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The Chinese e-commerce JD.com to offer credit service rival to Alibaba’s

The Chinese e-commerce giant JD.com has collaborated with ZestFinance to set up a joint venture that would assess the credit risk in order to meet the massive market need. ZestFinance is a credit scoring technology firm that is based out in the United States.jd.com-china

The joint venture will use ZestFinance’s machine studying know how to assess the internet buyer’s knowledge of JD.com and carve out a credit score danger rating. This was announced in a joint press launch that took place on Friday.

According to Mr. Chen, “Today’s announcement with ZestFinance, a leader in consumer credit evaluation, is a foundational step toward building a reliable system for assessing credit risk that will help meet the huge market need”.

Alibaba has also opted for a similar model wherein it has entered into a joint venture with eCommerce titan Ant Financial Services group. The joint venture between the two companies is named Sesame Credit. It also uses the shopping data on its website in order to assess the accurate credit risk score.

Moreover, JD is expected to invest in ZestFinance. However, the value of the deal has not been disclosed yet. Assessing the credit scores in China has always been challenging provided that there is a lack of sharing platforms between financial and investment firms.

The CEO and Founder of ZestFinance Douglas Merrill stated, “At ZestFinance, our mission is to provide fair and transparent credit to everyone, everywhere in the world – We’re excited to work with JD.com to create powerful consumer credit evaluation in China”.

The e-Commerce company wrote in an email that the number of credit profiles to be launched by the joint venture will be close to the total customer base of JD.com, which is more than 100 million.

The consumer credit market of China is expected to maintain an annual growth of 20 percent between the years 2014 and 2017. JD.com is reportedly the first customer for the credit score and the e-commerce company is looking to expand its customer base including various industries and lenders. This would also include the peer-to-peer lending platforms.

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About David Mayor

Writer and editor of The Next Digit Media, he takes care of iOS, Apple, Mac and other gadgets. He worked at Apple Inc, before joining to TND Media. He was graduated in Bachelor of Journalism & Mass Communication Degree from Cambridge University. All posts by David

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