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Online Shopping Data to Help Revolutionize China’s Economy

In the U.S., 85% of consumers have credit ratings, but less than a quarter of China’s population have credit records, according to Alibaba.

Ant Financial Services Group, the parent company of Alipay which was founded by Alibaba, has established the first credit agency in the country to use a system based on online and offline data to generate individual credit scores for consumers and small business owners.

Ant Financial launched Sesame Credit to leverage “big-data technology and customer behavior analytics” to assess creditworthiness – which is expected to make it easier for companies to extend credit to millions of Chinese consumers.

In the U.S., Kabbage innovated the process of examining online transactions to establish creditworthiness for small online sellers looking for working capital advances, and Ant Financial is utilizing some of the same methodologies.

“Sesame Credit is focused on those who may have little credit history at traditional credit agencies. They may have never obtained bank loans or applied for credit cards. However, they might be active Internet users who shop online a lot, e-pay their utility bills on time, have a stable residential status and have been using their mobile phone numbers for a long time. We will take these and other factors into consideration when assessing consumers’ creditworthiness, according to Eric Jing, Ant Financial’s Chief Operating Officer.

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.