In the West – especially since the 2008 recession – companies often complain about how difficult it is to getcredit from the banks. In China this concern is even more common, due to the banks (all of them state-owned) receiving government instructions to mainly lend specifically to state-owned corporations, leaving a fairly small proportion of credit capacity to private companies.
Well, we all know how in Asia aproblem constitutes in reality an opportunity… and for nobody else more than for Jack Ma, founder and former President of the Alibaba Group, the Chinese technology giant.
Alibaba is already a leader in e-commerce, electronic payments and other digital services. And now there is MYbank, an online bank filling in a major gap in the Chinese financial market.
| MYbank offers (through an app, of course!) the possibility to get credit in 3 minutes, with the intervention of… 0 people. The system uses some 3.000 variables and has already lent out some 250 billion euros to approximately 16 million small and medium-sized companies. With a default rate of 1%! |
Sources: Reuters & Caixin Global