China Fintech Newsletter – Nov. 6-13

Ant Financial & Alibaba

Alipay processed a total of 1.48 billion payment transactions on November 11th, Alibaba’s annual shopping day, up 41% from last year, with 256,000 transactions per second at peak.

Total mobile GMV settled through Alipay was 90% of the total (US$25.3 billion), compared to 82% last year.

A total of 860 million consumer insurance policies were sold during the day.


Ant Cash Now (借呗), a small loan product available for Alipay users, issued 23.97 billion yuan (US$3.6 billion) ABS (asset-backed securities) in October.

Ant Cash Now and Ant Check Later (花呗), a line of credit for Alipay users, had each issued more than RMB100 billion (US$15 billion) ABS in the first ten months of this year. (Source)


Ant Financial and healthcare tech startup Linking Cloud co-developed a credit option for hospital visits.

Alipay users with a Zhima Credit Score above 650 can get a 1000 yuan (US$150) loan before making a hospital visit. Their accounts of Ant Check Later (revolving account) will automatically be charged afterward. (Source)

Ant Financial began to offer credit options for hospital bills in February 2016, according to Zhima Credit.


Ele.me, a leading food delivery service affiliated to Alibaba, has recently added a short-term micro-loan product. Users can take out loans from 500 yuan (US$75) to 2000 yuan (US$300) and choose to pay off in 7 or 14 days. (Source)


JD Finance

Online retailer JD launches a mobile app for the direct bank it co-established with a local bank, Bank of Dalian. The current offerings on the app, called Yibanke (壹伴客), include Liandabao (连大宝), a money market fund, and Lianxintou (连心投), a peer-to-peer financing platform. It plans to roll out a wide range of offerings including lending and investment products platforms, and robo-advisors. (Source)


JD launches its financial cloud platform that offers various solutions ranging from risk management systems to marketing services.


Tencent

Tencent’s financial cloud business has reached a deal with China Merchants Bank that the latter would adopt its AI-based fraud prevention technology. (Source)


Funding & Others

WeLab, a Hong Kong-based mobile lending startup, has raised US$220 million in a new round of equity and debt financing from Alibaba Hong Kong Entrepreneurs Fund, China Construction Bank (International), Credit Suisse and International Finance Corporation. The raise brings it to US$425 million in total funding.

The company uses unstructured mobile data and its own proprietary system for credit decisioning. WeLab also licenses its technology to banks and telcos.

WeLab operates Wolaidai (我来贷)in mainland China and WeLend in Hong Kong. Founded in 2013, the company claims it has signed up a total of 25 million users and processed US$28 billion in total loan originations.


Online marketplace lender PPDAI raised US$221 million in a downsized IPO. — Bloomberg


Online car sales and financing platform Yixin has set price range to raise up to US$900 million in Hong Kong IPO. — Caixin report


Qudian reports 308% YoY increase in total revenue and 260% increase in operating income for the third quarter. Financing income increased 214% YoY and sales commission fee increased almost 15 times.

Active borrowers increased to 7.5 million from 2.7 million a year ago.


China Rapid Finance reported Q317 earnings. Total loan volume and the total number of loans increased 250% and 490% YoY, respectively. Total fees billed and net revenue increased 62% and 125% YoY, respectively. Net loss increased 11% YoY. The company expects to turn a profit in the fourth quarter.

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