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Chinese Fintechs Use Big Data To Give Credit Scores To The ‘Unscorable’

26 July, 2017

Chinese Fintechs Use Big Data To Give Credit Scores To The ‘Unscorable’

What can you do in 52 seconds? Internet juggernaut Alibaba can generate RMB 1 billion in sales for its annual online shopping carnival. Last November 11, China’s so-called Singles’ Day, sales across Alibaba platforms reached new heights: RMB 120 billion, or $17.9 billion. Behind the dazzling numbers is its Alipay unit’s new tool Hua Bei (“Just Spend”).

Hua Bei functions as a mini-loans provider. Users can pay for purchases in installments within a month after goods are delivered. Hua Bei accounted for 28% of the transactions made on Singles’ Day in 2016. Fifteen million users applied to increase their Hua Bei credit limit before the carnival even began. Once debt-leery Chinese consumers are finally at ease with spending borrowed money, at least online.

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