Posted 06/29/2015 at 8:49 AM
Posted 2 years ago
The Chinese e-commerce giant Alibaba is staking their claim to a piece of the growing lending market.
The company’s finance affiliate has launched MYbank, a new online lender.
Lucy Peng, CEO of Zhejiang Ant Small & Micro Financial Services Group, said in a statement on Thursday that MYbank “has a goal of servicing 10 million small and medium enterprises and hundreds of millions of consumers in five years.”
Peng went on to say that instead of using technology from Oracle and other companies like other lenders do, they will work solely the native cloud computing systems of Alibaba.
MYbank will make loans totalling 5 million yuan, or $805,000 to these borrowers.
It puts them in direct competition with WeBank, an online lender firm launched in April by Tencent Holdings Ltd.
MyBank plans to offer these loans at lower rates than WeBank as well as look into working with China Postal Savings Bank and China Construction Bank, both run by the state as it waits for regulatory approval by government financial officials.