Xiaomi Group is consolidating its consumer finance operations in order to satisfy tighter requirements from Chinese regulators.
Chongqing Xiaomi Consumer Finance (重庆小米消费金融) has officially taken over the personal lending operations of Airstar ( 天星数科), according to sources from Airstar speaking to state-owned media.
Airstar previously went by the name Xiaomi Digital Science (原小米数科), and bills itself as the digital technology services platform of Xiaomi Group.
The China Banking and Insurance Regulatory Commission (CBIRC) gave its approval to the establishment of Xiaomi Consumer Finance in May 2020. Xiaomi Communications Co., Ltd. and Chongqing Rural Commercial Bank are both 50% owners of the consumer finance platform.
The consolidation of Xiaomi’s consumer finance operations comes following greater pressure from Chinese regulators on the fintech sector, and the requirement that all forms of financial activity in China be licensed.
The pressure prompted fintech giant Ant Group to transfer its consumer finance brand Huabei (花呗) to its consumer finance subsidiary Ant Consumer Finance in November 2021.