Banks likely to scramble for borrowers' records but profit gains will be modest
The number of inquiries from banks about the financial history of individual consumers is expected to surge with full release this month of positive credit data.
However, bankers doubt that the availability of the information will make an instant impact on the way they conduct lending business.
Alex Yuen kai-fai, managing director of TransUnion Information Services, said the bureau was anticipating a deluge of queries and upgrading its computer system.
'Many banks are anxious to get their hands on customers' past borrowing information,' said Mr Yuen, whose firm holds information on more than three million people and 14 million bank accounts in Hong Kong.
Two years ago banks were permitted limited access to consumer credit information, including credit limits on credit cards, account outstanding balances and repayment schedules. The information would be available to lenders only when new or existing customers applied for loans or credit cards.
Since the beginning of this month, banks have been permitted to access the data at any time. Observers said this would aid marketing by allowing easy identification of people with good credit records.
