Alibaba spinoff Ant Financial became the latest private company to enter the Chinese banking business with todays launch of Mybank, an internet-only bank for customers and small businesses.
Mybank will function much like a traditional bank, taking deposits and making loans up to 5 million yuan (about $805,000). But its services are tied to customers Alibaba transactions, and it will reach them through an app.
Mybank takes no collateral from debtors. Instead, it looks at the financial data that customers and small businesses have accumulated on Alipay, Ants third-party payment service used by vendors and buyers on Taobao and Tmall to purchase items.
