JD.com, ZestFinance join hands to make customer credit score profiles

JD.com, ZestFinance join hands to make customer credit score profiles

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JD.com is joining hands with ZestFinance, U.S credit-scoring technology company, to form a joint venture aiming to discover the person’s creditworthiness and to better tackle with loan-related issues. The joint venture will be termed as JD-ZestFinance Gaia. The new incorporation could also assist the firm to give loans to trustable customers depending on their credit score profiles and further enable the firm to retail the credit-score data to third parties, a step which proves profitable for the firm in future.

The two firms said in a joint statement that JD-ZestFinance Gaia will employ the U.S firm’s programmed technology for analyzing the JD.com’s online shoppers’ data to evaluate the credit risk score.

The joint venture structure in addition to funding details hasn’t revealed yet. Both companies said that JD.com will spend on the ZestFinance but didn’t specify how much?

JD-ZestFinance Gaia expects to form a consistent credit risk scores through the e-commerce huge shopping data information. It is a good move by the firm in an environment where correct credit risk scores has been difficult in China, in some way because of the deficiency of publicly available data and further the financial firms are reluctant to share information among themselves.

“Ultimately opaque credit markets are very hard and we’re excited to try to use our technology in that space,” said Douglas Merrill, founder and CEO of ZestFinance and a former Google Inc (NASDAQ:GOOGL) chief information officer, in a telephone interview.

Information based on users’ activities like cost of items purchased and which time they prefer for shopping will decide the qualities of users’ whether they are employed or not, according to Merrill.

The number of credit profiles the joint venture introduces with will be “close to JD.com’s net customer base” of more than 100 million, the e-commerce company said in an email.

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