South China Morning Post reports the YIrendai, majority owned by CreditEase, is looking to cross-sell its nearly 1m active users with an online management platform selling both funds and insurance online. The company believes there will be likely consolidation among the 2k p2p lenders, and expects those with the scale to enforce new tougher, regulations around the industry will be the ones to survive.
Yirendai, China’s largest peer-to-peer lending platform, is looking to raise its profile even higher, with an expanded product offering, the company’s chief executive Fang Yihan has told the South China Morning Post, shrugging off any worries about a regulation-induced slowdown in the industry. The biggest challenge now facing China’s burgeoning P2P lending sector is compliance. New rules governing the industry will come into force in August, and according to available drafts, these will impose a limit of 200 000 yuan (US$29,400) on lending to individual borrowers, require the lenders to carry out stricter background checks on all clients, and establish strong contractual relations with custodian banks. Shares in Yirendai, which is listed on the New York Stock Exchange, plunged 22 per cent on August 24 last year, the day the rules were announced.