Ant Financial Services Group today introduced its credit-scoring service Sesame
Credit, which leverages “big data” technology and customer behavior
analytics to help make credit more available to millions of consumers
across China.
Sesame Credit is the first credit agency in China to use a scoring
system based on online and offline data to generate individual credit
scores for consumers and small business owners. These ratings provide
lenders, merchants and other companies with a reliable tool for
assessing their customers’ creditworthiness, hence giving more consumers
access to a host of borrowing services such as home loans, mobile-phone
service contracts, car loans and other types of installment credit.
Making credit more widely available to consumers and small business
owners is a primary goal of Sesame Credit, company officials said.
“Sesame Credit is focused on those who may have little credit history at
traditional credit agencies,” said Yu Wujie, Chief Data Scientist of
Sesame Credit. “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.”
“By leveraging the big data we have and the state-of-art technology we
deploy, we believe the debut of Sesame Credit will not only enable
credit providers to make holistic and accurate decisions, but will also
empower merchants to provide more credit-related services,” said Eric
Jing, Ant Financial’s Chief Operating Officer. “This will make their
everyday life easier and help spur the development of a healthy economic
and social environment.”
Powering Sesame Credit’s scoring system, which is currently in the
beta-testing phase, is Ant Financial’s connection to e-commerce giant
Alibaba Group. By tapping into Alibaba’s vast online ecosystem, Sesame
Credit is able to collect data from more than 300 million real-name
registered users and 37 million small businesses that buy and sell on
Alibaba Group marketplaces including Taobao Marketplace and Tmall.com.
Payment histories are also available from Alipay, a subsidiary of Ant
Financial that is China’s largest online payment provider. Sesame Credit
is also working actively with public agencies, financial institutions,
and various types of merchants to obtain more data that can effectively
reflect consumers’ creditworthiness.
Sesame Credit officials stressed that protecting user privacy and
personal data is of utmost concern. Data is collected only with the
knowledge and consent of the individual subjects of the information. All
data is encrypted and segregated. Access to a specific subject’s credit
scores can occur only with the authorization of the subject.
Sesame Credit’s services are expected to be applied in a slew of daily
life scenarios. For example, landlords will be able to check potential
tenants’ credit scores; employers will be able to make better hiring
decisions by checking the credit histories of job applicants; users with
good creditworthiness can rent a car without paying a deposit. Sesame
Credit is testing the service with some of China’s hotels, which are
allowing travelers with superior sesame credit ratings to book and stay
without paying in advance. In addition, Sesame Credit is also conducting
a test program with a Chinese online dating site that allows suitors to
check their potential dates’ credit ratings to make sure they are not
meeting someone who is dishonest or untrustworthy. The credit
information can only be accessed with candidates’ permission.
Sesame Credit is being launched as an independent brand. The company has
been registered as Sesame Credit Management Co., Ltd, operating under
Ant Financial.
Sesame Score
Sesame Scores are indications of the users’ creditworthiness, which
range from 350 to 950 points. Users will be able to check their Sesame
Scores both in the Alipay Wallet mobile app and through merchant
websites that accept Sesame Credit services. The higher the scores, the
lower chance the user may default. The scores are calculated using five
different factors, each with different weightings that can vary
according to individual profiles:
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Credit History reflects a user’s past payment history and
indebtedness, for example credit card repayment and utility bill
payments.
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Behavior and Preference reveals a user’s online behavior on the
websites they visit, the product categories they shop, etc.
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Fulfillment Capacity shows a user’s ability to fulfill his/her
contract obligations. Indicators include use of financial products and
services and Alipay account balances.
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Personal Characteristics examine the extent and accuracy of
personal information, for example home address and length of time of
residence, mobile phone numbers, etc.
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Interpersonal Relationships reflect the online characteristics
of a user’s friends and the interactions between the user and his/her
friends.
About Ant Financial Services Group
Formally established in October 2014, Ant Financial Services Group is
focused on serving small and micro enterprises as well as consumers.
With the vision “to turn trust into wealth,” Ant Financial is dedicated
to building an open ecosystem of Internet thinking and technologies
while working with other financial institutions to support the future
financial needs of society. Businesses operated by Ant Financial
Services Group include Alipay, Alipay Wallet, Yu’e Bao, Zhao Cai Bao and
Ant Credit.
Copyright Business Wire 2015