Chinese fintech industry leaders Dianrong (点融网) and Quark Finance (夸客金融) announced on March 20 that they will launch a financing business operation model called Dianrong-Quark Credit Factory, aimed at exploring new ways to increase access to financial services for both individuals and small and micro-sized businesses, according to a Dianrong press release posted on its website (in Chinese).

Pioneered by Singapore’s Temasek Holdings, the “credit factory” (in Chinese) model is a business model mainly used for credit certification of small and micro-sized enterprises as well as individuals. Loans lent to such groups are small, but are lent at high frequency. The adoption of the “credit factory” mode, thanks to its high efficiency and economies of scale in handling petty loans, can help big financial firms gain some ground lost to the country’s mushrooming small loan companies in the microfinance market.

An upgrade to the traditional “credit factory”, Dianrong-Quark Credit Factory utilizes such fintech means as big data, anti-fraud management systems, and decision engine. It can help lenders reduce manual operation, save costs and cut operation risks through its powerful quantitative system when they handle credit certification for individuals or small and micro-sized businesses.

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Sheila Yu

Sheila Yu is a Shanghai-based technology writer. She brings readers the biggest news from Chinese language tech media. Reach her at sheila@technode.com.