By Shi Guang, Research Team on “China’s Fintech Development: Status Quo, Trend and Development Strategy”, Research Institute of Finance, DRC

Research Report, No. 64, 2020 (Total 5808) 2020-3-30

Abstract: As one of the major fintech centers in Northern Europe, Stockholm in Sweden ranks the second in the world in density of unicorn companies, just behind the Silicon Valley in the US. Its sound social credit system serves as a strong underpinning for the fintech development in Sweden in expanding application space, solving trust problems, reducing financial risks and cutting operating costs. Established under the guidance of its tax department, Sweden’s social credit system offers credit evaluation and inquiry services to the public with the data of all circles sorted out by credit information companies. Besides, a special national debt execution agency is established to be in charge of debt execution. The social credit system keeps the balance between information disclosure and privacy protection throughout all stages, which includes full coverage in advance, wide application in the process and strict punishment for violation afterwards. The experience of Sweden’s practice shows that the leading role of the national government is conducive to enhancing the reliability of credit system, and data integration by credit information companies is conducive to efficiency improvement. Work needs to be done to gradually make credit system more user-friendly under the premise of full protection.

Key words: social credit system, fintech, Sweden