JD Finance and China UnionPay Release Blockchain-based Risk Information Sharing System
November 30 Beijing— The “2017 Internet Financial Payment Security Alliance Conference” hosted by China UnionPay and Jingdong Finance was held in Beijing. More than 160 industry experts from China UnionPay, police auhority, commercial banks, payment processors and security technology companies attended the conference to discuss information sharing on risk control in the era of mobile payment, explore intelligent data control of big data and enhance cooperation in risk prevention. The blockchain-based information sharing system developed by JD Finance and China UnionPay is also released on the conference. The system is designed to improve information sharing and safety of payment security.
With the thriving of internet finance in China recently, many illegal business are spawned to harness profits from consumers and merchants alike. Mobile payment is the new frontier. Founded in October 2013, the Electronic Payment Security Union is the most influential payment security cooperation platform in China. At present, there are 104 member agencies including police authority, banks, payment agencies, industrial research institutes, e-commerce companies, security technology companies, terminal equipment manufacturers and other business entities, covering every aspect of the payment industry. The entity has conducted extensive cooperation in areas such as information sharing, case investigation, risk control technology research, safety payment promotion and judicial cooperation with police. Since 2017, all parties in the Union continued to strengthen risk control. Investigation for over 385,000 cases was performed and a total of 290 billion yuan of suspicious funds was scrutinized. 87 million yuan of loss was recovered by intercepting fraudulent transaction, cargo detaining and delayed settlement.
In January 2017, Jingdong Finance and China UnionPay signed a strategic cooperation agreement in Beijing. Both parties are cooperating in payment product innovation, co-branded cards and rural finance. They also jointly explored ways to provide more services such as big data services and risk control. In May this year, the two parties announced that they had successfully tested the blockchain bottom-layer protocol, which means that both parties will be able to achieve more commercial applications based on the technology in the future.
Xu Ling, VP of Jingdong Finance, said that risk control is the top priority of financial services and the core financial capability that Jingdong Finance is building. JD Finance has always attached great importance to industrial risk control cooperation. The “Risk Information Sharing Plan” jointly developed by China UnionPay and Jingdong Finance will further strengthen the industry risk information sharing mechanism and continuously enhance the risk control and anti-fraud capabilities of union member units.
Xu Ling, Vice President of Jingdong Finance (photo credit:cebnet)
It is understood that blockchain-based risk information sharing system developed by JD Finance and the China UnionPay is in strict compliance with relevant laws and legal requirements. The system aims to build a information sharing technology that is more comprehensive and safe. Entry rules are set up for members and the number of member queries is logged in the blockchain to ensure that the information is immutable and traceable.