credit score AI
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</font></div><div><a href="https://www.nanalyze.com/2018/08/invest-china-social-credit-score/"><font size="4" face="Times New Roman" color="#000000">https://www.nanalyze.com/2018/08/invest-china-social-credit-score/</font></a></div><div><font size="4" face="Times New Roman">
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</font></span></div><div><font size="4" face="Times New Roman"><span style="background-color: rgb(255, 255, 255);">The idea behind China’s Social Credit Score is so scary and bad that the only logical thing left to do may be to try and profit off of it.</span><span style="background-color: rgb(255, 255, 255);"> </span></font></div><div><span style="background-color: rgb(255, 255, 255);"><font size="4" face="Times New Roman">
</font></span></div><div><span style="background-color: rgb(255, 255, 255);"><font size="4" face="Times New Roman">[fintech intro]</font></span></div><div><font size="4" face="Times New Roman"><span style="background-color: rgb(255, 255, 255);">...</span><b><span style="background-color: rgb(255, 255, 255);">Of course, there is a dark, dystopian side to all this that even goes beyond using AI and facial recognition technologies by</span><span style="background-color: rgb(255, 255, 255);"> </span><a href="https://www.nanalyze.com/2018/02/facial-recognition-china-sensetime/" target="blank" rel="noopener noreferrer" style="text-decoration-line: none; border-bottom: 1px solid;">Chinese unicorn SenseTime</a><span style="background-color: rgb(255, 255, 255);"> </span><span style="background-color: rgb(255, 255, 255);">and others to keep China’s 1.3 billion citizens</span><span style="background-color: rgb(255, 255, 255);"> </span><del style="">under constant surveillance</del><span style="background-color: rgb(255, 255, 255);"> </span><span style="background-color: rgb(255, 255, 255);">safe</span></b><span style="background-color: rgb(255, 255, 255);"><b>. By 2020, the so-called China Social Credit Score will go nationwide, a new type of credit rating where George Orwell meets Mastercard.</b> Most of us in the United States are probably familiar with FICO credit scores, which lenders use to gauge a person’s creditworthiness based on things like payment history, number of accounts, and length of credit history. The China Social Credit Score will account for credit history but will also include stuff like online transactional habits, personal information, ability to honor an agreement and social network affiliations,</span><span style="background-color: rgb(255, 255, 255);"> </span><a href="https://www.brookings.edu/blog/order-from-chaos/2018/02/08/whats-happening-with-chinas-fintech-industry/" style="text-decoration-line: none; border-bottom: 1px solid;">according to the Brookings Institute</a><span style="background-color: rgb(255, 255, 255);">. It’s the “</span><a href="https://www.nanalyze.com/2017/03/ai-big-data-new-credit-score/" target="blank" rel="noopener noreferrer" style="text-decoration-line: none; border-bottom: 1px solid;">new credit score</a><span style="background-color: rgb(255, 255, 255);">” we’ve talked about before, but worse.</span></font></div><h2 style="background-color: rgb(255, 255, 255);"><font size="4" face="Times New Roman">China Social Credit Score</font></h2><p style="background-color: rgb(255, 255, 255);"><font size="4" face="Times New Roman">In other words, the China Social Credit Score weighs your value to society. Those with good scores (with ranges similar to FICO scores) get perks better than double points for airline miles. <a href="https://www.businessinsider.com/china-social-credit-system-punishments-and-rewards-explained-2018-4#5-keeping-you-out-of-the-best-hotels-5" target="blank" rel="noopener noreferrer" style="background-color: transparent; text-decoration-line: none; border-bottom: 1px solid;">Rule followers</a> can get discounts on energy bills, rent stuff without deposits, and enjoy better banking interest rates, according to Business Insider. Citizens who don’t follow the rules—outstanding loans, jaywalking, smoking in public places—can expect a ding to their Social Credit Score. A low enough score can get you banned from buying train tickets, getting into certain hotels and attending Chinese operas (which actually counts as a perk).</font></p><p style="background-color: rgb(255, 255, 255);"><font size="4" face="Times New Roman">If that’s not enough to get you to become a law-abiding citizen, there’s also a bit of peer pressure involved, as those with poor scores can affect the social credit ratings of others in their social media circles. Can you imagine this system in the United States? How many <a href="https://www.urbandictionary.com/define.php?term=Soap%20Party" target="blank" rel="noopener noreferrer" style="background-color: transparent; text-decoration-line: none; border-bottom: 1px solid;">soap parties</a> would it take before your buddy Rich stops throwing his cigarette butts in the street? You’re going to stop smoking now, aren’t you, Rich? Whack, whack, whack. On the plus side, New York City would be cleaner than Singapore. Or, more likely, society would devolve into a bartering system using subway rats and day-old slices of cheese pizza.</font></p><h2 style="background-color: rgb(255, 255, 255);"><font size="4" face="Times New Roman">Marriage Between Life Score and Credit Score</font></h2><p style=""><font size="4" face="Times New Roman" style=""><span style="background-color: rgb(255, 255, 255);">But we digress</span><span style="background-color: rgb(255, 255, 102);">. In an <a href="https://www.wired.co.uk/article/chinese-government-social-credit-score-privacy-invasion" target="blank" rel="noopener noreferrer" style="text-decoration-line: none; border-bottom: 1px solid;">extract from Rachel Botsman’s book</a>, Who Can You Trust? How Technology Brought Us Together and Why It Might Drive Us Apart, she notes that this marriage of “credit scoring into life scoring” isn’t limited to China. In 2015, the nosey folks at the U.S. Transportation Security Administration proposed expanding the PreCheck background checks to include social media records, location data and purchase history. We know companies are already <a href="https://www.nanalyze.com/2017/01/big-data-big-brother/" target="blank" rel="noopener noreferrer" style="text-decoration-line: none; border-bottom: 1px solid;">mining big data with AI</a> for finding <a href="https://www.nanalyze.com/2018/07/dataminr-ai-social-media-big-data-mining/" target="blank" rel="noopener noreferrer" style="text-decoration-line: none; border-bottom: 1px solid;">actionable trends in the news</a> and <a href="https://www.nanalyze.com/2017/03/ai-big-data-new-credit-score/" target="blank" rel="noopener noreferrer" style="text-decoration-line: none; border-bottom: 1px solid;">creating credit scores</a> for hipsters with little credit.</span></font></p><p style="background-color: rgb(255, 255, 255);"><font size="4" face="Times New Roman">However, China is a bit more unique. Its most recent Great Leap Forward in the 21st century found many skipping the transition from cash to plastic and jumping straight into the mobile digital economy. That has created a <a href="https://www.brookings.edu/blog/order-from-chaos/2018/02/08/whats-happening-with-chinas-fintech-industry/" target="_blank" rel="noopener noreferrer" style="background-color: transparent; text-decoration-line: none; border-bottom: 1px solid;">tech-savvy population</a> of more than 750 million people, more than 95 percent of whom access the web via a mobile device, according to the Brookings Institute. And the majority of those people use payment and social media platforms created by two tech companies, Alibaba and Tencent (the Facebook of China)....</font></p><p style="background-color: rgb(255, 255, 255);"><font size="4" face="Times New Roman">...</font></p><div><font size="4" face="Times New Roman">
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