BUSINESS
Ant Group starts to differentiate consumer loan business Jiebei from bank loans
Published On :
BEIJING (Reuters) – China’s Ant Group said on Monday that it is making efforts to “differentiate” part of its short-term consumer loan business Jiebei, as it pursues a Beijing-led restructuring aimed at reining in some of its freewheeling businesses.
Ant, the financial affiliate of e-commerce giant Alibaba Group, saw its $37 billion IPO derailed by regulators last year and has since been working to turn itself into a financial holding firm.
Local media on the weekend reported changes at Jiebei after Chinese regulators in April asked Ant to conduct a sweeping business overhaul, which includes folding its credit products Jiebei and Huabei, into a new consumer finance firm.
They also criticised Huabei and Jiebei for improper links between payment services and financial products, saying that these may have over promoted loan services to users.
The Shanghai Securities News reported on Sunday, citing borrowers, that the Jiebei platform had made changes to show which loans were being provided by Chongqing Ant Consumer Finance Co, and which were provided by banks.
Jiebei is gradually working on brand differentiation,” an Ant Group spokesperson said, adding that consumer credit services provided independently by banks or other financial institutions will be presented on a “credit loan” page.
Ant did not elaborate on how much of its business would be affected by the brand differentiation.
Ant has been ordered by regulators to complete the branding restructuring of Huabei and Jiebei within 6 months after its consumer finance firm starts to operate, local media the 21st Century Business Herald reported earlier.
Ant’s consumer finance unit won approval to begin operating in Chongqing city in June.
Huabei and Jiebei were used by around 500 million people in the 12 months to June 30, 2020, Ant said in its IPO prospectus.
In September, Ant’s virtual credit card service Huabei begun to send its consumer credit data to a database run by China’s central bank, a key move for both the company and regulators as Beijing tightens its grip over the financial technology sector.
(Reporting by Cheng Leng and Brenda Goh; editing by Richard Pullin)
Jesse Pitts has been with the Global Banking & Finance Review since 2016, serving in various capacities, including Graphic Designer, Content Publisher, and Editorial Assistant. As the sole graphic designer for the company, Jesse plays a crucial role in shaping the visual identity of Global Banking & Finance Review. Additionally, Jesse manages the publishing of content across multiple platforms, including Global Banking & Finance Review, Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune.
-
-
Uncategorized4 days ago
Swedish government commission recommends easing mortgage repayment rules
-
-
-
NEWS4 days ago
Ryanair H1 profit falls 18% on lower fares, but price weakness moderating
-
-
-
NEWS4 days ago
German companies’ hiring plans drop to four-year low, Ifo finds
-
-
-
BUSINESS4 days ago
Burberry shares jump on Moncler bid report
-