China to urge tech titans to share consumer loan data, sources say

As part of the proposal, Chinese regulators, including the country’s central bank, will be able to request for loan data from the internet companies then relay the information into credit agencies, the sources said. This would allow banks and other lenders to better evaluate risks and curb over-borrowing, the people added.

According to the report, Ant currently collects the data of over 1 billion people and 80 million merchants through its mobile and online payment platform Alipay.

While smaller in comparison, Tencent’s private lender WeBank has made over 460 million loan drawdowns worth over 3.7 trillion yuan (US$571.2 billion) as of the end of last year through its microloans unit Weilidai.

“Smaller banks are generally in a weaker position when they partner with fintech giants like Ant. They have heavily relied on Ant’s data to underwrite loans and manage risks,” a senior regulator told Reuters. “It’s crucial for lenders to have better access to more comprehensive and detailed credit data on borrowers.”

Ant and Tencent declined Reuters’ requests for comment, while JD and the People’s Bank of China did not immediately respond.

The development follows a string of moves made by the Chinese government to escalate scrutiny over the country’s tech titans. Late last year, China kicked off an investigation into Alibaba’s reported monopolistic practices and summoned Ant to a meeting over financial regulations.