The China Banking Association: The loan balance of China's consumer finance companies has exceeded one trillion yuan.

Xinhua News Agency, Beijing, June 25 (Reporter Li Yanxia) - A report recently released by the China Banking Association reveals the remarkable growth and development of China's consumer finance industry in 2023. By the end of 2023, the asset scale and loan balance of China's consumer finance companies both achieved leapfrog growth, reaching 1,208.7 billion yuan and 1,153.4 billion yuan respectively, with year-on-year growth rates of 36.7% and 38.2% respectively, marking the further release of the vitality and potential of the consumer finance market.

The "China Consumer Finance Company Development Report (2024)" deeply analyzes the key role of consumer finance companies in promoting the transformation and upgrading of residents' consumption. These companies have fully utilized their advantages as specialized small consumer financial institutions, quickly developing and optimizing scenario financial products, and promoting the deep integration of consumption scenarios with financial products. This integration not only provides consumers with more convenient and personalized financial services but also effectively promotes the recovery and growth of consumption demand.

The report also points out that consumer finance companies have made significant progress in business management and cost control. By continuously improving their management capabilities, these companies have successfully reduced operating costs and product pricing, thus providing consumers with more favorable financial services. In 2023, consumer finance companies reduced interest for 1.16689 million customers by 1.661 billion yuan and reduced fees for 895,000 customers by 212 million yuan. These measures not only reduced the financial burden on customers but also enhanced consumers' trust and satisfaction with consumer financial products.

In addition, consumer finance companies have also made active efforts in risk management and compliance. By strengthening internal control and risk assessment mechanisms, these companies can provide more stable and reliable financial services to consumers while ensuring financial security. This strategy of balancing risk and service is conducive to the sustainable development of the consumer finance industry.

With the continuous advancement of technology, consumer finance companies are also actively embracing digital transformation. Using advanced technologies such as big data and artificial intelligence, these companies can more accurately analyze consumer needs and provide more personalized financial products and services. At the same time, digital means also make financial services more convenient, allowing consumers to easily obtain and use financial services through mobile devices.

Under the current economic situation, the development of consumer finance companies is of great significance for stimulating domestic demand and promoting economic growth. They provide flexible and diverse financial products to meet the needs of different consumer groups, especially among young consumers, consumer financial products are favored for their convenience and accessibility. In addition, with the continuous improvement of residents' income levels and the transformation of consumption concepts, consumer finance companies are expected to further expand their market share in the future.

Overall, China's consumer finance industry has achieved remarkable results in 2023, not only in terms of rapid growth in asset scale and loan balance, but also in active progress in service innovation, risk management, and digital transformation. Looking forward to the future, with the continuous growth of residents' consumption demand and the continuous development of financial technology, consumer finance companies are expected to play a greater role in promoting consumption upgrades and economic transformation. At the same time, regulatory authorities should also strengthen the supervision of the consumer finance industry to ensure the healthy and stable development of the industry and protect consumer rights and interests.

Through the above analysis, we can see that the development of consumer finance companies has not only had a positive impact on individual consumers but also on the entire economic system. With the continuous maturity and innovation of the industry, it is expected that consumer finance will continue to be an important force in promoting the sustained and healthy development of China's economy.