Ant Financial

Ant Financial began as part of the Alibaba Group, initially facilitating online financial transactions through Alipay. It expanded its services to include various financial products, such as the Yu'eBao money market fund and the micro-loan provider Ant Micro, before being rebranded as the Ant Financial Services Group. In 2014, Ant Financial launched an online bank named MYbank, which primarily focused on extending financial services to the previously underserved rural population in China. MYbank's Flourishing Farmer Loan program aimed to provide loans by leveraging big data from internet transactions to assess creditworthiness, especially for individuals who had no prior banking experience. This innovative approach attempted to create a nationwide credit-rating system, pioneering financial inclusion in China's rural areas.

However, the program encountered several challenges. MYbank had to ensure its big data and algorithmic methods could accurately predict credit risks for small loans without resorting to the costly infrastructure of traditional banks. Additionally, it was uncertain whether the rural customer base was extensive enough to make the program profitable at scale. Building a reliable national credit-rating system for small enterprises posed significant hurdles, requiring continuous data integration and regulatory cohesion across diverse regions. Moreover, MYbank must navigate regulatory changes and potential economic reforms that could impact its operating model and financial stability

Developed in partnership with the School of Business, Renmin University of China