Promote the upgrading of credit consumption and explore the establishment of a unified personal credit rating system in the Yangtze River Delta region
At the end of last year, the Central Economic Work Conference clearly stated that restoring and expanding consumption should be given priority. On July 24th, the Political Bureau of the Central Committee of the Communist Party of China held a meeting to analyze and study the current economic situation and work, emphasizing once again the need to actively expand domestic demand and play the fundamental role of consumption in driving economic growth.
Credit is the passport of modern society. The trend of social development is that trustworthy people have unobstructed access, while dishonest people find it difficult to move forward. This is also true in the field of consumption. The Opinion on Promoting the Construction of a High Quality Social Credit System and Forming a New Development Pattern, issued in March last year, proposed that a sound social credit system is an important guarantee for the effective connection between supply and demand, a solid foundation for optimizing resource allocation, and an important component of a good business environment. It is of great significance for promoting efficient and smooth circulation of the national economy and building a new development pattern. Therefore, establishing a sound personal credit rating system to facilitate credit consumption for trustworthy individuals is an important path to promote consumption.
Personal credit score is an important governance tool
From the history of personal credit scoring, it was first applied in the financial field. The initial personal credit scoring tool was mainly used to evaluate loan credit risk. Afterwards, personal credit scores were gradually used in the personal credit business of financial institutions. In the 1980s, personal credit ratings were widely used in financial institutions. In the 21st century, its application has gradually expanded to commercial transactions, playing a promoting role in finance and consumption.
With the continuous promotion of China's social credit system construction, personal credit ratings are increasingly appearing in people's vision. Hangzhou, Suzhou, Wuhu and other cities have launched their own urban credit ratings, which have been applied to social governance and economic development, and have had a positive impact. Citizens who work or live in Hangzhou and have reached the age of 18, regardless of registered residence, can have their own Qianjiang points. Citizens with high scores in Qianjiang can enjoy more convenient living and better services in Hangzhou. In Wuhu, Anhui Province, citizens have access to Le Hui Fen, which incentivizes natural persons with good credit records through methods such as point rewards, policy incentives, and green channels to maintain their integrity. Measures to benefit the people are implemented in areas such as employment, tourism, sports, bidding, healthcare, culture, and finance. Suzhou citizens have osmanthus scores, and those with high osmanthus scores can enjoy "Xinyi+" services, including Xinyi Loan, Xinyi Loan, Xinyi Travel, and Xinyi Xing.
Personal credit rating is an important governance tool for the social credit system and an important component of the public credit evaluation system. The reason why it is important is that it can reward or punish individuals based on their credit scores within the legal framework, thereby constraining their economic and social behavior. In this way, a social orientation will be formed where honesty is rewarded and dishonesty is punished, creating a social atmosphere where honesty benefits everywhere and dishonesty is restricted everywhere, and promoting the development of society towards a good credit trend. Credit consumption is an important application scenario for personal credit scoring.
Personal credit rating is a reputation mechanism aimed at predicting the future behavioral ability of the actor or satisfying the decision maker's choice preferences. Personal credit score is calculated using a scoring model, based on certain scoring standards and procedures, and data from individual historical behavior. Therefore, personal credit ratings are dynamic, accumulative, and measurable, and can be used to constrain credit behavior. Generally speaking, the wider the sources and dimensions of personal credit score data, the closer the description of personal credit status is to reality.
Promote the construction of personal credit scoring in the Yangtze River Delta region
The overall plan of the Yangtze River Delta Ecological Green Integration Development Demonstration Zone proposes to explore the establishment of a public credit evaluation system covering enterprises, natural persons, social organizations, public institutions, and other entities. As an important component of the public credit evaluation system, personal credit rating is the foundation of social credit fairness, an important basis for allocating social credit resources, an important link in promoting consumption in the Yangtze River Delta region, and plays an important role in the economic development of the region.
At present, personal credit scoring is only applied to individual cities in the Yangtze River Delta region, and a unified personal credit scoring system has not yet been established in the region. Accelerating the construction of a personal credit scoring system is of great practical significance for improving the consumption capacity of the Yangtze River Delta region, promoting the comprehensive evaluation of public credit in the region, and improving the integration of the Yangtze River Delta public credit system. In specific practice, the following key issues should be noted:
Firstly, credit information is the basis for personal credit scoring.
The main basis for personal credit scoring is credit information. Credit information is a record of personal historical credit behavior data. In theory, any characteristic variables that contribute to an individual's credit score should be included in the credit information. The Regulations on the Administration of Credit Reporting Industry in China prohibit credit reporting agencies from collecting personal religious beliefs, genes, fingerprints, blood types, diseases, and medical history information, as well as other personal information prohibited by laws and administrative regulations. Other credit information can theoretically be collected.
Credit information is the fundamental condition for personal credit scoring. Personal credit information should include various aspects of economic and social activities. Classify and organize credit information from various dimensions that affect personal credit status, forming a complete and scientific credit scoring indicator system, and forming a scientific basis for judging personal credit scores. From historical experience, the more dimensions credit information has, the more scientific the indicator system is, and the closer the personal credit score is to accuracy.
At present, the scope and standards for collecting public credit information in the Yangtze River Delta region have not been unified, and various types of credit information have not been fully integrated. There is also a lack of a unified scoring indicator system, and the basis for credit scoring is not sufficient. Promoting the construction of credit scoring in the Yangtze River Delta region can accelerate the integration of credit information, establish a unified, systematic, and scientific credit indicator system, and lay the foundation for promoting unified personal credit scoring based on summarizing the experience and lessons of individual city credit scoring construction.
Secondly, the rating model is a technical tool for personal credit scoring.
Early personal credit scoring models mainly used methods such as discriminant analysis and linear probability. With the development of computer technology, methods such as statistical regression and neural networks have also been widely used. The most commonly used method currently is big data mining, which makes the method of personal credit scoring more scientific and can be applied in more scenarios. From the data sources used in the rating model, personal credit ratings generally include two categories: one is a generalized rating, which is not developed for a single credit product; Another type is customized scoring, which is developed for a certain credit product.
The personal credit rating in the Yangtze River Delta region can adopt a universal rating model, and the selected feature variables should have general and comparable credit characteristics. At present, cities in the Yangtze River Delta that carry out personal credit scoring use different models and evaluation criteria, while more cities do not carry out personal credit scoring. To promote the construction of personal credit scoring in the Yangtze River Delta region, public opinions should be solicited, a unified scoring model should be used, a unified scoring standard should be formulated, and a programmatic dynamic evaluation should be carried out.
Third, rewards and punishments are the landing point of personal credit scores.
In the social credit system, personal credit scores are an important basis for rewards and punishments. The reward and punishment mechanism mainly aims to expand the credit behavior that occurs in social and economic life, and constrain the transaction and financing costs and quantity of dishonest individuals.
At present, in the construction process of the credit system in the Yangtze River Delta, personal credit ratings provide more accurate judgment basis for credit rewards and punishments in various consumption scenarios. Citizens with high credit scores have truly realized the benefits and convenience that credit brings. However, in the process of credit scoring construction in the Yangtze River Delta region, there are still many aspects that need to be clarified regarding personal credit scoring and punishment for dishonesty. For example, how to determine the degree of dishonesty, the boundaries of rewards and punishments, and so on.
Fourthly, the promotion of personal credit scoring must be guaranteed by legislation.
Personal credit scoring must be conducted under legal constraints to ensure fairness and impartiality. Personal credit rating is an extremely serious task that affects every aspect of people's lives. The information sources, rating models, rating procedures, application scenarios, rewards and punishments of personal credit ratings should be clearly defined at the legal level. Promoting the construction of personal credit scoring in the Yangtze River Delta region can draw on historical legislative practices, summarize the experience of individual city construction, actively explore personal credit scoring legislation, and accumulate useful experience for national level legislation.
Personal credit rating is an important step and governance tool in the construction of credit integration in the Yangtze River Delta. It is an important measure to promote credit consumption and has positive significance for economic and social development. In the process of integrating the credit system in the Yangtze River Delta, one city and three provinces should actively establish a personal credit scoring mechanism, collaborate to promote the integrated development of information standards, evaluation models, evaluation procedures, application scenarios, and other aspects of urban personal credit scoring, so that trustworthy citizens can enjoy the benefits of credit consumption and make the city's credit life better.
