Engaging more than one Credit Reference Agency under Credit Data Smart

The Hong Kong Monetary Authority (HKMA) has set requirements for retail banks, including digital banks, to enhance operational resilience by engaging with more than one credit reference agency (CRA) under the Credit Data Smart (CDS) system. This requirement, effective from January 2025, aims to ensure banks can swiftly switch between CRAs in case of service disruptions, maintaining continuity in consumer credit services and risk management. Banks must establish agreements with multiple CRAs, conduct annual drills to ensure readiness, and complete necessary testing by the second quarter of 2025. Full implementation should be achieved by the third quarter of 2025, with extensions considered on a case-by-case basis.

Resources: https://www.hkma.gov.hk/media/eng/doc/key-information/guidelines-and-circular/2024/20241219e1.pdf