Chinese consumer finance companies have served 140 mln people: association

Recently, the China Banking Association (CBA) has released the 2020 year report of the development of China consumer finance companies, which shows that as of the end of June in 2020, there are 26 consumer finance companies in China, with assets worth 486.15 billion yuan, loan balance reaching 468.61 billion yuan, and serving customers totaling 140 million.

Recently, the China Banking Association (CBA) has released the 2020 year report of the development of China consumer finance companies, which shows that as of the end of June in 2020, there are 26 consumer finance companies in China, with assets worth 486.15 billion yuan, loan balance reaching 468.61 billion yuan, and serving customers totaling 140 million.

In 2019, the average non-performing loan ratio of consumer finance companies was 2.63%, slightly higher than the average non-performing loan ratio of credit cards, and a slight decrease compared to the year of 2018.

According to the report, in 2019, consumer finance companies have stepped up efforts to develop various sub-scenarios, which are divided from mainstream scenarios such as home appliances, home decoration, tourism, and education, effectively stimulating domestic demand.

The report also shows that the demands for consumer finance mainly come from low- and middle-income groups, especially young groups who have demands but insufficient incomes.

Under the influence of the COVID-19 epidemic, the young people are easier to lose jobs or have their incomes cut down, which means their demands for consumer finance will increase.

As the short-term suppressed consumer demands gradually rebound, consumer finance may embrace rapid short-term growth after the epidemic.

According to incomplete statistics, as of the end of June 2020, consumer finance companies in China have reduced principal and interest up to 277 million yuan in support of fighting the pandemic, which has benefited 381,700 customers.

Disclaimer: This is an article created by Michael Liang for Chinasdg.org. You can find the original article here: https://chinasdg.org/2020/08/23/chinese-consumer-finance-companies-have-served-140-mln-people-association/.

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