# Ant Group starts to differentiate consumer loan business Jiebei from bank loans
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-11-08
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: Ant Group undertaking brand differentiation for consumer
Meta Description: China's Ant Group working on brand differentiation for Jiebei as part of restructuring efforts to comply with Chinese regulators. Find out more here.
URL: https://financedigest.com/ant-group-starts-to-differentiate-consumer-loan-business-jiebei-from-bank-loanshtml

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BEIJING (Reuters) – China’s Ant Group said on Monday that it is making efforts to “differentiate” part of its short-term consumer loan business Jiebei, as it pursues a Beijing-led restructuring aimed at reining in some of its freewheeling businesses.

Ant, the financial affiliate of e-commerce giant Alibaba Group, saw its $37 billion IPO derailed by regulators last year and has since been working to turn itself into a financial holding firm.

Local media on the weekend reported changes at Jiebei after Chinese regulators in April asked Ant to conduct a sweeping business overhaul, which includes folding its credit products Jiebei and Huabei, into a new consumer finance firm.

They also criticised Huabei and Jiebei for improper links between payment [services and financial](https://www.financedigest.com/wrapping-financial-services-in-a-security-blanket.html "Wrapping Financial Services in a Security Blanket") products, saying that these may have over promoted loan services to users.

The Shanghai Securities News reported on Sunday, citing borrowers, that the Jiebei platform had [made changes to show which loans](https://www.financedigest.com/home-equity-made-simple-things-to-know-before-applying-for-loans.html "Home Equity Made Simple – Things to Know Before Applying for Loans") were being provided by Chongqing Ant Consumer Finance Co, and which were provided by banks.

Jiebei is gradually working on brand differentiation,” an Ant Group spokesperson said, adding that consumer credit services provided independently by banks or other financial institutions will be presented on a [“credit loan”](https://www.financedigest.com/credit-union-loans-in-high-demand.html "Credit Union Loans in High Demand") page.

Ant did not elaborate on how much of its business would be affected by the [brand differentiation](https://www.financedigest.com/how-music-sound-can-help-financial-brands-differentiate-in-a-competitive-world.html "How Music & Sound Can Help Financial Brands Differentiate in a Competitive World").

Ant has been ordered by regulators to complete the branding restructuring of Huabei and Jiebei within 6 months after its consumer finance firm starts to operate, local media the [21st Century](https://www.financedigest.com/taking-the-pain-out-of-payments-for-the-21st-century-worker.html "TAKING THE PAIN OUT OF PAYMENTS FOR THE 21ST CENTURY WORKER") Business Herald reported earlier.

Ant’s consumer [finance unit won approval to begin operating in Chongqing city](https://www.financedigest.com/citi-halted-financing-for-trafiguras-nickel-deals-in-october-bloomberg.html "Citi halted financing for Trafigura’s nickel deals in October – Bloomberg") in June.

Huabei and Jiebei were used by around 500 [million people](https://www.financedigest.com/the-start-up-using-technology-to-help-the-20-million-people-in-britain-with-money-worries.html "The start-up using technology to help the 20 million people in Britain with money worries") in the 12 months to June 30, 2020, Ant said in its IPO prospectus.

In September, Ant’s virtual [credit card service Huabei begun to send its consumer credit data to a database run by China’s central bank](https://www.financedigest.com/explainer-what-are-credit-default-swaps-and-why-are-they-causing-trouble-for-europes-banks.html "Explainer-What are credit default swaps and why are they causing trouble for Europe’s banks?"), a key move for both the company and regulators as Beijing tightens its grip over the financial technology sector.

(Reporting by Cheng Leng and Brenda Goh; editing by Richard Pullin)


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