Ant Group reorganizes its consumer loan business in Huabei
Huabei (Ant Check Later) of the Ant Group announced on Wednesday that Huabei will become an exclusive consumer loan brand under the name Chongqing Ant Consumer Finance. The new company will focus on the expense demand of small and medium-sized businesses.
Huabei initiated this brand segregation to implement regulatory requirements for consumer credit in full protection of consumer rights. So-called brand segregation is about clearly separating the consumer credit services provided by financial institutions and avoiding brand confusion.
Consumer loans fully funded by banks and other financial agencies will no longer be labeled as âHuabeiâ. Instead, these loans will be viewed as a âcredit buyâ (ä¿¡ç¨ è´) service that is directly independent from financial institutions. The names of these financial institutions will be indicated explicitly.
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The credit limit of the “credit purchase” should be independently verified and determined by the financial institution. The interest-free period of Credit Buying and Huabei is the same. Both services can only be used for consumption, not in cash, and will be reported to the national credit reporting system.