Mobile App Loans – A Chinese Initiative Solves Global Risk Control Problem, Enlightening US Fintech Pros
BEIJING, March 16, 2017 / PRNewswire / – This is an age of face swiping, but the myth of borrowing up to 300,000 RMB only happened within 3 minutes by face swiping China. Borrow a large sum of money with just one cell phone almost empty-handed? This immediately caused a sensation at the LendIt conference, the largest and most influential summit in the fintech industry.
As the only personal loan app representative of the Chinese fintech industry, this Chinese company is called CredEX Fintech. It was invited to participate in the round table forum chaired by Peter Renton, Founder of LendIt and Lend Academy, in the presence of Jo Ann barefoot, Former United States Deputy Currency Auditor (OCC) and Professor at the Harvard Universityto discuss fintech innovations and regulatory developments.
Chinese CredEX Fintech solves a worldwide problem with lending via the mobile internet
At the conference, Mr. Zhou Liyong, Chief Risk Officer of CredEX Fintech mentioned that there are more vulnerabilities in loan setting China than in the US, but only faced with this problem. She has moved her risk control system to the mobile internet! Prof Jo Ann barefoot from Harvard University wondered that China The fintech sector is a place with talented people.
Unlike in the US, where there is a solid credit rating system, China is slower in the development of its credit reporting industry, lacks diversity in its personal credit rating system, without solid laws and regulations for the credit rating system and oversight of it, and with an even lower level of public credit awareness.
Second, because of the uncertainty about the willingness and ability of borrowers to repay, combined with the segmentation of credit reference sources, it is more difficult to relocate the risk control system to the virtual internet China than in developed countries like the US.
Given these flaws, what assets does this native Chinese fintech company have to hit the mark and get the attention of financial gurus around the world? What is the secret behind it?
Invention of the SkyNet risk control system to establish itself in Internet credit
Prior to the worldwide difficulties in controlling risk for Internet credit, the Wall Street Journal mentioned in a story in October 2016 the three known killer weapons of CredEX Fintech’s unique “SkyNet” risk control system, which was a three-day sensation in the US financial market.
1: Fraud prevention and detection comparable to the banking system
There are two typical types of mobile app loan fraud, identity fraud and organized fraud. The former is fraudulent by the applicant as a fraudster, and the latter is when fraudulent persons copy or falsify data in an organized manner and submit applications within a short period of time to obtain credit through fraud. For identity fraud, CredEX Fintech has introduced human face identification technology as one of its main preventive measures. For organized fraud, CredEX Fintech has introduced a technology called “Complex Network” to identify fraudulent individuals. With these measures, the company’s eavesdropping rate can be over 95% and its security defense system can be compared to the internal system of any domestic bank China.
2: Through in-house development, setting up your own credit rating system as an improvement to the national one
The self-developed credit rating system from CredEX Fintech corresponds to its own self-developed FICO rating system. By working with FICO, she has created a credit system that perfectly matches the real circumstances of the customer China, in particular the 56 million small and medium-sized Chinese companies in its algorithm, filling a large gap in China Credit rating system. In addition, CredEX Fintech has started a collaboration with authoritative and compliant external data companies to convert information into digital ratings using big data and calculation speeds in the millisecond range.
3: Smart financial services and AI-supported lifecycle management system in China
Aside from accurately assessing customer risk in the approval phase in order to offer reasonable prices and initial credit limits, the system also dynamically assesses customers’ credit and fraud risks as the frequency of their use of CredEX Fintech products increases. Former U.S. Assistant Currency Examiner (OCC) was amazed at the collection technology with such human experience. Jo Ann Barefoot said, “In this age where services are most valued, AI and human touch will be the forerunners in the market; and this system will dynamically assess users’ creditworthiness and ultimately their ratings on everyday financial and non-financial transactions the user to focus on each and every stage of the customer lifecycle, get rid of all kinds of traditional offline research and exploration of customer information, and create a better credit experience for our users. Fintech industry reform. “
Will CredEX Fintech panic the US fintech industry with its breakthrough industry reform?
It is reported that the number of users of the CredEX Fintech App has exceeded 5 million since it went online 10 months ago and that the total credit granted has been exceeded 30 billion RMB, with maximum daily credit of 100 million RMB. At the same time, she has an average credit limit of 60,000 RMB, well ahead of other players in the industry. In the internet loan market of China, this is a rare and amazing number.
However, if you look at the entire industry for 2015 as a whole, according to McKinsey statistics, total global investment in the fintech sector was as high as $ 19.1 billion, almost eight times that in 2011, making it the next hot investment area. In a document titled 2016 Top Markets Reports Financial Technology, the U.S. Department of Commerce advises that China will also lead other Asian regions in this field in the future. Former U.S. Assistant Currency Auditor (OCC) thinks it’s unbelievable. “The reform brought about by CredEX Fintech’s new technology will encourage the US, which is the leader in this industry, to reflect deeply and conduct specific research. Why? China did such an outstanding job? It is high time we changed our mindset and strategy and became aware of the hidden crisis. “
In the bestseller The Iron Man: Elon Musks In search of a fantastic future, it is mentioned that Elon Mush has three dreams: renewable energy, space exploration and the disruption of traditional finances from the internet. The first two dreams have largely come true for the time being, and the third doesn’t seem to have made much headway. However, this time around, CredEX Fintech’s debut will take Musk’s third dream to another historic step that will set a new benchmark for the fintech sector in China as well as a blessing for the friendly development of global fintech ecology. As Prof. Amit from Wharton Business School puts it: “The fact that we have noticed the performance of CredEX Fintech ourselves shows that China is already a global leader in fintech and is leading that finance area, fintech, into the next evolutionary age, and CredEX Fintech will be king in this area of our age. “
A personal loan mobile app that supports borrowing and repayment at any time and allows customers to borrow as much as possible 300,000 RMB (USD 40,000+) just within three minutes on your phone. CredEX Fintech addresses five main problems within the traditional global loan industry: Difficulties in applying, approving, withdrawing money, repaying and re-entering. A closer look shows that the performance of CredEX Fintech is underpinned by its five disruptive innovations: the mobile app that supports loans and repayments at all times, takes the lead in personalizing the interest rate, the risk control system for the mobile Internet and a unique business model for Liaison of finance institutions with borrowers.
Melissa Barto for LendIt
JCUTLER media group
SOURCE CredEX Fintech