OREANDA-NEWS. January 26, 2015. The first consumer company controlled by a joint-stock commercial bank in China – Industrial Consumer Finance Ltd. (hereinafter referred to as “Industrial Consumer Finance”) announced its establishment in Quanzhou, becoming the first consumer finance company, which was opened under approval, in the banking industry.

Not only does it serve as a sign that the integrated business domain of Industrial Bank (IB) has extended to the area of consumer finance, but also a sign that Quanzhou Comprehensive Financial Reform Pilot Zone has made significant achievements. With two private enterprises holding its shares, the company is also considered as an icebreaker for the mixed ownership reform in the finance industry.

With the registered capital of RMB 300 million, Industrial Consumer Finance is registered in Quanzhou, Fujian. It is established under the main contribution of IB and the joint contribution of Quanzhou Commercial Corporation, Xtep (China) Co., Ltd., and Fucheng (China) Co., Ltd. Specifically, IB makes a contribution of RMB 198 million, accounting for 66%, and Quanzhou Commercial Corporation a contribution of RMB 72 million, accounting for 24%, while the contributions made by Xtep and Fucheng, the two private enterprises, account for 5% respectively. It is reported that it only took two months for the company to get the approval of the CBRC for its preparation to its official unveiling.

At the unveiling ceremony, Vice President Chen Jinguang of IB, said, networked finance has become an irreversible trend for the development of conventional finance. After establishment, Industrial Consumer Finance will commit itself to developing internet-based and off-line personal consumption credit businesses. In combination with the unique advantages of consumer finance, such as low single credit line, fast approval speed, no requirement of mortgage and guarantee, flexible service models and short loan term, it will, relying on the internet, provide personal customers with professional, efficient and superior consumer finance services by way of innovation in channel, big data marketing, and innovation in financial products, and build an internet finance company “based on data and innovation, with leading mechanisms and systems".

As the controlling shareholder, IB will lend full support to the building and development of Industrial Consumer Finance Ltd., bring into play the integrated and group-based advantages of the parent company to provide support actively in the areas of funds, human resource and technology, and give sufficient assistance in areas including product development, risk management, and crossed marketing, etc.

For the establishment of Industrial Consumer Finance, Quanzhou Municipal People’s Government has given active support and placed high hopes. Zheng Xincong, Mayor of Quanzhou Municipal People’s Government, attended the establishment ceremony and unveiled the nameplate for the company jointly with President Li Renjie of IB. As the third state-level comprehensive financial reform pilot zone, Quanzhou boasts flourishing private economy all along. In 2013, it was included by the CBRC into the pilot cities for consumer finance companies, of which it is the only one of the prefecture level. “The establishment of Industrial Consumer Company is an important achievement of Quanzhou Comprehensive Financial Reform Pilot Zone”, indicated Chen Canhui, Vice Mayor of Quanzhou Municipal People’s Government.

IB has established 100 branches and 856 sub-branches in the major economic centers around China, with nearly 2,000 business outlets including community banking outlets. Now, with a number of subsidiaries and affiliates, including Industrial International Trust, Industrial Financial Leasing, Industrial Fund, Industrial Wealth Management, Industrial Consumer Finance and Industrial Asset Management, IB has grown into a modern financial service group focusing on the principal banking businesses and covering trust, lease, fund, assets management, and consumer finance, extending its integrated business domain continuously.

Based on analysis, insiders believe that, benefiting from the policy environment of Quanzhou Comprehensive Financial Reform Pilot Zone and the pilot city for consumer finance companies and relying on the platform of IB as an integrated financial group and the advantages of its different shareholders in their business areas, Industrial Consumer Company is hopeful to bring into the play the advantages of “resource sharing” to the largest extent, meet the credit needs of more consumers characterized by “ short term, low value, no guarantee and no mortgage, and become a new force that cannot be ignored in the fields of consumer finance and internet finance.