Page 144 - Special Topic Session (STS) - Volume 1

STS420 Jianhua (Klyment) H.
which they can withdraw later, and the power bank will pump out of the
machine. Many people may not be willing to pay the deposit since they are
afraid that they cannot get back the money. Similarly, Jiedian also has concerns
that consumers may not return the power bank and lost it forever. That is how
personal credit score plays its role. With users’ authorization to check his credit
score, Jiedian will waive the deposit if the score is high enough. Moreover,
subsequently, credit score platform will check whether the customer returns
the power bank and pay the renting fees. If not, the customer’s credit score
will be adjusted accordingly.

Figure 3: Borrowing a Power Bank and Authorize Merchants to Check Credit Score for Waiving
Deposit

As for microfinance, a typical example is loans. Let us see an example of
Weilefen, a product which cus customers can lend money to pay credit card
bills with low interest. Weilefen is built within WeChat’s ecosystem, through
Official Account, a mini-portal that merchants interact with its followers, an
individual can check his loan limit. For the first time users, he needs to
authorize Weilefen to check his credit profile in Credit Reference Center
powered by The People’s Bank of China by providing IC number and full name.
Then in the backend, Weilefen will calculate the loan limit based on his credit
profile and the credit score model designed by Tencent for internal business.
After the user gets the limit, he may proceed to pay the credit card bills by
several installments right inside Official Account. By default, Weilefen will read
the card information bound in WeChat Pay, but users can add another credit
card as well. The loan will be released within 30 minutes after users’
confirmation.

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