Date
18 November 2017

Risks differ for traditional, online banks, paper says

The rise of online banks has put traditional banks on notice to expect to tougher competition, but the two face different risk controls because of the differences in their business, Liu Mingkang {劉明康}, former head of the China Banking Regulatory Commission wrote in Caixin’s Century Weekly. While traditional banks focus on customers with big funding needs and must review loans before and after they issue them, online banks most often do business with small firms, sometimes based only on credit records obtained online. But Liu said both kinds of lenders need to address information security, and the first step is to clearly define what personal information should be protected.

– Contact HKEJ [email protected]

TL/AC/SK

 

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