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Jack Ma 's online banking is leading a quiet revolution in the way China grants loans to small businesses, tackling a bottleneck in credit that is slowing the biggest economy in the economy. Asia for decades.
Using real-time payment data and a risk management system that badyzes more than 3,000 variables, MYbank, a four-year-old loaner, lent 2,000 billion yuan ($ 290 billion) to nearly $ 16 million. small enterprises. Borrowers apply in a few clicks on a smartphone and receive money almost instantly if they are approved. The whole process takes three minutes and involves zero human banker. The default rate up to now: about 1%.
The financial technology boom that has made China the world's largest market for electronic payments is now changing how banks interact with the companies that account for most of the country's economic growth. While MYbank and its peers are processing a host of new data from payment systems, social media and other sources, they are becoming more comfortable with the small borrowers they had previously shunned. favor of giants belonging to the state.
For the Chinese economy, which has reached $ 13 trillion and has experienced the strongest growth since at least 1992, last quarter, the implications could be profound. Non-state enterprises – mostly small businesses – account for about 60% of growth, employ 80% of workers, and have been disproportionately squeezed by more than two years of government crackdown on fictitious lenders.
Related: Jack Ma: My life after Alibaba
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