Quanzhou China July 24, 2015
Today, “Credit Consumption, Win-Win Cooperation – Signing Ceremony for the Strategic Cooperation between Industrial Consumer Finance Co., Ltd. and Quanzhou Federation of Industry and Commerce” is held in Quanzhou officially. Industrial Consumer Finance Co., Ltd. (hereinafter referred to as “Industrial Consumer Finance”) launches “Credit Consumption”, a personal credit product based on context of offline consumption, in collaboration with Quanzhou Federation of Industry and Commerce, Industrial Bank (IB), third-party payment institutions, big data analysis institutions and well-known consumption brand merchants in Quanzhou.
This meeting is attended by many guests from the Finance Bureau, State-owned Assets Supervision and Administration Commission, Federation of Industry and Commerce, Banking Regulatory Bureau of Quanzhou, senior executives of IB, senior executives of shareholders of Industrial Consumer Finance, representatives of Quanzhou Chamber of Commerce in different areas, representatives of consumption industries in Quanzhou, and a number of representatives of merchants.
Credit Consumption – initiating a new model of internet-based financial payment
“Credit Consumption” refers to an instant small-value consumption credit product with which customers can pay money for relevant consumption at the cooperative merchants with the fast consumption credit offered by Industrial Consumer Finance. “Credit Consumption” provides inclusive financial service of superior quality to the general public, faster and more flexible in the areas including loan application, approval, granting, etc. Meanwhile, merchants can improve the purchasing power of customers via the product of “Credit Consumption”, so as to increase the trading volume of their stores.
“The product is characterized by availability to more customers and instant use upon application”, a leading officer of Industrial Consumer Finance indicated, “only with an ID card, one can enjoy the convenience of consumption loans for various commodities instantly. With the mobile client App and smart POS offered to merchants or customers, the company can finish collection of basic customer information, identity verification, and loan granting so that customers can enjoy the consumption loan service instantly. Meanwhile, in collaboration with third-party payment institutions, Industrial Consumer Finance grants consumption credit based on analyzing the transaction data of bank cards, with a view to knowing customers better, offering a better consumption credit experience to them, and practicing inclusive finance.”
Relevant person-in-charge of Quanzhou Federation of Industry and Commerce said: “With developed private economy, Quanzhou boasts an active consumption market, with great advantages in such industries as textile, garment, footwear, and tea in particular. Through this cooperation with Industrial Consumer Finance, we hope to offer the service of consumer finance to consumers across China via Quanzhou businessmen, including national consumption-oriented merchants originating from Quanzhou and those of Quanzhou Chamber of Commerce in areas around China.”
At the release conference, Industrial Consumer Finance signed strategic cooperation agreements with the Federation as well as a group of local well-known brand merchants such as Xtep, Fucheng and Richun Tea Industry. In the meantime, the first group of payment institutions and data analysis institutions in partnership with the company includes China UnionPay Merchant Services, Allinpay Merchant Services, Yinsheng E-pay, China Smartpay, and Kaiyuan Dao Technology.
Deep exploration in the “New Blue Sea” -- creating a consumption credit platform which is more scenario-based
The trend of driving China’s economic growth depending on consumption in the future makes the consumer finance become a “new blue sea” for financial service gradually. On April 16, 2015, it was pointed out in the Report on the Development of Consumer Market 2015 released by Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce, “The consumption rate will hit over 50% in the latest 10 years for the first time, topping the three driving forces, namely, consumption, investment and export.” The consumption-driven development model has been basically established. At the executive meeting of the State Council on June 10, Premier Li Keqiang made deployment for the development of consumer finance, putting stress on service to the groups with low and medium incomes, releasing consumption potential and promoting consumption elevation. The meeting decided to free the market admittance threshold, extend the former pilot program for establishing consumer finance companies in 16 cities to the whole country.
The leading officer of Industrial Consumer Finance indicated: “A free market is helpful for speeding up market education, so it is easier for customers to accept consumer finance. Competition is conducive to innovation in products of consumer finance and boosting market development. Thus customers may find it easier to enjoy consumption credit.”
It has become an unremitting development objective of Industrial Consumer Finance to accelerate the extension of consumer financial service to meet the needs of residents for elevating consumption and push the sustained economic growth and transformation in the end. Since its official registration and establishment in Quanzhou on December 23 in the last year, Industrial Consumer Finance has witnessed fast business growth and kept a good level of asset quality relying on the advantages of the group platform of IB, thanks to the policies of Quanzhou Comprehensive Financial Reform Pilot Zone. By July 15, the company has established business divisions or offices in 12 Chinese cities, with the total value of granted consumption credit hitting over RMB 1.3 billion.
“With good credit records, any customer can receive a consumption loan up to RMB 200,000 within a short period, not based on any mortgage and guarantee, and the loan term can be chosen freely.” According to the introduction of the leading officer of Industrial Consumer Finance, the current innovative endeavor of the company in financial products is focused on bridging online and offline consumption scenarios fully, exploring and fostering the internet finance and consumer finance markets, and practicing inclusive finance.
In a certain period to come, there are also great rooms for the development of consumption credit. As revealed by the data of the National Bureau of Statistics of the PRC, the balance of consumption loans granted by financial institutions in 2014 hit RMB 15.37 trillion, up by 18.5% over 2013. Based on relevant data, it is predicted that the average growth rate of consumption credit may reach 20% in the coming years.
“In the early period, consumer finance is mainly offered by banks, including mortgage loan for housing and credit card. As more and more internet companies come into the area of consumer finance and the state further expands pilot programs for consumer finance companies, it can be foreseen that, except housing and automobile, the consumption credit service will witness fast development in the coming years. The players of consumer finance will become more market-oriented, the application scenarios more diversified and internet-based, and products more varied.” indicated the leading officer of Industrial Consumer Finance.