Ant Group in Talks to Form Credit Scoring JV with Beijing
In this article (5)
Ant Group is reportedly in discussions with state-owned enterprises to create a credit scoring firm that houses data collected from its massive user base.
The formation of the new entity could see Ant Group cede control over financial data of more than a billion users, according to a report citing unnamed users.
Ant Group’s data sharing process with Beijing has been ongoing with reports earlier this year that the People’s Bank of China was unhappy with the progress.
According to the report, considerations are being made to form a joint venture co-owned by Ant and state-owned enterprises (SOEs) – including an unnamed Shanghai-based financial conglomerate.
The talks also covered the types of data collected, alignment between the credit scoring system and broader state plans as well as whether the joint venture should be controlled by Ant or SOEs.
The entry could be established as soon as the third quarter this year though discussions are ongoing and no final decisions have been made.
Questions & Answers
Q.Who would own the proposed credit scoring joint venture?
Who would own the proposed credit scoring joint venture?
The joint venture is being considered for co-ownership between Ant Group and state-owned enterprises, including an unnamed financial conglomerate based in Shanghai.
Q.What is the primary purpose of this new credit scoring entity?
What is the primary purpose of this new credit scoring entity?
The firm would house data collected from Ant Group's extensive user base, suggesting its main purpose is to manage and utilise this financial data for credit scoring.
Q.Why is Ant Group reportedly discussing this joint venture now?
Why is Ant Group reportedly discussing this joint venture now?
Reports earlier this year indicated the People's Bank of China was dissatisfied with the pace of Ant Group's data sharing process with Beijing, possibly prompting these discussions.
Q.How soon could this new entity potentially be established?
How soon could this new entity potentially be established?
The entry could be established as soon as the third quarter of this year, although discussions are still ongoing and no final decisions have been made.
Reader pulse
Will this JV benefit Ant Group?
18,097 votes so far