Ping An OneConnect Bank (contract service)
Hang Seng Bank Limited (contract service)
Alternative credit scoring is a fintech approach to assess the creditworthiness of small businesses by banks. However, the alternative data of the small businesses for the credit assessment such as transactional data of sales and expenses usually reside in different service providers. To maximize the insights of creditworthiness of loan applicants, banks can combine the insights of creditworthiness from different service providers (the data partners of the banks) that hold the alternative data. The challenges faced by the banks to adopt this approach of alternative credit scoring include (1) the facilities to comply with the requirements of the privacy regulations in Hong Kong and to enforce the privacy control among the data partners and the banks, (2) the methodology to verify the usefulness of the adopted credit scoring models, and (3) the flexibility of the model design for allowing data partners to join or depart the partnership with the banks dynamically. This project aims to tackle these challenges by developing a software platform that supports the deployment of advanced model frameworks, protection based on different privacy enhancing technologies, functions for evaluating privacy control and performance of the models, and integration with the infrastructure of the HKMA for managing credit data shared by data partners and banks.