US DEPARTMENT OF COMMERCE SAYS DIANRONG LEADS CHINA’S P2P LENDING SEGMENTMay 28, 2016
In a recent report by the US Department of Commerce, Dianrong was singled out as a role model in China’s P2P lending industry and for “leading the segment”. In its 2016 Financial Technology Top Markets Report, a market analysis report on the global FinTech sector, the Department also affirmed the significant role played by China’s P2P lending industry, which has attracted much attention in recent years for its rapid growth.
The report focused on five countries, including China, and analyzed various FinTech segments, such as payments and crowd-funding, with the purpose of understanding and unlocking more export and investment opportunities for US businesses.
The report pointed out that, as the second largest economy in the world, China has a large consumer base, which offers huge potential for FinTech development. China’s FinTech market currently focuses on payments, lending and bitcoin, with the P2P lending segment growing rapidly.
The report said, “As of the end of 2015, P2P lending has now topped USD 150 billion or RMB 982.3 billion, four times more than the amount in 2014. China’s P2P lending platforms have cumulatively brokered a total of RMB 1.37 trillion transactions as of the end of December 2015.” It added, “Due to low returns in traditional bank deposits and limits on the movement of money, P2P lending has grown quickly in China,” and that such growth has been fueled in part by SMEs’ need for easier access to loans.
The report stated that in the early stages of the country’s P2P lending sector, China lacked relevant policies, which led to certain issues in the industry. However, regulators have since released policy drafts to promote the healthy development of the industry. The report added that there are currently three major companies in China’s P2P lending market, “with Dianrong leading the segment.”
The report also cited data from Wangdaizhijia, saying: in October 2015, the monthly online lending volume of Dianrong reached RMB 120 billion, four times the level achieved in October 2014. Dianrong has 26 offices in China, 300,000 active lenders and generates around RMB 1 billion in new loans monthly.
Dianrong is a well-known online lending platform and an industry leader with a technological edge over its competitors. Since its launch online in 2013, Dianrong has gained recognition and support from capital markets and traditional financial institutions. In August 2015, Dianrong completed its Series C round of financing led by Standard Chartered Private Equity and raised USD 207 million, setting a record for the largest single investment in the industry up to that time.
At the Lang Di Fintech conference that took place in China in July this year, Soul Htite, the founder of Dianrong, announced that the company would invest considerable resources into the research of blockchain technology in order to apply it to the discovery of quality assets.
Regarding the future of the FinTech industry, including P2P lending, the US Department of Commerce summarized, “The emergence of financial technology companies will reshape and improve finance by cutting costs and expanding access to financial services.”