Recently, some Chinese netizens have found that “Jiebei” within the Alipay app is now “Credit Loan,” showing that the services are now explicitly provided by banks. The quota and interest rate are independently examined and approved by the financial institution, and the loans are issued by the institution.
Alipay responded that Jiebei is in brand isolation. The services provided by Chongqing Ant Consumer Finance Co., Ltd. remain the name as Jiebei, which is now an exclusive brand of the company. Meanwhile the credit services independently provided by banks and other financial institutions show up as Credit Loan, clearly suggesting it is the information of financial institutions, and distinct from Jiebei.
The credit amount and interest rate of credit loans are dynamically approved and decided by the service provider according to the user information, and are not affected by the brand isolation. The brand isolation doesn’t interfere with users’ service experience, and the core processes such as opening an account, auditing, interest and so on will not change.
In April this year, the People’s Bank of China, China Banking and Insurance Regulatory Commission Commission, China Securities Regulatory Commission, State Administration of Foreign Exchange and other financial management departments jointly interviewed Ant Group and announced the rectification plan. The plan first corrects unfair competition in the payment business, gives consumers more choices of payment methods, and disconnects Alipay from other financial products such as “Huabei” and “Jiebei.”
Ant Group also announced its self-discipline guidelines for digital financial platforms, including five sections: financial management, insurance, consumer credit, loans for small and micro operators and “sesame credit.” It emphasizes that the platform should ensure data security, recommend rational loans, crack down on induced marketing, protect user privacy and other duties. The platform should establish strict institutional access and retreat mechanisms, accept social supervision and open complaint channels.
In September this year, Huabei was connected to the People’s Bank of China’s credit information. In an announcement issued on September 22, Huabei said: Chongqing Ant Consumer Finance Co., Ltd., to which Huabei belongs, as a licensed financial institution listed together with other banks and supervised by China Banking and Insurance Regulatory Commission, its service record information should be included in the credit information system, like bank loan information. According to the announcement, Huabei has introduced a number of financial institutions to provide services.