Value of Big Data to Finance : Observations on an Internet Credit Service Company in China

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review

3 Scopus Citations
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Author(s)

  • Shaofeng Zhang
  • Wei Xiong
  • Wancheng Ni
  • Xin LI

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Detail(s)

Original languageEnglish
Article number17
Journal / PublicationFinancial Innovation
Volume1
Online published24 Dec 2015
Publication statusPublished - 2015

Link(s)

Abstract

Background:

his paper presents a case study on 100Credit, an Internet credit service provider in China. 100Credit began as an IT company specializing in e-commerce recommendation before getting into the credit rating business. The company makes use of Big Data on multiple aspects of individuals’ online activities to infer their potential credit risk.

Methods:

Based on 100Credit’s business practices, this paper summarizes four aspects related to the value of Big Data in Internet credit services.

Results:

1) value from large data volume that provides access to more borrowers; 2) value from prediction correctness in reducing lenders’ operational cost; 3) value from the variety of services catering to different needs of lenders; and 4) value from information protection to sustain credit service businesses.

Conclusion:

The paper also discusses the opportunities and challenges of Big Data-based credit risk analysis, which needs to be improved in future research and practice.

Research Area(s)

  • Big data, Credit rating, Information economics , Value of information, Finance

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