MyBank (aka. Zhejiang E-commerce Bank), the online direct bank affiliated to Ant Financial, reports big jump in loan origination volume to RMB 446.8 billion in 2017, compared with RMB 87.9 billion originated during the period between mid-2015 and the end of 2016.
The outstanding balance increased to RMB 96.3 billion at the end of 2017, up from RMB 32.9 billion one year ago. The average loan balance per borrower was RMB 28,000 in 2017, up from RMB 15,000 one year ago.
The total number of business borrowers, the target market of MyBank, had reached 5.7 million as of the end of 2017, up from 2.77 million one year ago.
Duoshou Duodai (多收多贷), a loan product for micro-businesses who use Alipay QR code payment service to accept payments, signed up 1 million customers between June and December 2017. The number would increase to 3 million by June 2018.
The total revenue and net profit increased by 52% and 28%, respectively.
In 2017, RMB 26.5 billion worth of loans, or 6% of the total, was made to borrowers located in rural areas. The outstanding balance of rural loans was RMB 3.9 billion, or 11.9% of the total, as of the end of 2017. Rural borrowers reached 750,000, or 1.3% of the total, in 2017.
Delinquency rate was 1.23%. The company has developed a series of big data-based borrower credit assessment and other risk management systems.
The average APR decreased by 1% in 2017. Capital adequacy ratio was 13.5%.
Yulibao (余利宝), a money market fund that allows business customers to buy into with their account balances, had had 6.75 million customers as of the end of 2017. The fund is managed by Tianhong Asset Management Co. Ltd, a mutual fund company majority-owned by Alibaba and the manager of Yu’e Bao (余额宝).
Ant Financial, the digital finance arm of Alibaba, is the biggest shareholder in MyBank that holds a 30% stake in it. Incepted in June 2015, MyBank is one of the three online-only banks in China — The other two are WeBank, an affiliate of internet giant Tencent, and XWBank (新网银行), backed by smart device maker Xiaomi.
While MyBank is focused on serving small businesses especially the merchants of the e-commerce and financial services of Alibaba and Ant Financial, WeBank mainly targets consumers on WeChat and QQ, Tencent’s massively popular messaging apps. Ant Financial’s consumer lending business is operated through two separate small loan companies.