{"id":46969,"date":"2018-04-09T08:22:51","date_gmt":"2018-04-09T08:22:51","guid":{"rendered":"https:\/\/innovationiseverywhere.com\/?p=46969"},"modified":"2018-04-09T08:22:51","modified_gmt":"2018-04-09T08:22:51","slug":"chinas-credit-scoring-can-companies-leverage-3-digits","status":"publish","type":"post","link":"https:\/\/innovationiseverywhere.com\/fr\/chinas-credit-scoring-can-companies-leverage-3-digits\/","title":{"rendered":"China\u2019s Social Credit Score: how can companies leverage on these 3 digits?"},"content":{"rendered":"

Imagine a world where each individual has a score calculated based on their personal credit history, behavioural habits, finances, demographics, social networks and so on. In addition, this score will give them access (or not) to certain privileges on services as varied as car purchases, room rentals, hotel bookings, or even easier visa procedures to certain countries. However, low scores can even get individuals barred from facilities like trains and more. <\/span><\/p>\n

Whilst that sounds like the plot for a TV show it is also a new reality in China. <\/span><\/p>\n

At the end of 2017, China already had over 450 million people using mobile financial services like Alipay & WeChatPay, whose data currently powers the social credit score. By 2020, the Chinese government intends to make the Social Credit Score mandatory for every Chinese citizen. <\/span><\/p>\n

Hence, with government support, the system is set to analyze the behavior patterns of over 1.3 billion people. <\/b><\/p>\n

The impact on businesses will be significant both in China \u2013 where the score will generate an entire new ecosystem of \u201cboosters\u201d, exclusive perks, and profiling \u2013 as well as overseas, where businesses hosting Chinese tourists could utilise scoring to deliver tailored services accordingly. <\/span><\/p>\n

Social Credit Score: An Opportunity to Save Costs and Offer Differentiated Services<\/span><\/h2>\n

Instead of debating on whether the system is right or wrong, we are focusing on the undeniable opportunity for companies to improve transparency, reduce business risk and save on operational costs <\/span>given that scoring will be an essential feature for Chinese customers<\/b>. \u00a0<\/span><\/p>\n

\"\"<\/p>\n

A snapshot into Alibaba\u2019s social credit score system Sesame Credit.<\/span><\/p>\n

Today, on social credit score platforms like Alibaba\u2019s Sesame Credit, various interactions will influence a user\u2019s score between 350 and 950. Generally, scores above 650 will offer a user certain privileges such as deposit-free rental of the bike-sharing platform Ofo, online queing for hospital visits and other benefits. <\/span><\/p>\n

Currently five factors come together to influence a user\u2019s credit score with aspects such as <\/span>Connections<\/i><\/b> taking into account the credit scores of a user\u2019s friends to determine his reliability. However, how each of the factors influence a user\u2019s score is not disclosed.<\/span><\/p>\n

Thus with the social score system, processes such as providing a loan will become more streamlined experiences for the customer which are also fully automated. The customer only needs to click a few buttons and can have the money immediately in his account with algorithms analysing his score for instant loan approval. <\/span><\/p>\n

Social scoring enables companies to offer their services to people who have been traditionally locked out, like students and rural Chinese, whose large market share can fulfill the underserved zone of traditional finance. <\/span>Its key benefit is simplifying processes, giving access to services without traditional deposits, certificates or other collaterals, offering businesses new customers.<\/b><\/p>\n

4 Chinese Companies Leveraging on the Social Credit Score<\/span><\/h2>\n

To better illustrate the concept, we have some startups and companies that are already leveraging on the social credit scoring system to offer differentiated services.<\/span><\/p>\n

\"\"\"\"<\/p>\n

\u201cTanwu\u201d is a rental platform specifically for electronics such as cameras, drones, mobile phones, etc. The company was established in Shenzhen in 2016 with US$300,000 funding, and has grown rapidly to over 100 employees during its first year.<\/span><\/p>\n

By cooperating with Alibaba\u2019s Sesame Credit, Tanwu <\/span>offers deposit-free service to people whose scores are higher than 650 with these \u201cqualified persons\u201d being able to rent brand new products at a very cheap price.<\/b> For example, it costs just US$8 (<\/span>\u00a5<\/span>56<\/span>)<\/span> per month to rent a Canon camera.<\/span><\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

\"\"<\/p>\n

\u201cYoudemai\u201d, is the first recycling company in China focusing on digital and household electrical appliances. The platform enables people to sell their idle equipment for cash. Founded in Shanghai in 2014, it raised a new round of funding of US$20 million in December 2017.<\/span><\/p>\n

By linking their social credit scores, sellers who have a score above 600, just need to fill a form online and they can receive the money immediately, even before sending their product for sale.<\/b><\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

\"\"<\/p>\n

\u00ab\u00a0Tujia\u00a0\u00bb, the Chinese Airbnb, offers over 650,000 short-term rental accommodations worldwide. It has been operating since 2011 and has achieved over US$40 million revenue in two years. Tujia also raised another US$300 Million in October 2017. <\/span><\/p>\n

Customers whose credit score is above 600 can enjoy a waiver on their deposit and free-check out service at Tujia accommodations.<\/b><\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

\"\"<\/p>\n

\u201cCAR. Inc\u201d (CAR) is China\u2018s largest car rental service provider. CAR is dedicated to providing customers across China with car rental services ranging from short-term rentals, long-term rentals, chauffeured car services as well as assorted value-added services such as roadside assistance, one-way rentals, etc. It became a public company in 2014, 7 years after launch. <\/span><\/p>\n

 <\/p>\n

Since 2016, they provide car rental service without requesting pre-authorized transaction and commission charges to people who have more than 650 in their credit score system.<\/b><\/p>\n

 <\/p>\n

 <\/p>\n

<\/h2>\n

Curious to Know More?<\/span><\/h2>\n

Check out our report \u201cChina Credit Score Report: 3 digits that will determine your customer<\/a>\u201d to get a better understanding of the opportunities provided by this new system in China and more case studies on how companies are using Social Credits Scores to offer differentiated services.<\/span><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Imagine a world where each individual has a score calculated based on their personal credit history, behavioural habits, finances, demographics, social networks and so on. In addition, this score will give them access (or not) to certain privileges on services as varied as car purchases, room rentals, hotel bookings, or even easier visa procedures to […]<\/p>\n","protected":false},"author":30,"featured_media":47005,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[461,501,510,502,80],"tags":[],"class_list":["post-46969","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-east-asia-china-south-korea","category-facility-management","category-healthcare","category-mobility","category-research-category"],"_links":{"self":[{"href":"https:\/\/innovationiseverywhere.com\/fr\/wp-json\/wp\/v2\/posts\/46969","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/innovationiseverywhere.com\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/innovationiseverywhere.com\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/innovationiseverywhere.com\/fr\/wp-json\/wp\/v2\/users\/30"}],"replies":[{"embeddable":true,"href":"https:\/\/innovationiseverywhere.com\/fr\/wp-json\/wp\/v2\/comments?post=46969"}],"version-history":[{"count":0,"href":"https:\/\/innovationiseverywhere.com\/fr\/wp-json\/wp\/v2\/posts\/46969\/revisions"}],"wp:attachment":[{"href":"https:\/\/innovationiseverywhere.com\/fr\/wp-json\/wp\/v2\/media?parent=46969"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/innovationiseverywhere.com\/fr\/wp-json\/wp\/v2\/categories?post=46969"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/innovationiseverywhere.com\/fr\/wp-json\/wp\/v2\/tags?post=46969"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}