In December 2020, Beijing Guidelines Ant Group “corrected” the business after discontinuing the IPO. This may have been the largest initial public offering in history. In this plan, regulators called on Ant to renew its credit business, among other changes subject to the same set of regulations that oversee financial institutions. In other words, Ant can no longer overcome its bohemian practices by calling itself a “technology” company.
Almost a year later, Alibaba-affiliated fintech powerhouses have shown that the rebuilding of popular consumer credit products is almost complete.
According to the company, credit loan products accounted for nearly 40% of Ant’s revenue in the six months to June 2020. Prospectus Submitted last year. The two main products are Huabei (expenditure), launched in 2014 for consumer daily spending, which acts like a virtual credit card. A year later, Jiebei (Borrow) was introduced as a credit product for large consumer transactions.
In the old model, Ant created a loan and was subsequently undertaken by a third-party bank or other financial institution. As of June 2020, approximately 98% of credit balances generated through Ant’s platform were either underwritten or securitized by partner financial institutions, according to the company’s prospectus.
Jiebei has split into two brands, users reported earlier this week. The credit line extended by third-party banks is now called Xinyong Dai (credit loan) in Alipay, Ant’s flagship financial services app. What the recently established Ant consumer finance company offers at the request of regulatory agencies remains the Jiebei brand.
Huabei has also started restructuring, This shows the user which loans are offered independently by the bank and which loans are offered by Ant’s consumer finance company. Huabei focuses on “small amount” daily transactions. Said In a Weibo post.
“Following brand differentiation, users applying for credit loan services can get more information about credit providers to avoid brand confusion.”
Huabei also said it is currently submitting consumer credit information to a database supervised by the central bank of China.that It has started Routine in September after establishing a consumer credit company that needs to report credit information to the central bank of China as well as banks.
Ant is changing how consumers borrow money from its app – TechCrunch Source link Ant is changing how consumers borrow money from its app – TechCrunch
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