ADBC Inks Cooperative Agreement with MYBank
(23 September 2020 – China) Agricultural Development Bank of China (ADBC) and Alibaba-backed MYBank have entered into a strategic cooperative agreement, marking the first partnership between a policy bank and a digital bank in China.
Under the agreement the two parties will build upon their pre-existing cooperation in the areas of transfer loans and micro and small direct loans, expanding both the scope and area of these operations. Ant Financial is the online lenders largest shareholder with a 30 percent stake. MYBank has said that it aims to serve small businesses whose loan needs are less than CNY1 million (US$150,000).
MYBank first teamed up with ADBC in the Xiong’an New District a year ago. The digital bank pioneered the “310 model” for SME financing which offers a collateral-free business loan that takes less than three minutes to apply for on a mobile phone, less than one second to approve and requires zero human intervention. Using real-time payments data and a risk-management system that analyses more than 3,000 variables, Jack Ma’s five-year-old MYBank has lent over 2 trillion yuan (US$290 billion) to 16 million small companies after building up from Alibaba Small and Micro Financial Services, the predecessor of Zhejiang E-Commerce Bank, now known as MYBank.
The two banks will also deepen cooperation in areas including rural village finance, industrial finance, joint risk control and fintech, with the goal of further easing the problem of financing being expensive and difficult for Chinese micro and small enterprises.
“In the age of the digital economy, digital finance can and should be used for the good of society. Our vision is to leverage digital technology and enable our financial partners to use the ‘310’ model to empower traditional unbanked and underbanked SMEs such as roadside vendors, mom-and-pop stores, and small business operators who contribute significantly to job creation and the growth of the real economy” stated MYBank Chairman Simon Hu at an awards ceremony for 2019 Global SME Bank of the Year at the Global SME Finance Forum Awards.