Online lending platforms in China have seen a decline in total transactions following dozens of closures.
Data from Rong360 indicates that the online lending sector posted 194.231 billion yuan in transactions in September, for a month-on-month decline of 2.24%.
The number of platforms in regular operation fell by 44 to 1873 in September, from 1917 the preceding month.
Bank-affiliated online lending platforms have been especially troubled, with Rong360 data indicating that 15 have suspended operation, or met with problems including difficulties withdrawing cash and “absconding.”
“For investors selecting an online lending platform, whether or not they provide online bank deposit management should only be one point of reference,” said Rong360 analyst Liu Yafeng (刘亚丰) to Economic Information Daily.
“While banks engage in preliminary risk assessments of platforms when connecting with them, this does not mean that the platforms chosen by banks are 100% safe.”