ZestFinance has partnered with China’s second largest e-commerce company JD.com to create a joint venture that will provide credit risk scores to Chinese lenders so they can extend credit to consumers.
ZestFinance and JD.com’s new credit score is being first implemented on the Chinese e-commerce giant’s site. Chinese consumers shopping on JD.com will now be able to apply for a line of credit to buy items from the e-commerce company. ZestFinance and JD.com will use data from consumers’ past and present online shopping habits to predict risk. For example, the algorithms will take into account factors like what time of day the person is buying something (which could hint whether they have a day job), what type of item they are buying, and their history of buying expensive items. JD.com says it has more than 100 million active customers.