Alibaba’s Sesame Credit Runs into Issues

While Alibaba’s Sesame Credit has increased access to loans in China the government recently told them to stop a national rollout of the program; John Gapper from the FT writes that there are three main issues behind social credit scores in China; technology companies have a more liberal attitude than banks when it comes to data; social credit scores seem to promote spending and more credit where as a traditional FICO score rewards a user for self control; the scores are proprietary to the companies who created them like Alibaba did with Sesame Credit. Source.

  • Todd Anderson

    Todd is the host of PitchIt: the fintech startups podcast, a weekly interview show featuring emerging fintech founders and leading venture capitalists. He is responsible for leading the content team which covers fintech through daily & weekly email newsletters, editorial, virtual events, and in-person conferences. He has been covering fintech, banking, and venture capital for more than 15 years, including speaking regularly at industry events.