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

  • Shaofeng Zhang
  • , Wei Xiong*
  • , Wancheng Ni
  • , Xin LI
  • *Corresponding author for this work

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

162 Downloads (CityUHK Scholars)

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.

Original languageEnglish
Article number17
JournalFinancial Innovation
Volume1
Online published24 Dec 2015
DOIs
Publication statusPublished - 2015

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 17 - Partnerships for the Goals
    SDG 17 Partnerships for the Goals

Research Keywords

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

Publisher's Copyright Statement

  • This full text is made available under CC-BY 4.0. https://creativecommons.org/licenses/by/4.0/

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