According to information released by the Hong Kong Monetary Authority the change to positive data sharing has benefited Hong Kong consumers:
- § Credit card receivables increased by 10% (Between the start of the positive data sharing in August 2003 and September 2005)
- § Rollover ratio of credit card receivables fell from 54% to 41%
- § Non-card unsecured credit extended by financial institutions increased from 38% from $29billion to $40billion from December 2003 to December 2005.
- § While interest saved by consumers is difficult to quantify, the experts however believe the benefits to consumers are likely to be substantial. A large amount of credit card rollovers has been substituted by non-card credit with significant interest rate differentials (6% – 10%).
- § As a result of a greater accuracy in risk prediction new players have entered the consumer credit market with consumers likely benefiting from the increased competition. www.biia.com member news section
