Money lending needs a single regulator

It is true that a lot of Hong Kong lenders are aggressive in their sales activities and seem to enjoy a high interest rate margin which is regulated by up to 60 per cent cap for now. At the same time, many lenders still rely on simple score cards or human judgement for credit decisions which tend to include unnecessary biases. This can cause to generate a gap between lenders’ view and borrowers’ potential in terms of credit risk prediction.

From the lenders point of view, it is likely for them to set the interest higher as the borrower’s risk is difficult to predict accurately due to lack of technologies to analyze the available data.

The key to solve this situation is for lenders to fully utilize the data and make credit decisions to be machine learning-driven. This will allow to eliminate unnecessary biases and visualize credit risks. As a result, the risk prediction of the potential borrowers will become more accurate and that will lead to provide appropriate loan products.

Our technologies are specialized in finding the hidden patterns in data and building high-performing prediction models, they will allow lenders’ credit underwriting process and decisions to improve. We believe our AI credit engine can contribute to grow more robust lending environment.

In the articles below, it states that ‘the situation is aggravated by technology’, we think the situation can be improved by our technologies.

See the linked URL for details:
https://www.scmp.com/comment/opinion/article/3031781/money-lending-needs-single-regulator

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