China's central bank provided its insight on fintech development initiatives for the country in a recent press conference; the press conference included four of the central bank's government officials including Zhou Xiaochuan, governor of the People's Bank of China; the central bank reported that it encourages and supports fintech development in the country; it spoke about some of its initiatives including a digital currency and other new blockchain solutions; it also noted its work to strengthen regulation specifically in the areas of unlicensed businesses and third-party payment platforms. Source
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Yirendai released its Q4 2016 earnings after the closing bell on March 15; the Chinese online lender issued a US initial public offering of its stock in December 2015; Lend Academy provides an analysis of the company's Q4 2016 results in their article; the firm has been growing online loan originations by over 100% per year since 2013; mobile has been a significant factor for the company with 98.8% of online volume generated through Yirendai's mobile application and 85% of investors using the mobile application for investment; as a well-established firm, Yirendai is also benefiting from China's P2P regulatory focus and a higher quality portfolio of borrowers and lenders; the firm is expanding its product lines and also offering a new platform as a service product, the Yirendai Enabling Platform; it expects a similar pace of growth in 2017 with minimum projected loan originations of RMB 33 billion ($4.753 billion) compared to RMB 20.28 billion ($2.9 billion) in 2016 and minimum revenue of RMB 4.4 billion ($634 million) compared to RMB 3.2 billion ($466.4 million) in 2016. Source
Asia's alternative lending sector has been growing exponentially with a number of industry dynamics influencing the market; Forbes provides an overview of current market developments in China, India and Southeast Asia; growth in the three regions has been significantly influenced by a shift towards digital and a growing middle class increasingly using mobile technology; while marketplace lending has been growing in Asia a permeating challenge across all three regions is the lack of a deeply rooted credit underwriting system with robust data for lenders; China has approximately 2,200 P2P lenders with its P2P lending market valued at an estimated $100 billion however new regulations to handle fraud are likely to shrink the market; India is reporting about 30 P2P lenders in the country; India and Southeast Asia have a number of credible alternative lenders but seem to be growing cautiously in order to avoid the outbreaks of fraud experienced in China; Forbes provides a taxonomy of the various alternative lenders in Asia. Source
