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Zhima Credit (), also known as Sesame Credit, is a private
credit scoring A credit score is a numerical expression based on a level analysis of a person's credit files, to represent the creditworthiness of an individual. A credit score is primarily based on a credit report, information typically sourced from credit bu ...
and
loyalty program A loyalty program is a marketing strategy designed to encourage customers to continue to shop at or use the services of a business associated with the program. Today, such programs cover most types of commerce, each having varying features and ...
system developed by
Ant Group Ant Group ()'','' formerly known as Ant Financial, is an affiliate company of the Chinese conglomerate Alibaba Group. The group owns the world's largest mobile (digital) payment platform Alipay, which serves over 1.3 billion users and 80 million ...
, an affiliate of the Chinese Alibaba Group. It uses data from Alibaba's services to compile its score. Customers receive a score based on a variety of factors based on social media interactions and purchases carried out on Alibaba Group websites or paid for using its affiliate Ant Financial's Alipay mobile wallet. The rewards of having a high score include easier access to loans from Ant Financial and having a more trustworthy profile on e-commerce sites within the Alibaba Group.


History

Zhima Credit was introduced on 28 January 2015. to be the first credit agency in China to use a score system for individual users, using both online and offline information. It was developed when the People's Bank of China lifted the restrictions and let non-bank institutes conduct personal credit information operations.


Usage

Baihe.com, a Chinese matchmaking company, uses Zhima Credit data as part of its service.


Technology platform

In 2015, Zhima Credit published information on the methodology behind its currently running beta version. Zhima Credit's scoring system is roughly modeled after
FICO FICO (legal name: Fair Isaac Corporation), originally Fair, Isaac and Company, is a data analytics company based in Bozeman, Montana, focused on credit scoring services. It was founded by Bill Fair and Earl Isaac in 1956. Its FICO score, a me ...
scoring in the United States and
Schufa Schufa Holding AG (german: Schutzgemeinschaft für allgemeine Kreditsicherung; English: ''General Credit Protection Agency'') is a German private credit bureau supported by creditors. It has its headquarters in Wiesbaden, the capital of Hessen, G ...
in Germany.


Data collection

The corporate network of Zhima Credit, led by the Alibaba Group, spans over insurance, loan, historical payment, dating, shopping and mobility data. It collects data from all sources by utilizing the regulatory freedom it built from objects and social networks, public and private institutions and offline and online. The system is powered by "data from more than 300 million real-name registered users and 37 million small businesses that buy and sell on Alibaba Group marketplaces". Due to Zhima Credit’s close collaboration with the government, it also has access to all public documents, such as official identity and financial records.


Data distribution

Zhima Credit emphasizes its strict privacy and data protection, ensured through encryption and segregation. The firm also states that data is only gathered upon knowledge and consent of the user. According to Ant Financial, users’ scores can currently only be shared with their authorization or by themselves.


Data Structure

Big data and
behavioral analytics Behavioral analytics is a recent advancement in business analytics that reveals new insights into the behavior of consumers on eCommerce platforms, online games, web and mobile applications, and IoT. The rapid increase in the volume of raw event ...
are building blocks for the system. Data fragments are classified into five categories: * Credit History: Reflects users’ past payment history and level of debt * Fulfillment Capacity: Shows users’ ability to fulfill contract obligations * Personal Characteristics: Examine the extent and accuracy of personal information * Behavior and Preferences: Reveal users’ online behavior * Interpersonal Relationships: Reflect the online characteristics of a users’ friends The specifications of the algorithm that determine the classification, as well as the analytical parameters and indicators remain confidential. It is unclear is whether data is structured to build in tolerances for errors, for example the likelihood of a unit of data being false or from an unreliable source.


Data visualization

The five categories that Zhima Credit classifies its data into, have different weightings attached to them. Based on those, an algorithm determines a citizen's final citizen score, ranked among others. The scores in the ranking range from 350 (lowest trustworthiness) to 950 (highest trustworthiness). From 600 up, one can gain privileges, while lower scorers will revoke them. According to current plans, the final score and ranking will be publicly available.


Relation to Social Credit System

The
Social Credit System The Social Credit System () is a national credit rating and blacklist being developed by the government of the People's Republic of China. The social credit initiative calls for the establishment of a record system so that businesses, indivi ...
was introduced by the Chinese government and Alibaba promotes Sesame credit as a technology partner of the government's project. Initially, it was unclear how closely tied the Sesame credit is in relation to the national social credit system. In November 2017, Zhima Credit's general manager, Hu Tao, stated that no Zhima Credit data is shared with the Chinese government or other third parties without a user's consent. She also denied the company monitors social media content, or any other method, to assess a customer's 'qualitative characteristics' for Zhima Credit. In 2017, the Chinese government concluded that none of the pilots, which includes Sesame credit, will receive authorization as the official credit reporting system, due to concerns on conflicts of interest.


See also

*
Tencent Tencent Holdings Ltd. () is a Chinese multinational technology and entertainment conglomerate and holding company headquartered in Shenzhen. It is one of the highest grossing multimedia companies in the world based on revenue. It is also the w ...
- also offers a credit scoring system


References


External links

* {{Official website Credit scoring Financial services companies established in 2015 2015 establishments in China Alibaba Group