China's central bank gave green light to a credit-scoring platform for individual online lending activities.

The company, Baihang Credit Scoring, was granted a three-year license, valid until January 31, 2021. This is the first personal credit scoring license issued by the central bank after it curbed a pilot scheme amid privacy concerns. Baihang was registered with capital of 1 billion yuan. National Internet Finance Association of China is the company's the largest shareholder with a 36 percent stake. The other 8 shareholders including Tencent Credit and Alibaba-backed Zhima Credit that holds 8 percent stake each. Analysts say Baihang will supplement the central bank's credit database, lower risks and reduce information costs for online lending platforms.