P2P service Yirendai tries to move up in the financial food chain by turning to wealth management. Most P2P platforms are not able to do so, says financial analyst Sara Hsu to the South China Morning Post. But Yirendai could be the exception, she adds.
The South China Morning Post:
“Most Chinese P2P companies are ill-equipped to expand into other financial services such as wealth management services,” said Sara Hsu associate professor at the State University of New York.
“However Creditease and its subsidiary Yirendai are better positioned to expand into other areas since they have very carefully developed, strong risk control practises already in place,” said Hsu.
“Similar to other large e-commerce players in China, such as Alibaba and Tencent, Creditease collects large amounts of data that it uses to analyse customer credit worthiness.”
Of course, wealth management is quickly turning into one of the most competitive areas of China’s finance industry, so as well as larger P2Ps, a number of other investment platforms, challenger banks, and international private banks are already targeting this space, as well as China’s traditional banks.
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