Chinese Fintech and group for loans

Service in China

Service in general has improved dramatically in China over the last 20 years ! Although some procedures are still cumbersome, the concern for efficiency often turns the tide in the right direction. For the past ten years or so, an individual has been able to make an instant bank transfer for a new beneficiary from his or her telephone with all the necessary security. In France, most banks still ask to wait 24 hours, or even more, to register the new beneficiary and some are starting to offer instant transfer in 2020. It is not a question of technology since for business accounts, these functions exist. A desire to ensure good customer service?

American creativity

Chinese banking is not lacking in creativity, which is more reminiscent of American than European practices. Lufax, 陆金所, in Shanghai, associated with the leading insurance group Ping An 平安, presents a whole range of ingenious financial services including crowfunding 众筹. For some observers, the world of Chinese Finn tech has taken the lead in the sector.

拼团贷款 emprunt en groupe

Group of clients

The local banks are showing a lot of dynamism, some of them have positioned themselves, with the help of online applications, in the niche of “grouping *” with the possibility of forming groups to, for example, borrow, save, or do financial management, 拼团存款, 拼团存款,、拼团理财. Indeed, in order to attract a wider clientele with more attractive rates, return or interest, banks have jumped on this opportunity.


The Caixin site explains that the Bank of Shanghai offers a rate of return of 4.125% on an interest-bearing account for three years for a group of five people who would each pay 50,000 yuan while a single client with 50,000 would only get 3.68%.
This business model also allows banking institutions to lower their costs and take advantage of the hyper-connected younger clientele. The Central Bank regulation stipulates that the amount to access better rates is 200,000 yuan. This system also allows banks to get better rates with the possibility to reach this threshold more easily.

Be careful!

The boom in the consolidation phenomenon has attracted the attention of the regulatory authorities who fear risk and an increase in bank indebtedness. They have launched an investigation to get a clearer picture of the situation. In China, we are moving fast, but uncontrolled slippages can happen very quickly too! We are moving towards restrictions? Yes, we are!

* group, the Chinese term is 拼团 , literally ” fighting group”

If you are interested in finance, please consult our section on the subject here. 

27 may 2020

Posted on Categories Finance

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