Alipay’s Huabei Launches Innovative “Certificate-Based Credit Limit Increase” Program, Accepting 1,000 Professional Certificates

Could certificates boost your credit limit? Ant Group’s Huabei rolls out “Little Red Flower” feature.

In a move that could reshape the way digital credit is assessed, Huabei, the consumer credit arm of Ant Group, has introduced a novel feature dubbed “Little Red Flower.” Launched on June 17th, this initiative allows users to potentially increase their credit limits by submitting certifications, with over 1,000 different types of credentials accepted.

The core premise is straightforward: users who demonstrate their skills and qualifications can apply for a credit limit increase by providing supporting documentation. Eligible materials span a broad spectrum, encompassing professional certifications, vocational and skill-based credentials, academic qualifications and awards, as well as employment verification documents.

Early adopters have discovered that the feature isn’t limited to just traditional certifications like teaching or legal licenses. It also welcomes credentials for emerging professions like AI trainers, baristas, and nail technicians. Even seemingly informal proof like work ID cards or digital business cards from platforms like DingTalk and Feishu are considered. The potential increase in credit limits, contingent on successful verification, ranges from 100 to 3,000 yuan.

According to Fiona Fang, Huabei’s Chief Product Manager, the shift reflects an acknowledgment of the increasingly diverse modern workforce. “We recognize that career paths are evolving,” she stated. “It’s not just conventional professions that signify strong abilities or financial stability.” Huabei aims to value the skills and professional accomplishments of individuals across a wide spectrum of industries, rewarding users for showcasing their capabilities with a “Little Red Flower” credit boost.

This certificate-based credit enhancement approach is a first in the industry, and its implementation required sophisticated technological underpinnings. Huabei’s technical lead, Xiaodong Shen, explains that the feat became possible in the age of AI. AI algorithms are capable of analyzing images, extracting information, verifying authenticity, and understanding the nuances of various professions. This allows for the conversion of “fragmented” user information into “valuable” proof of skills and thus creditworthiness.

Currently, the recognition accuracy for uploaded certificates stands at 97%, with verification accuracy at 92%.

The “Little Red Flower” feature is gradually rolling out to users, with an initial focus on recent graduates and blue-collar workers. Fiona Fang emphasized that Huabei is giving users more control over their credit limits, enabling them to both increase and decrease their credit based on their financial habits. Users can not only increase their limits through the “Little Red Flower” feature, but also lower them through the bill assistant function, encouraging prudent financial behavior.

Following initial testing, Huabei observed that the delinquency rate was less than half for users who leveraged the “Little Red Flower” feature to boost their credit. Fang believes this supports financial health, as users are intrinsically motivated to maintain good credit through demonstrating their professional abilities. Huabei plans to investigate additional behavioral-based credit limit assessments, such as hobbies and prior experiences, which are designed to reward positive lifestyle choices.