Con­sumer Fi­nance Era

Novem­ber 5, 2018

NewsChina - - MEDIA FOCUS -

In com­par­i­son with de­vel­oped coun­tries, China's con­sumer fi­nance sec­tor started late, in 2009, but it has been boom­ing ever since. The con­sumer fi­nance mar­ket is ex­pected to reach 37.4 tril­lion yuan (US$5.6T) and in­ter­net-based con­sumer fi­nance is ex­pected to reach 3.4 tril­lion yuan (US$490B) in 2019, ac­cord­ing to ire­search Con­sult­ing Group. Con­sumer fi­nance en­ter­prises are mainly non-bank­ing fi­nan­cial in­sti­tu­tions pro­vid­ing loans for con­sump­tion, but due to the in­com­plete per­sonal credit in­for­ma­tion sys­tem and the lack of sound risk man­age­ment and con­trol mech­a­nisms, the gov­ern­ment has re­cently tight­ened reg­u­la­tion of the mar­ket, mean­ing that sev­eral of China's big­gest li­censed con­sumer fi­nance en­ter­prises have seen slower profit and rev­enue growth. In­sid­ers ar­gue that on­line fi­nanc­ing en­ter­prises with weak rep­u­ta­tions and funds have to come up with new busi­ness ideas and pro­vide more off­line sce­nar­ios in or­der to sur­vive.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.