The fintech boom has made it easier than ever for Chinese people to borrow money. Consumers receive frequent loan offers via websites or apps, and they can take out a loan with just a few taps on their phones.
The lending market backed by partnerships of banks and tech companies has surged to 2 trillion yuan ($283 billion), Caixin learned from regulatory sources. Hundreds of banks and other financial institutions have joined a game led by Alibaba’s Ant Financial Services Group, Tencent-backed online bank WeBank and Pingan Easy Money, a unit of China’s largest insurer, Ping An Insurance.
The tie-up of finance and internet technology makes it possible for more people to access banking services anywhere. But as much as it sounds like a win-win, the fintech lending boom raises concerns over risk controls, potential for contagion in a financial crisis, and lagging supervision, industry and regulatory experts say.
“Regulators love (such loan business) as much as they hate it,” a bank loan officer told Caixin.
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Contact reporter Han Wei (firstname.lastname@example.org)