WeBank, an online-bank owned by majority shareholder Tencent, has recently launched its first financial product – “micro loans”. The amount of the small loans product is set between RMB 20,000 to RMB 200,000 (US$3,225 to US$32,250) with daily interest rates set at 0.05%. The loan service does not require guarantees or collaterals, and is repayable at any time. Approval time required is reportedly around 15 minutes.
WeBank’s clients are currently selected by invitation only. The online bank can also be accessed through mobile devices and is connected to Tencent’s online payment service, QQ Wallet.
Tencent’s credit approval process relies mainly on big data gathered from the Internet including online information, assets, consumption habits, repayments, social network data and gaming habits amongst others. WeBank will also create credit rating reports based on users’ personal online data.