The superfine of the Antitrust to Alibaba is just a taste of the enormous costs that the Chinese e-commerce giant, like other colleagues in the sector, will have to bear.
There are only a few months left to adapt Ant Financial, its financial arm, to the new standards that from 1 January set the quantitative requirements for the concentration of loans, aiming to control the risks associated with the loans granted by the bank-platform fintech alliance.
The source of Alibaba’s funding
Ant financial directly finances only about 2% of its $ 257 billion of consumer loans disbursed in 2020, all the rest is generated by partner banks.
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Under the new rules, online platforms must contribute at least 30% of the financing of the loans they offer together with banks.
For some banks, third-party lending, including fintech companies, has grown rapidly in recent years. If you are excessively focused on a few internet platforms, in the event of risks, the entire financial system could be in danger.
From a risk management perspective, the regulators considered it necessary to encourage more internet platforms and more financial institutions, thereby also promoting competition in the market.