Loans via a Mobile App--A Chinese Initiative Solves a World-level Problem in Risk Control and Enlightens 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 within 3 minutes just by face swiping has only happened in China. Borrowing a big sum of money almost empty-handed with just a mobile phone? This instantly caused a great sensation at the LendIt Conference, which is the largest and most influential summit of the Fintech industry.

As the only personal loan app representative of the Chinese Fintech industry, this Chinese enterprise is called CredEX Fintech. It was invited to participate in the round table forum chaired by Peter Renton, founder of LendIt and Lend Academy, with the presence of Jo Ann Barefoot, former Deputy Comptroller of Currency (OCC) of the US and a professor at Harvard University, to discuss Fintech innovations and regulatory developments.

Chinese CredEX Fintech Solves a World-Level Problem in Mobile Internet Lending

At the conference, Mr. Zhou Liyong, Chief Risk Officer of CredEX Fintech mentioned that there are more pain points with the credit setting in China than in the US, but just facing this issue. It has moved its risk control system onto the mobile Internet! Prof. Jo Ann Barefoot from Harvard University marveled that China's Fintech sector is a place with talented people.

First, different from the US, where there is a sound credit rating system in place, China is slower in the development of its credit reference industry, lacking diversity in its personal credit rating system, without sound laws and regulations for the credit rating system and sound supervision of it, and with an even lower degree of awareness of credit among the public.

Second, due to uncertainty in the willingness and ability of borrowers to repay loans, coupled with the segmentation of sources of credit reference, it is more difficult to move the risk control system onto the virtual Internet in China than in developed countries, such as the US.

Facing these pain points, what trump cards does this indigenous Chinese Fintech company have to hit home and to attract the attention of financial gurus in the world? What secret is hiding behind it?

Inventing the SkyNet Risk Control System to Establish Itself in Internet Credit

Before world-level difficulties in risk control for Internet credit, in a story in October, 2016, Wall Street Journal mentioned the three well-known killer weapons of the unique "SkyNet" risk control system of CredEX Fintech, which caused a three days' sensation in the US financial market.

1: Fraud Prevention and Detection Comparable to the Banking System

There are two typical types of fraud with loans via mobile apps, i.e., identity fraud and organized fraud. The former is where the applicant commits fraud as an impostor, and the latter is where fraudulent people copy or counterfeit data in an organized way and submit applications within a short period of time to get loans by cheating. For identity fraud, CredEX Fintech has adopted a human face identification technology as one of its major preventive measures. For organized fraud, CredEX Fintech has adopted a technology called "Complex Network" to identify fraudulent people. With these measures, the company's success rate of interception can be over 95%, and its security defense system can be compared to the internal system of any domestic bank in China.

2: Through Self-development, Setting up Its Own Credit Evaluation System as an Improvement on the National One

CredEX Fintech's self-developed credit evaluation system is equal to its own self-developed FICO rating system. Through cooperation with FICO, it has set up a credit system perfectly suited to the actual circumstances of China, especially the 56 million small and medium-sized Chinese enterprises in its algorithm, filling a big gap in China's credit evaluation system. Moreover, CredEX Fintech has started cooperation with authoritative and compliant third-party data companies to convert information into digital ratings, taking advantage of big data and at millisecond-level calculation speeds.

3: Smart Financial Services and Artificial Intelligence Enabled Life Cycle Management System in China

Apart from precisely evaluating the risk of clients at the approval stage so as to offer reasonable prices and initial credit limits, the system will also dynamically evaluate the credit and fraud risks of clients as the frequency of their use of CredEX Fintech products increases. Former Deputy Comptroller of Currency (OCC) of the US was astonished at the collection technology with such human experience. Jo Ann Barefoot said, "In this age when services are valued the most, AI and human touch will be precursors in the market; and this system will dynamically evaluate the credit of users and adjust their ratings ultimately according to everyday financial transactions and non-financial transactions of users so as to focus on each and every stage of the life cycles of customers, free ourselves from all kinds of off-line traditional research and investigation of customer information and create better credit experience for our users. This will be a great reform of the Fintech industry."

Will CredEX Fintech Panic the US Fintech Industry with Its Ground-breaking Reform of the Industry?

It is reported that the number of users of the CredEX Fintech App has exceeded 5 million since it was brought on-line 10 months ago, and the total credit extended has exceeded 30 billion RMB, with daily maximum credit of 100 million RMB. At the same time, it boasts an average credit limit standing at 60,000 RMB, well ahead of other industry players. In the Internet credit market of China, this is a rare and astounding figure.

If we look at the whole industry, however, for the whole year of 2015, according to statistics from McKinsey, the total global investment into the Fintech sector was as high as 19.1 billion US dollars, nearly 8 times that in 2011, making it become the next hot area for investment. In a document titled 2016 Top Markets Reports Financial Technology, the US Dept. of Commerce points out that China will be well leading other Asian regions in this field in the future. Former Deputy Comptroller of Currency (OCC) of the US thinks this is unbelievable. "The reform that has been brought about by the new technology from CredEX Fintech will make the US, which has been leading this industry, to reflect in depth and conduct special research. Why China has made such an outstanding achievement? It is high time for us to change our mindset and strategy and to be aware of hidden crisis."

In the bestseller The Iron Man: Elon Musk's Quest to Forge a Fantastic Future, it is mentioned that Elon Mush has three dreams: renewable energy, space exploration and disruption of traditional finance through the Internet. For the time being, the first two dreams have been largely realized, and it seems that the third hasn't made much progress. The debut of CredEX Fintech this time, however, will push ahead with the third dream of Musk by another historical step, which will be a new benchmark for the Fintech sector in China as well as a blessing for the benign development of the global Fintech ecology. Just as Prof. Amit from Wharton Business School puts it, "The fact that we have noticed the achievement by CredEX Fintech itself indicates that China is already a global leader in Fintech, leading this financial field, Fintech, into the next age of development, and CredEX Fintech will be the king in this field of our age."

CredEX Fintech 
A mobile app for personal loans that supports borrowing and repayment anytime, allowing customers to borrow as much as RMB 300,000 (USD 40,000+) just within three minutes on their phone. CredEX Fintech tackles five key problems within the traditional global loans industry: difficulties in application, approval, money withdrawing, repayment, and re-borrowing. A closer look reveals that the prowess of CredEX Fintech is underpinned by its five disruptive innovations: the mobile app, supporting borrowing and repayment anytime, taking the lead in personalizing interest rate, the mobile Internet risk control system and a unique business model of connecting financial institutions with borrowers.

Media Contact:

Melissa Barto for LendIt 
JCUTLER media group 
[email protected]

SOURCE CredEX Fintech