Media365
The Hong Kong Monetary Authority (HKMA) is testing a new business credit-scoring system that can help small businesses obtain loans from lenders quickly and cheaply.
“We are conducting a proof of concept project to encourage commercial credit reference agency operatives to develop credit scores and benchmark support for corporations,” chief executive Eddie Yue Wai-man said at the Data Summit on Monday. “Digitalised and efficient data infrastructure is essential to support enterprises in responding flexibly to challenges.”
Initial findings from nine pilot banks taking part in the trial showed the new model could effectively streamline the loan application process and reduce borrowing costs for small and medium-sized businesses (SMEs), he added.
The trial is part of the Commercial Data Interchange (CDI) project, an electronic platform launched in 2022 to help SMEs get cheaper loans by sharing their operational data. The platform has facilitated more than 50,000 applications and reviews, with loan approvals totalling HK$41.9 billion (US$5.34 billion) as of March, based on HKMA data.
SMEs are the lifeblood of the economy, accounting for 98 per cent of all enterprises in the city, according to government data. Almost 40 per cent of them are engaged in import, export, wholesale and retail businesses.
