'Sesame Credit' is the name of a new credit scoring system that was developed by the Chinese government, Tencent and Alibaba's payment service Alipay. This gamified credit system runs on a scale from 350 to 950 and includes a rewards system. Users with top credit are able to book some hotel rooms in China without making advanced payments. A higher score ultimately gives citizens more freedoms, while it may become challenging for people with lower scores to receive approvals for loans or authorization to leave the country.
Overall, one's 'Obedience Score' as a citizen is impacted by everything from retail purchases and political views to friends on social networks. This system is set to become mandatory in 2020.
Sesame Credit is also being tested with a Chinese online dating website, which will allow users to assess the credit scores of potential dates.
Credit-Scoring Apps
The Credit Scores of Chinese Citizens are Gamified with 'Sesame Credit'
Trend Themes
1. Gamified Credit Scoring - The implementation of gamified credit scoring systems within the financial services sector present an opportunity for new and innovative approaches to credit analysis.
2. Obedience Scoring - The use of personal data to assess a user's 'Obedience Score' presents an opportunity for the development of new ethical frameworks surrounding data privacy and usage.
3. Social Credit Systems - The use of social credit systems presents an opportunity for the development of new approaches to regulating human behavior and the allocation of social benefits.
Industry Implications
1. Financial Services - The implementation of gamified credit scoring systems presents an opportunity for financial services firms to develop innovative approaches to credit assessment and lending.
2. Data Analytics - The use of personal data to assess individual creditworthiness presents an opportunity for the development of new approaches to data analytics and predictive modeling.
3. Social Media - The integration of social media into credit scoring systems presents an opportunity for tech companies to develop new and innovative approaches to regulating online behavior.