BEIJING, March 31, 2017 /PRNewswire/ -- CredEX Fintech was invited to participate in a roundtable forum moderated by Peter Renton, founder of LendIt USA, the world's largest show in lending and Fintech. Jo Ann Barefoot, former Deputy Comptroller of the Currency (OCC) and a professor at Harvard University, also joined the panel to discuss Fintech innovations and developments in China and the U.S.
During the forum, CredEX shared its unique business model as a link between banks and individuals in comparison with the P2P lending model. When referring to "How CredEX disrupts traditional P2P lending," Mr. Zhou Liyong, Chief Risk Officer of CredEX Fintech, said: "The P2P model is facing challenges from regulation in China. CredEX Fintech's unique business model supports loan originations rather than a balance sheet. In other words, we don't touch the loan funding directly. We provide risk management technology and a platform that stands between banks, small businesses and consumers. We are an intermediary between financial institutions and individual borrowers to facilitate pure online originations of large size loans. We also adopted a 'Repay-as-You-Want' mode of repayment, which supports not only adjustment of repayment periods, dates and amounts without any fines."
Peter Renton, Chairman of LendIt USA, commented: "I have come to know CredEX through their involvement with LendIt USA this year. I have visited their office in Shenzhen and we hosted them at our recent conference in New York. The more I have learned about CredEX the more impressed I have become. Their instant credit decisions and the robust underwriting platform they have built has allowed them to become a leading Fintech company in China in a very short time. Unlike most Fintech companies they are 100% app-based, they are funded by banks and they are doing more than US$1B in loans annually. They represent the future of lending."
CredEX and Professor Jo Ann Barefoot both shared their views regarding the regulation environment in China compared to the U.S. As the largest Fintech market in the world, China is influencing the U.S. and other countries in many ways. Due to fraud and dangerous funding models, P2P lending suffers from tightening regulatory oversight. For non-P2P models, the regulation is not very clear. Professor Barefoot advocates that regulators also need to be as innovative as the Fintech industry to help the industry grow. When referring to "How CredEX adapts to China's tightening policy" Mr. Zhou said: "You must understand the government's policy very well to be a successful entrepreneur. Although China has an enormous banking system, it can't cover the majority of the SME and consumers. After intensive research on market regulations of the banking and P2P market, CredEX developed its unique model to provide risk management and IT services to banks, so banks will have the ability to tap into profitable businesses without increasing its risk exposure. Since CredEX is helping banks to connect with consumers more efficiently and innovate within regulatory perimeters, our government is very supportive." In contrast, the U.S. regulators are slower than other countries because multiple regulatory bodies need to coordinate and analyze the situation of the industry development before making any move.
CredEX also met with Professor Fernando Garcia from UC Berkeley at LendIt. Professor Garcia shared that he thinks CredEX could pursue opportunities in the U.S. market through serving the unbanked and Millennial communities. Garcia stated: "I think the next step for CredEX is to move to larger sized loans, either business loans or mortgage loans... there are a growing number of people [in the U.S.] who don't have bank accounts. We are trying to re-establish this model here in the United States [for the unbanked population]."
CredEX Fintech A mobile app for personal loans that supports borrowing and repayment anytime, allowing customers to borrow as much as RMB 300,000 (USD 40,000+) just within three minutes on their phone. CredEX Fintech tackles five key problems within the traditional global loans industry: difficulties in application, approval, money withdrawing, repayment, and re-borrowing. A closer look reveals that the prowess of CredEX Fintech is underpinned by its five disruptive innovations: the mobile app, supporting borrowing and repayment anytime, taking the lead in personalizing interest rate, the mobile Internet risk control system and a unique business model of connecting financial institutions with borrowers.