China Rapid Finance Limited (NYSE: XRF), one of China’s largest consumer lending marketplaces, announced on Tuesday it has formed a new strategic partnership with Chengdu Qiye Technology to offer services for institutionally-funded lending to small and medium-sized businesses. According to China Rapid Finance, the partnership marks another important milestone in its business transformation since withdrawing from the P2P lending business.
“Under the planned partnership, XRF will provide technology development and risk management services to Qiye through an operating subsidiary under its Cayman Company. The subsidiary is intended to become the Company’s fintech and service revenue driver in the SMB “Lend Aid” business. No retail funding will be used for this new business.”
China Rapid Finance also reported that this new business will combine XRF’s established and sophisticated technology for lending and risk management technology with Qiye’s marketing and customer channel expertise in order to help institutional lenders more effectively reach potential SMB borrowers. Speaking about the collaboration, Dr. Po Wang, Co-CEO of China Rapid Finance, stated:
“The Chinese government is actively promoting lending to SMBs, which makes this an attractive market opportunity for us. The foundation of our partnership is the current clientele of Qiye, which has already established a fast-growing SMB loan-aid business with institutional funding. China Rapid Finance strengthens the product offering via its pioneering financial services and risk management technology.”
Dr. Zane Wang, Chairman and Co-CEO of XRF, added:
“We believe this endeavor can create meaningful value for our shareholders as it drives expected revenue and profit growth. We are fully committed to transforming XRF away from P2P lending and toward broader fintech services in an orderly and responsible manner.”