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Loans from a Social Network? China's WeChat App Moves into Finance

en.xinfinance.com
Here at Social Songbird we have often commented on Facebook's attempts to take over in every sector the world has to offer. Starting out as a social networking site, they now have a hand in everything from virtual reality to internet provision. Although, they're not the only social network to delve into unexpected fields.

WeChat, China's largest social network with a user base of over 600 million people, have decided to start offering loans of up to $30,000, facilitated by online bank WeBank. As you can probably guess from the name, WeBank are backed by Tencent, who hold a 30% share in the banking service alongside their ownership of WeChat, which makes the announcement a little more understandable.

Ditching the traditional credit check, the loan service uses not only bank account information but also social network history in order to judge whether or not you are eligible for credit, making the decision in a matter of moments. Simple payments such as how much you spend on taxis and restaurants will be taken into account as they feature in WeChat's e-commerce functionality, as well as any number of micro-transactions and large payments alike. The loans, which can be paid off in instalments spanning up to 20 months, start at an interest rate of 0.05% per day.

It's unknown at this point whether this marks to beginning of a push into other markets from Tencent and its subsidiaries or if they will be happy to stop while they're ahead.


Sam Bonson

Sam is an aspiring novelist with a passion for fantasy and crime thrillers. Currently working as Editor of Social Songbird, he hopes to one day drop that 'aspiring' prefix. Follow him @SamAtSMF

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Loans from a Social Network? China's WeChat App Moves into Finance Reviewed by Sam Bonson on Monday, September 14, 2015 Rating: 5

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