On September 30, the 2016 Silicon Valley Innovation & Entrepreneurship Forum (SVIEF) was held at the Santa Clara Convention Center. Entrepreneurs, developers and venture capitalists from all over the world gathered here to present high-tech innovation achievements in various fields. CredEx Fintech, the world’s very first mobile app for loans brought about by a Chinese financial technology company, set off a lively discussion among experts and media from various countries.
“Overturning traditional finance via the internet” is one of the three dreams referred to by Elon Musk in Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic Future. Unfortunately, the dream has not been realized, which is a pity for both the fields of global financial and internet technology. The technological revolution for mobile internet credit is much more difficult than that for internet wealth management and internet payment, because the former’s essence is finance and at its core is risk control.
The credit information system in China is underdeveloped and its data sources are separated, so it is much harder for China to combine risk a control system with the internet than it is for developed countries such as the United States. However, this Chinese company has managed to successfully resolve the worldwide problem of internet risk control without any previous references around the world.
By taking advantage of its technological and model innovation, CredEx Fintech has become the only Chinese financial case selected by The Wharton School in the US, behind which three world-class innovations are created.
First world-class innovation: mobile app for loans
CredEx Fintech has initiated a mobile app for loans that is done totally via the mobile internet, with registration, application, money withdrawing and repayment all completed in the mobile phone. It has been made available to all Chinese citizens. Via the CredEx Fintech app, customers can borrow as much as CNY300,000 within three minutes without a mortgage or face-to-face meeting.
This product has resolved the five problems of traditional loans once for all; difficulties of application, approval, money withdrawing, repayment and re-lending. It is a revolutionary overthrow of the traditional loan business.
Second world-class innovation: first risk control by mobile internet
Behind this type of credit product is the technology of mobile internet risk control initiated worldwide by CredEx Fintech.
CredEx Fintech’s technology of mobile internet risk control is based on three aspects: firstly, the prevention of false applications by technologies like face recognition; secondly, recognition of false applicants and interception of discredited customers by integrating the best big data of credit reporting in China and credit rating work for customers with an intelligent scoring model; thirdly, keep tracking customer’s financial transactions and non-financial transactions throughout their lifecycle and dynamic management of customer’s credit limit and loan rate.
Professor Amit of The Wharton School pointed out that CredEx Fintech Group is proficient in both finance and technology and their innovation in risk management reconstructed the leading edge of the global financial industry.
Third world-class innovation: connector of financial institutions and borrowers
CredEx Fintech is playing the role of connector between financial institutions and borrowers in China for its outstanding ability of mobile internet risk control and product design. CredEx Fintech doesn’t offer money itself. All money borrowed via CredEx Fintech is from China’s four big state-owned banks.
Professor Amit believes that CredEx Fintech’s model of cooperating with banks to access capital greatly improves the running efficiency of capital and creates a larger value for shareholders. Meanwhile, it can raise financial efficiency, optimize financial service and present the strength of financial technology.
At the end of February 2016, CredEx Fintech started to spread to some first- and second-tier cities in China. Within five months, the number of CredEx Fintech customers surpassed 3 million, its credit limit exceeded 10 billion yuan and its daily lending totaled 100 million yuan.
From the perspective of Yi Xianrong, a Chinese economist, CredEx Fintech is likely to be the next jumbo enterprise in China. The loan market of small and micro businesses in China is huge, worth around 20 trillion yuan, which will probably make CredEx Fintech’s loan transaction reach a trillion yuan level.
In the presentation, Zeng Xuhui, president of CredEx Fintech, paid tribute to Musk, the king of global innovation. He thought that CredEx Fintech and Musk have the same dream- that technology will change finance. The credit revolution of the mobile internet practiced by CredEx Fintech has pushed the dream one step forward and Musk’s unfulfilled dream will eventually come true via CredEx Fintech.