Fintech consulting group, in collaboration with Rakuten Institute of Technology, has been developing a sophisticated AI-based credit scoring system that will optimize businesses in loan value chain for Rakuten’s fintech companies. This credit scoring system install confidence in lenders by reducing default rates. In addition to ensuring defaulter rates are reduced, the AI based algorithm also find potential customers who can be given credit despite not qualifying all the traditional criteria set by the lending organizations. This is done by analyzing not only the credit history of customers, but also its past transactions in Rakuten ecosystem like Ichiba, travel, etc. This algorithm significantly boosts the earnings of fintech companies of Rakuten by allowing them to extend loans to the right customers.