The start of 2015 seems to be quite important for Tencent. Following Webank is Tencent Credit Investigation Co. Ltd., the one within the list of ‘Personal Credit Investigation Business Preparation Announcement’ released by central government. Along with Tencent are other 7 companies which including another internet finance giant – Sesame Credit, backed by Alibaba.

Written by Hanna Chen, Analyst Consultant of L'Atelier Asia


China’s credit investigation is controlled by the Central Bank and local government, and only 320 million (23.7% of the whole China popularity) people’s credit records are included. At the same time, data quality is also an issue. Since banks are the only source for personal credit, Central Bank just holds some basic data like personal information and credit card & debit card record. Credit data’s openness, credit institutions’ number and ability are other problems for the nation’s credit market.

Alibaba and Tencent are both be taken serious and given more chances in the recent years. It’s easy to understand this choice – the market coverage and closeness are the main strength for them. As the biggest third-party payment platform in China, Alipay has more than 300 million real-name users and takes 50% markets shares on PC, 70% on mobile. The social media giant’s two businesses – Wechat and QQ, respectively have 50 million users and 80 million active users. The key factor – consumption record (both online and offline) is the one they could contribute to the whole system.

Another news I saw last night, the personal tax no. system is under the construction, which means the personal tax record to be an evaluation factor of the personal credit if the system is successfully built and run.

It’s good to see that government opens the credit service to more private companies, but what more critical is the bridges which link all these data. How it work and how much effectiveness could it bring still need more years to check