Xinhua Decoding | With the launch of a new credit information platform, what benefits can it bring to small and micro enterprises?

BEIJING, Oct. 25 (Xinhua) — Question: With the launch of the new credit information platform, what benefits can it bring to small, medium, and micro enterprises?

　　Xinhua News Agency reporters Wu Yu and Ren Jun

　　At present, a large number of small, medium, and micro enterprises in China still have limited credit histories, making it difficult for them to obtain financing. How can we effectively address the resulting financing challenges?

　　On October 25, the National Credit Information Sharing Platform for SMEs and Micro‑enterprises was launched in trial operation. Developed by the Credit Reference Center of the People’s Bank of China, the new platform establishes dedicated data accounts for small, medium, and micro enterprises, providing a brand‑new “credit report” to support corporate lending.

　　 Why was the cash flow information platform launched?

　　For a long time, small, medium, and micro enterprises have lacked continuous, stable, high-quality credit information, which has been a major constraint on financial institutions’ ability to deliver premium financial services.

　　At present, many small and micro enterprises lack credit histories and are referred to as “credit blanks.” However, these firms do maintain bank accounts and transaction records; it is simply that much of their financial‑flow‑related credit information remains underexplored and underutilized.

　　Cash flow credit information is one of the key credit data sources for small, medium, and micro enterprises, providing a dynamic, full‑life‑cycle view of their operational performance, income and expenditure, debt‑repayment capacity, and compliance with contractual obligations. Many countries around the world are actively monitoring, exploring, and promoting the sharing and utilization of such information to help address information asymmetry in SME financing.

　　To this end, the People’s Bank of China has developed and launched a funds‑flow information platform. What services does this platform offer?

　　The reporter learned that the funds‑flow information platform primarily serves small, medium, and micro enterprises as well as individual business households. Enterprises can authorize banks to access their account‑level funds‑flow credit information through the platform, and they can also view their own funds‑flow credit data to generate a corresponding funds‑flow credit report.

　 　What does this report contain?

　　The credit information report on corporate fund flows, generated upon request by small, medium, and micro enterprises, provides details on the enterprise’s account income and expenditures, cash deposits and withdrawals, and transactional relationships with various types of counterparties. Enterprises need not worry about the disclosure of commercially sensitive information, as the report presents monthly and quarterly trends rather than individual transaction‑by‑transaction data.

　　According to a responsible official at the Credit Reference Center of the People’s Bank of China, this report enables financial institutions to obtain customers’ cash‑flow and credit information in a convenient and efficient manner, allowing them to analyze clients’ operational status, income and expenditure patterns, debt‑repayment capacity, and履约 behavior, thereby further enriching corporate credit profiles.

　　“For example, by analyzing changes in fund flows with public institutions such as power utilities, social security agencies, and telecommunications providers, financial institutions can more clearly assess whether a company’s operations are stable and whether its scale is expanding,” said the official. This report not only provides credit enhancement to support enterprises’ loan applications but also helps financial institutions establish a long-term mechanism that encourages them to “dare to lend, be willing to lend, be able to lend, and know how to lend,” thereby channeling more financial resources to support the development of small, medium, and micro enterprises.

　 　How should this report be used?

　　Small, medium, and micro enterprises may log in to the National Platform for Sharing Financial‑Flow Credit Information (https://www.cfcii.org.cn/), undergo rigorous identity verification, and access their own data accounts. They can then authorize banks to query their financial‑flow credit information reports, thereby supporting banks in conducting credit assessments.

　　Data travels more, while businesses travel less. Built on the open‑banking model, the funds‑flow information platform enables authorized enterprises to share data seamlessly between their account‑opening bank and their lending bank, thereby enhancing their creditworthiness and helping them secure tangible, real‑money credit support.

　　The reporter learned that the platform itself neither collects nor stores any credit information; rather, it serves as a “highway” for data flow, facilitating the circulation and application of corporate information and helping enterprises take control of their own data.

　　 How does the new platform ensure information security and protect the rights and interests of data subjects?

　　An official from the Credit Reference Center of the People’s Bank of China stated that the funds‑flow information platform has implemented a range of measures to ensure information security. First, it employs rigorous identity verification to guarantee the reliability and traceability of both corporate entities and participating institutions. Second, it adheres to the principle of “no use, no export; no authorization, no access,” and does not store funds‑flow credit information on the platform. Third, it shares information in accordance with the principle of least privilege, allowing enterprises to independently choose which one or more accounts’ funds‑flow credit data to make available. Fourth, it strengthens the development of both software and hardware infrastructure to ensure the system operates securely and stably.

　　 How has the new platform performed since its launch?

　　The reporter learned that, early on the 25th, the funds‑flow information platform had begun providing funds‑flow‑based credit information services to small, medium, and micro enterprises as well as to participating pilot financial institutions. The first batch of 31 financial institutions—selected for their high transaction volumes, strong technological capabilities, and regional representativeness—has joined the platform’s trial launch, which can cover more than 50 million accounts held by small, medium, and micro enterprises. As of 5:00 p.m. that day, the platform had already recorded over 50,000 visits.

　　According to reports, the People’s Bank of China will, in the next phase, encourage financial institutions to connect to the funds‑flow information platform, gradually achieving full nationwide coverage of shared credit information on funds flows.

[Editor-in-charge: Wang Di]

Source: Xinhua Net