Alibaba boss Jack Ma’s MYbank was launched in 2015 and mainly grants loans to small businesses and private individuals. It lends money to customers who would find it difficult to obtain loans from large banks. In the first four years after the bank was founded in 2015, MYbank granted a total of 245 billion euros in loans to almost 16 million small companies, with the default rate moving at just one percent.
MYbank has now announced a program to provide the equivalent of 51 billion euros in collateral-free loans for distressed companies that are on this year’s Global Shopping Festival on 11.11. to prepare.
As part of the special program, MYbank is offering a total of 25 billion euros in short-term loans to help small and micro-entrepreneurs cope with the economic effects of the COVID-19 pandemic. This allows business owners, especially smaller sellers with urgent capital needs, to receive full payments once buyers place their pre-orders, which in turn shortens the payment cycle and revenue by up to around 20 days.
“For many SMEs across China, this year’s 11/11 Global Shopping Festival has grown in importance and represents an important opportunity to strengthen business continuity and growth,” said Jin Xiaolong, President of MYbank. “We are committed to helping them during this critical time and alleviating revenue pressures by expanding our collateral-free financing offerings to companies that have pre-sales orders.”
The financing service is available to merchants in line with MYbank’s commitment to support the sustainable growth of SMEs in the run-up to the 11/11 Global Shopping Festival. Many consider the event to be their biggest engine of growth of the year.
Founded in 2015, MYbank is one of the leading private online commercial banks in China, focused on helping SMEs and smallholders. It was the first bank in China to set up its core banking system entirely via the cloud without physical branches.
Leveraging Ant Group’s AI, computing and risk management technologies, MYbank also pioneered the “310 Model” for SMB finance, which offers collateral-free business loans that take less than three minutes to apply on a mobile phone and less to approve lasts than a second and does not require human intervention.
SMEs in China supported by the “310 Model” have shown resilience during the Covid-19 pandemic. 98% of them have repaid their loans on time by June 2020.
According to the People’s Bank of China (PBOC), SMEs make up over 90% of businesses in China, contributing 80% to urban employment and 60% of China’s GDP. By June 2020, MYbank and its partners had served 29 million SMEs in China, including street vendors. Your average loan amount is 36,000 RMB (about 5,000 USD).
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