Recently, the China Banking Association released the China Consumer Finance Company Development Report (2025) (the "Report"). This is the sixth year that the China Banking Association has issued an annual report to the public on the development of consumer finance companies. The Report comprehensively reflects the overall business conditions of consumer finance companies in 2024, systematically summarizing the specialized and differentiated development characteristics of consumer finance companies and fully demonstrating the responsibilities and duties of consumer finance companies through informative data and abundant case examples.
Han Kun has played a key role in preparing the Report, acting as the sole law firm responsible for the compilation of the annual report for six consecutive years, from 2020 to date, a demonstration of the firm's commitment to facilitating the development of the consumer finance sector.
Chapter 1: Developing consumer finance to boost consumption
Consumer finance companies have resolutely implemented the major decisions and deployments of the Central Committee of the Communist Party of China and the State Council. Taking it as their responsibility to boost consumption, they have increased the supply of consumer credit to better meet the financial service demands in the consumption sector. By the end of 2024, the total assets and outstanding loan balances of consumer finance companies reached RMB 1,384.859 billion and RMB 1,345.603 billion, respectively, representing year-on-year growth of 14.58% and 16.66%. With steady expansion in business scale, these companies have become an important financial force in boosting consumption.
Chapter 2: Differentiated customer targeting to practice inclusive finance
As a necessary and beneficial supplement to the financial system, consumer finance companies adhere to a customer positioning focused on underserved markets and long-tail clients, following a differentiated development path. They fully leverage the characteristics of specialized small consumer financial institutions, prioritizing support for the reasonable consumer credit needs of groups such as new urban residents and county residents. In 2024, consumer finance companies provided inclusive financial services with diverse products and higher accessibility to 85.43 million county-based customers.
Chapter 3: Accumulating technological achievements to advance digital transformation
In accordance with the national "14th Five-Year Plan" for the Development of the Digital Economy, consumer finance companies have seized the historical opportunity of the modern information technology revolution. They increased investment in technology research and development, vigorously promoted the digital transformation of consumer finance, continuously expanded business coverage, and improved service quality, operational efficiency, and customer experience. By the end of 2024, consumer finance companies had obtained a total of 1,242 technology patents, providing strong technical support for their digital transformation.
Chapter 4: Putting people first and actively undertaking social responsibility
Consumer finance companies adhere to a people-centered value orientation and adopt various flexible measures to assist customers in financial difficulty. According to statistics, in 2024, 25 companies reduced interest payments by RMB 3.219 billion for 1.8766 million customers; 15 companies deferred repayments totaling RMB 2.439 billion for 128,600 customers; and 27 companies maintained the credit records of 24,800 customers. Meanwhile, consumer finance companies actively fulfilled their social responsibilities by contributing RMB 6.1234 million in assistance funds, supporting the consolidation of poverty alleviation achievements and contributing to rural revitalization.
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