The mainland media reported that the Internet deposit industry is bound to usher in regulation. After the Ant Group shelved all the Internet deposit products, more and more Internet financial platforms followed, Baidu’s Du Xiaoman Finance, Tencent’s Tencent Money Pass, Ctrip’s Ctrip Finance App also all shelved Internet deposit products.
The report mentions that, from the relevant sources of Jingdong Finance, we learned that currently, according to the concern of the regulatory authorities for the Internet deposit business, Jingdong Finance APP has stopped adding new online Internet deposit products and stopping new users from buying related products, and has adjusted the stock of customers and business in a steady and orderly manner: related products will only be visible to users who have already purchased the products, and users who have already purchased related products will not be affected. In the future, Jingdong Finance will pay close attention to the relevant regulatory policies and guidance and implement them carefully.
The report points out that in recent years, it has become a new trend for mainland commercial banks, especially small and medium-sized banks, to launch deposit products with the help of Internet financial platforms. According to Sun Tianqi, director of the People’s Bank of China’s Financial Stability Bureau, adding up the banks currently displayed on 11 headline platforms, more than 50 banks are involved in deposits on sale, the vast majority of which are small and medium-sized banks, with most single-account deposits of RMB 500,000 or less.
Sun Tianqi said at the “Seminar on the Exploration and Application of Regulatory Technology in Digital Finance” in November that the Internet deposit business brings problems involving deposit marketing practices, illegal promotion of deposit insurance protection, local legal person banks breaking through geographical restrictions on business development, and challenges to liquidity management of small and medium-sized banks. And on December 15 at the Fourth China Internet Finance Forum, he proposed that Internet financial platforms to carry out such financial business is “driving without a license” illegal financial activities, should also be included in the scope of financial regulation.
Since then, many Internet companies have withdrawn their Internet deposit products.
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