Staff reporter
Nova Credit Limited, a Hong Kong-based credit reference agency, has decided to cease operations immediately and exit the Credit Data Smart program due to the depletion of funds after the scheme was rolled out three months ago.
Launched on April 26, the scheme is a new operational model aimed at introducing multiple credit reference agencies to promote competition for consumer credit reference services in Hong Kong.
Under the scheme, two agencies with mainland Chinese backgrounds, namely Nova Credit and PingAn OneConnect Credit Reference Services Agency (HK), were introduced, along with the US-based TransUnion, to provide credit services for the public. Previously, TransUnion had solely offered such services since the 1980s.
Nova, established in 2017 and picked as one of the scheme participants in late 2022, said it was a difficult decision but it will ensure a smooth exit.The company is not affiliated with US-headquartered credit service provider Nova Credit Inc.
The Hong Kong Monetary Authority said it was concerned about the matter and has requested the industry's associations to properly handle Nova's personal credit data and ensure the program operates normally.
The industry, which includes the Hong Kong Association of Banks, said it had required Nova to strictly comply with the requirements in the service agreement, including destroying all personal credit data downloaded from the scheme as soon as possible.
An independent third party has also been appointed to closely monitor relevant the work and the Office of the Privacy Commissioner for Personal Data will be kept informed.
The Hong Kong Association of Banks believes Nova's withdrawal will not affect the scheme's operations as the remaining two agencies are sufficient to provide services to banks while facilitating competition in the market.
