Co-founded by Lending Club's Soul Htite, Dianrong is one of China's largest P2P lending platforms, offering lower borrowing costs, higher returns, at relatively low risk.
Why
High borrowing rates
Information asymmetry; expensive, archaic systems in banking practices lead banks to charge high interest.
SMEs are often unbankable
Chinese SMEs often face difficulty borrowing from banks as most of them don’t have collateral.
Banks need internet technology
Financial institutions need to invest in new technologies to attract customers, cut costs, boost profits.
Market
RMB 3 trillion
Forecast P2P loans in 2016; China has the world’s largest P2P market, which is seven times that of the US.
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