Ant Financial’s MYBank Commits to Being “Idiotic” about Financial Inclusion Following Low Profits in 2018
Online lender MYBank has attributed its poor profit performance in 2018 to efforts to expand financial inclusion for micro and small enterprises (MSE).
According to its annual report released on 30 April MYBank saw net profits of 670 million yuan in 2018, for one of the lowest readings amongst Chinese banks.
MYBank’s new president Jin Xiaolong (金晓龙) said that earnings and profits have never been the main goal for MYBank, and that since its inception its main focus has been to effectively serve micro and small enterprises in order to resolve their “pain points” and problems.”
“If we say that with profits almost at the bottom, continuing to do this kind of thing is idiotic, then we will continue to be an ‘idiotic bank,'” said Jin according to a report from Sina.
“Our goal was originally to be the bank that services the largest number of micro and small enterprises with the smallest profits.”
According to Jin as of 30 April MYBank and its cooperative partners have served over 16 million MSE customers, the majority of which are “street side businesses” that comprise a huge amount of China’s private economy.
“For each loan of 10,000 yuan that we give, we can bring shops earnings of 30,000 – 50,000 loans.
“According to a survey from the National Bureau of Statistics, each small-enterprise can create employment for 7 – 8 people, while each individual industrial and commercial entity can create employment for 2.9 people.”
Launched in June 2015 with fintech giant Ant Financial as a key shareholder, MYBank is China’s first commercial bank whose core systems are cloud-based, as well as one of the first batch of five private banks to obtain approval for establishment from Beijing.