Alibaba's In­ter­net len­der ex­tends $6.88b in loans in 8 months

The Pak Banker - - COMPANIES/BOSS -

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.

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