA welcomed the commencement on Apr. 26, 2024 of the credit data smart service, as announced by industry associations working closely with HKMA.
Restated aim to enhance market competition and service quality, reduce operational risk.
Nov. 2024 Migration Completed
On Nov. 25, 2024, HKMA, HKAB announced that migration of consumer credit reference services to credit data smart was completed on Nov. 24, 2024.
The parallel run of the old and new systems also concluded on the same day.
HKAB will continue to maintain close collaboration with CRAs, review and monitor the operations of credit data smart to ensure its ongoing success and effectiveness.
Dec. 2024 Multiple CRAs
On Dec. 19, 2024, HKMA said banks must ensure they can quickly switch to another CRA in case of service disruptions, keeping uninterrupted services, risk management.
Scope of services covered should cover credit reports, facilitation of consumer credit data correction, other services essential for credit risk management, per SPM IC-6.
Banks must assess triggers, complete a switch-over within 24 hours of disruption.
Conduct annual drill to demonstrate technical, operational, risk management readiness; regular validation of data from multiple CRAs is required to ensure seamless migration.
Banks must establish clear policies, procedures, and monitoring mechanisms, with oversight from management, to support the operational resilience requirement.
Must enter agreements with more than one CRA by Jan. 2025, complete testing with these CRAs by end of Q2 2025; full implementation is expected by end of Q3 2025.
While this requirement applies to all retail banks, other authorized institutions and their subsidiaries involved in CDS are encouraged to implement similar measures.
