It’s the latest and boldest move into personal finance by Alibaba, which is China’s biggest ecommerce company. It comes two years after it rolled out a personal wealth fund called Yu’e’bao
Alibaba and its affiliate firm Ant Financial this afternoon launched MyBank, a new online bank for China. The new bank is “not for the rich, but for the little guys,” said executive chairman Eric Jing. With Yu’e’bao focusing on savings – promising higher interest rates than offered by China’s state-dominated banks – Mybank will concentrate of loans. Alibaba said today that Mybank is “dedicated to provide inclusive and innovative financial solutions for individuals in both urban and rural areas and small and micro enterprises.” Challenging startups too Mybank will offer loans up to RMB 5 million (around US$800,000). It also promises to offer smaller loans than regular banks normally would. That’s because Mybank’s “cloud-based model requires much lower operational costs than the traditional brick-and-mortar banking model,” explained Jing.