Xiaomi’s XWBank Crossed RMB100bn in Issued Loans in 20 Months

Online direct bank XWbank (aka. Sichuan Xinwang Bank) had reached RMB 100 billion in consumer loan issuance as of August 2018, only 20 months after its inception in December 2016, according to TodayCFC, a local news outlet focused on consumer finance.

Consumer lending is the bank’s major business that had originated a total of more than 30 million loans to 14 million borrowers as of May 2018. The average loan amount was about RMB3300. The delinquency rate is about 0.27%. The average APR is 18%.

The consumer loan product, named Haorendai (好人贷), is not only available on XWBank’s website and mobile app but also on a variety of Chinese online consumer lending platforms or mobile apps, including Ant Cash Now (the online cash loan product of Ant Financial), Didi (mobile ride-hailing), Lufax (marketplace lending), China UnionPay (interbank network), and Tencent.

Funds are mainly from local commercial banks.

Its in-house developed automated system handles over 99% of the loan originations and spends an average of 40 seconds to process a loan.

XWBank’s other businesses include enterprise banking and custody services for online lenders. (The Chinese regulator requires peer-to-peer lending platforms to use custodians and XWBank is one of the approved custodian banks.)

The bank began to turn a profit in the first quarter of 2018 that generated RMB 58 million, RMB 87 million and RMB 95 million in net profit in Q1, Q2, and Q3, respectively.

XWBank is the third direct private bank in China, after MyBank, affiliated to Ant Financial, and WeBank which is an affiliate to Tencent. Different from XWBank and WeBank, Ant’s MyBank has been focused on SME lending.

Source: WeBank, TodayCFC

Sichuan Silver Mi Technology, a wholly-owned subsidiary of Xiaomi Finance, holds a 29.5% stake in XWBank.

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ChinaFintech – Tencent’s WeBank Totaled 100M Personal Loans as of 2017

WeBank (微众银行), the direct bank affiliated to Tencent, saw the total originations of personal loans surpassed 100 million in 2017 since its incorporation in 2014, according to WeBank 2017 annual report.

It provides Weilidai (微粒贷), a short-term personal loan product available on Tencent’s messaging apps (WeChat and Mobile QQ), and auto financing product Weichedai (微车贷) to individual borrowers. The outstanding loans of Weilidai reached RMB100 billion (US$15 billion) in 2017, according to Tencent Q4 2017 earnings report. For businesses, WeBank launched Weiyedai (微业贷) in 2017.

The total loan originations and the total number of borrowers increased respectively by 170% and 327% to RMB 870 billion (US$133 billion) and 12 million as of the end of 2017.

92% of the loan balances were less than RMB 50,000 (US$7640). 74% of the loans cost borrowers less than RMB 100 (US$15).

74% of the individual borrowers were in jobs lower paid than white-collars. Loan delinquency rate in 2017 was 0.64%, up from 0.32% for the previous year.

The total outstanding loan balance and assets increased by 55% and 57%, respectively.

Some 50 partnering financial institutions accounted for 75% of the total loan originations.

Total revenues increased by 175% in 2017, with net interest income and servicing fees increased by 140% and 305%, respectively.

Net profit increased by 261%. The average interest rate was down by 45 percent points in 2017.

The total number of registered customers increased by 214% in 2017 to over 60 million. They are located in more than 500 cities across China.

Source: WeBank, MyBank (Click to enlarge)