TransUnion Hong Kong extends credit insights data to SME lending services

TransUnion Hong Kong has extended its credit insights data to SME lending services, helping lenders provide better financial support for this important business segment which underpins Hong Kong’s economy.

By using SME credit reports coupled with individual reports and CreditVision scores held by business owners or shareholders which provide insights into consumer credit data, banks and lenders are now able to better assess the credit risk of potential SME customers and create a more holistic and comprehensive product portfolio. 

“Providing an additional source of data alongside wider SME underwriting data helps to more clearly quantify risk from delinquencies and write-offs. Our comprehensive credit information database contains individual data that supports the SME loan approval process, thereby driving the ease of doing business and promoting financial inclusion for all," said Jerry Ying, TransUnion APAC’s vice president, Innovative Solutions Group.

As the pandemic has accelerated the digital transformation of the financial services industry, TransUnion’s digital onboarding solutions, already adopted by virtual banks and money lenders in Hong Kong, will also soon be available for SME banking services. 

Since the effects of the pandemic begin to have a greater impact on the consumer credit market, some SMEs are facing cash flow difficulties. Traditionally, SME credit underwriting would analyse the company’s assets and annual returns, but this may not reflect the full picture of SMEs where the owners and key shareholders may also have taken personal loans elsewhere. For some start-ups and SMEs, the lack of information on their assets and annual returns can deter them from seeking financial loans.

“With vaccinations planned after the Lunar New Year, there is some optimism that the economy will start to gain momentum again. But it is how lenders and SMEs are able to respond to the shifting environment that will ultimately determine the shape and speed of the economic recovery. SME credit reports and CreditVision scores support this recovery by bringing financial opportunities to both SMEs and lenders," Ying added.


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