Global personal credit reference giant Experian plans to exit the Chinese mainland market and is talking with potential buyers about selling its China business. Its departure will leave a credibility vacuum in a chaotic but important sector, industry analysts say.
Analysts attributed Experian’s planned departure to Chinese regulators’ cautious attitude toward foreign players in the personal credit information market. In a disorderly competition with excessive collection and abuse of personal information by some local big data companies, foreign players that focus on compliance are at a disadvantage, they said.
Experian, with its Asia and Pacific business contributing about 8% of group profit, has been suffering huge losses and a shrinking market share in China, several industry participants said.
World News commented that China’s strong economic growth and booming consumer lending over the past few decades have generated large unmet demand for financial services, especially in the consumer and corporate credit sector.
With Experian’s exit, Huaxia D&B China, a joint venture between Huaxia Credit and U.S. commercial data provider Dun & Bradstreet Corp., will be the only foreign-backed licensed corporate credit service company in China.
The exit comes just two years after Experian Information Technology (Beijing) Co. Ltd. was approved by the PBOC to provide corporate credit services.