Exploring the Improved Personal Credit Scoring Model of Ant Financial Services in its Disruptive Innovation Process
Ant Financial Services, by taking cloud computing and big data as underlying facilities and credit system as basis, opens up low end small and micro and individual customer market which is not satisfied in traditional financial market by disruptive service modes and concepts. "Sesame Credit" with unique digital credit means, aiming at accurately measuring personal credit score, is one of the key links for Ant Financial Services to carry out disruptive innovation. Sesame Credit is in open beta period, in spite of wide attention and remarkable achievement, it is still at the experimental stage with certain limitations. Thus, this paper first discloses the disruptive innovation characteristics that Ant Financial Services has, then analyses and discusses the scoring of Sesame Credit, and finally on this basis proposes an improved personal credit scoring model. Index Terms Ant financial services; Disruptive innovation; Sesame credit scoring; Improved personal credit scoring model. 1. Introduction Internet finance market is positioned at "small and micro" level, characterized by small amount, fastness, and convenience, and it thus has outstanding advantages in the sector of small and micro finance (1) Internet finance constantly innovates credit means by using big data mining technology to greatly reduce credit and financing costs of small and micro enterprises (2) as well as information asymmetry. The key of the healthy development of Internet finance is to deepen the credit system. The improved and perfected credit system enhances the financial risk management level and the efficiency of resource allocation, thus it better provides convenient services to low end long tailed users in the financial market and achieves disruptive innovation in the financial sector. Ant Financial Services subordinate to Alibaba Group, as a typical representative of Internet financial companies, establishes Sesame Credit, the China's first personal digital credit throughout history, in the support of Internet platform, cloud computing, and big data technologies. It can serve low end micro and small and individual customer markets where cannot be satisfied in the traditional financial market. Sesame Credit is still in open beta period but has the room for improvement in the objective acquisition of data (3) as well as for improvement in the accurate scoring (4) Therefore, this paper first discloses the disruptive innovation characteristics of Ant Financial Services, then analyses and discusses Sesame Credit scoring, and finally on this basis proposes the improved personal credit scoring model to provide reference for personal credit scoring.