After three years of preparation, CCB Consumer Finance was recently approved and is expected to become the 31st licensed consumer finance institution.
CCB announced that the purpose of establishing a consumer finance company is to implement the national strategy of expanding domestic demand, promote the development of the consumer market, expand the coverage of consumer finance services through corporate and professional operations, and practice the concept of inclusive finance. Bring new growth space to the group.
Analysts pointed out that CCB Consumer Finance’s registered capital of 7.2 billion yuan is second only to China Merchants Union and Ant Financial among current consumer finance companies, and its strategic intentions are very obvious. In the future, the business scale is expected to increase rapidly and become a major force in consumer finance companies.
On the evening of September 27, CCB issued an announcement stating that it was approved to establish CCB Consumer Finance Co., Ltd. (hereinafter referred to as "CCB Consumer Finance Co., Ltd.") with a registered capital of 7.2 billion yuan, which will serve as CCB's It is managed by a first-level holding subsidiary. Among them, China Construction Bank plans to invest 6 billion yuan, with a shareholding ratio of 83.33; Beijing State-owned Assets Management Co., Ltd. plans to invest 800 million yuan, with a shareholding ratio of 11.11; Wangfujing Group plans to invest 400 million yuan, with a shareholding ratio of 5.56.
After the preparatory work is completed, you must apply to the regulatory authorities for opening in accordance with relevant regulations and procedures.
CCB stated that this investment is an important measure to promote and support consumption growth, stimulate residents’ consumption potential, and enhance the fundamental role of consumption in economic development. Focusing on residents’ consumption upgrade needs and emerging consumer formats, we provide innovative products and services that meet diversified and multi-level consumer needs, practice the concept of inclusive finance, and further explore the field of consumer finance, bringing new growth space to the group.
It is reported that CCB, as a large state-owned bank, can carry out consumer finance services such as consumer loans and credit cards nationwide. However, CCB’s loan business is mainly corporate and personal mortgage loans, accounting for more than 83%. In the first half of 2023, CCB’s personal consumption loans accounted for 1.25%, and credit card loans accounted for 4.46%, which are not high.
Yu Baicheng said that the combination of "bank local state-owned capital consumption scenario" is a relatively reasonable shareholder composition. CCB Consumer Finance has operating leverage and a registered capital of 7.2 billion yuan, currently ranking second only to China Merchants Union Consumer Finance Company and Ant Consumer Finance Company. Its strategic intention is very obvious, and its business scale is expected to increase rapidly in the future, becoming a major force among consumer finance companies.
There are currently 30 consumer finance companies in the country, with a loan balance of 710.6 billion yuan at the end of 2021, and there is still considerable room for growth in business scale. However, since 2021, based on a cautious attitude, no new consumer finance companies have been approved by regulatory agencies, and only Bank of Ningbo, Bank of Nanjing and other institutions have been approved to obtain consumer finance company licenses through mergers and acquisitions.
Yu Baicheng pointed out that consumer finance companies are still one of the leaders in digital innovation in retail financial services in recent years. The approval of the establishment of CCB Consumer Finance Company means that the establishment of consumer finance companies has reopened, which will have a positive effect on the development of the industry.
Su said that it is expected that in the future, consumer finance companies in the banking industry will continue the characteristic of "the stronger get stronger" and continue to explore and try in key areas such as customer acquisition capabilities, scenario construction, and ecological construction, so that consumer finance The business is fully integrated with the retail business of the shareholder bank to form a strong synergy to jointly enhance the level and ability to serve the real economy.
“The current competition among consumer finance companies is more reflected in the competition of comprehensive capabilities, and the head effect will be more obvious. In addition to the technical level, the diversification and cost of the capital side, the quality of the customer base and income of the asset side Level, risk control capabilities and compliance management capabilities are all important factors for consumer finance companies to maintain performance growth," Yu Baicheng said.
This article comes from "International Finance News". Related Q&A: What does consumer finance belong to? Consumer finance is not a loan platform. It refers to a financial service method that provides consumer loans to consumers of all walks of life. Consumer finance companies are non-bank financial institutions established with the approval of the China Banking and Insurance Regulatory Commission to provide loans for consumption purposes to individual residents in China.
For example, Home Credit Consumer Finance, Immediate Consumer Finance, Zhongyuan Consumer Finance, China Post Consumer Finance, Shanxi Merchants Consumer Finance, etc., as well as Du Xiaoman Finance, Suning Finance, JD Finance, etc. Customers can go to the above-mentioned consumer financial institutions to apply for loans. Generally, as long as the personal credit is good and they have sufficient repayment ability, they can successfully borrow money. In addition, some consumer finance companies cooperate with other loan platforms and can also act as lenders to issue loan funds. Everyone needs to be careful not to borrow money from unknown small loan companies. After all, it has not been approved by the China Banking Regulatory Commission. It is easy to encounter loan fraudsters or loan sharks and fall into loan scams, resulting in personal financial losses. Consumer finance is a rapidly developing Internet financial industry. It is a financial industry that has emerged with the rapid development of China's Internet industry and modern people's consumption concepts. It will not be affiliated with a certain lending platform. It is the current Internet financial industry. a collective name. 1. Is consumer finance a company or an online platform? Consumer finance is the unified name of the Internet financial industry. Consumer finance companies are unified and established in China through the State Banking and Insurance Regulatory Commission to issue small loans and earn interest. , does not accept deposits in any form, and is mainly a non-bank financial institution that provides a kind of financial support for scattered users and people who are in urgent need of capital turnover. As of now, there are still many financial companies that legally and reasonably exist in China, including: Alipay’s Huabei, Jiebei, JD Gold Bar, Bank of China Consumer Finance, China Merchants Union Consumer, Suning Consumer and various credit card consumption, etc. are all part of consumer finance. kind. 2. Consumer Finance does not belong to any lending platform. Consumer Finance is a financial company in China whose main business is the issuance of small loans and is not affiliated with any online platform. Consumer finance is a small loan company established with the approval of relevant national departments. It is a for-profit financial company that mainly issues a certain amount of consumer loans in response to modern people's consumption concepts. 3. Characteristics of modern consumer finance Consumer finance is a way to provide modern consumer finance to everyone who needs funds. Consumer finance does not specifically refer to any online lending platform. It is a product of China's traditional finance moving towards modern finance. It is a modern consumer financial tool that emerged based on modern people's consumption concepts and the rapid development of China's Internet. It is a financial tool that distributes small amounts of funds to the general public. In summary, consumer finance is not a specific online platform, but a product of current social development. It is also an Internet financial industry in China other than bank credit that is more in line with current people's consumption. Consumer finance provides convenient financing methods for today's young people and those who are in urgent need of funds. Able to better serve the majority of residents