An active and dynamic credit reporting system for SMEs in China

Abstract

SMEs in China always face financing constraints and hardly obtain bank loans under unsound financing system due to the information asymmetry, while thousands of SMEs have contributed greatly to Chinese economic development in the last decades. Credit reporting has been verified to be an effective way to lower information asymmetry. However, existed credit reporting systems for SMEs can not meet the development of SMEs and provide enough information to the financial institutions in China. This paper introduces an active and dynamic credit reporting framework based on Big data and Blockchain for SMEs. The framework is composed of five modules, including credit data acquisition, authentication, evaluation, reporting, and interaction. And it features in capturing diversified data online, conducting evaluation and analysis in real time, generating online credit reports for users automatically, and providing an effective way for different entities to interact. A case study from a real credit evaluation company is also proposed finally to show the proposed framework.