Alibaba's Internet lender extends $6.88b in loans in 8 months
An Alibaba-backed private lender said on Monday that its focus on providing financial services to clients who are underserved by traditional banks has resulted in billions in loans to small businesses and individuals over the past eight months.
E-commerce giant Alibaba holds a 30-percent stake in MYbank through its financial arm, Ant Financial. MYbank said it has lent a total of 45 billion yuan (around $6.88 billion) to farmers, merchants on Alibaba's online marketplace, restaurant owners and momand-pop stores, extending loans to 800,000 borrowers that have trouble accessing financing through traditional banks.
In the eight months since it opened for business last June, MYbank's loan balance has grown 30 percent each month on top of a client base that has been expanding 12 percent for the past five months.