5 ms·

Where did you read about the content of the speech out of interest? The article linked is pretty vague and makes it sound like he just over-aggressively critici

by mcintyre1994 6y ago

Where did you read about the content of the speech out of interest? The article linked is pretty vague and makes it sound like he just over-aggressively criticised regulation and said there should be reform, which is just what every billionaire business owner says about the regulations in their space.

oefrha 6y ago
I haven’t seen a transcript or even an outline of the speech, but there were previous reports that went into a little more detail, e.g. also from Reuters, https://www.reuters.com/article/idUSKBN27J0D4 https://www.reuters.com/article/idUSKBN27J0D4: > The outspoken billionaire railed against the Basel Accords, a series of international regulations that require banks to hold a certain amount of capital, as outmoded for the modern era. He also accused Chinese lending institutions of having a “pawnshop” mentality of using collateral instead of advanced credit ratings and watchdogs of not knowing the difference between regulation and supervision. And on new regulations in draft stage to cover the current gray areas https://www.reuters.com/article/idUSKBN27I1WB https://www.reuters.com/article/idUSKBN27I1WB: > While it made no mention of Ant, the draft comes as regulators sharpen their focus on banks that heavily use micro-lenders or third-party technology platforms like Ant for underwriting consumer loans, amid fears of rising defaults and deteriorating asset quality in a pandemic-hit economy. I derived much of my understanding of Ant not from reporting, but rather, from talking to local sources who are more familiar with the matter. I’m on mobile now so won’t expand on this complex topic... However, if you know the Chinese language you can find plenty of criticisms of Ant’s personal credit/loan products (which, for instance, offer unsecured credit and loans to people with absolutely no income and/or collaterals, like college students, and coupled with aggressive marketing from online marketplaces including Alibaba’s Tmall, lead to hopeless debt cycles); probably less about risky business loans.
- Danieru 6y ago
  Since you might know the answer, I've been curious how delinquency is handled. When someone borrows and stops repaying do they get sued? Is the power of Ant's payment network so strong that getting banned is enough to keep people repaying?
  - rfoo 6y ago
    Usually no as it does not scale. They usually use several (third party) "debt collection" services which operate in a questionable way (I'd call it mafia-style). Examples of what they would usually do: - Call you 100 times per day. - Call you family and your friends and your colleague daily (via contact data collected by their apps) - Threaten (but not actually do unless you owe them a lot) to sue you, in a way maximizing your stress. - Visit your family in person and "politely" ask if they know you are in debt. Google "花呗催收" or "借呗催收" then use Google Translate if you want to dig into this.
    - eznzt 6y ago
      That also happens here in Europe...
      - NicoJuicy 6y ago
        I live in Europe ( Belgium) and that's bullshit. My dad had to receive money from someone who couldn't repeat their debts and there was an intermediate party that came to talk about everything and propose a plan.
        eznzt 6y ago
        Try to ignore that intermediate party and see what happens.
  - oefrha 6y ago
    As a sibling comment said, outstanding debt is sent to collections after a certain period, similar to how credit card debt (and all kinds of other debt) is handled in the U.S., and maybe in most parts of the world? Can’t comment on implementation details since thankfully neither my contacts nor I have experience with collections. (Btw, once upon a time, my Experian credit score dropped by like 150 points after a mysterious debt appeared on my credit report; turns out someone else’s debt was mistakenly put on my file. Luckily my name wasn’t also “mistakenly” sent to some collections agency. Definitely scared the shit out of me.)

oefrha 6y ago

I haven’t seen a transcript or even an outline of the speech, but there were previous reports that went into a little more detail, e.g. also from Reuters, https://www.reuters.com/article/idUSKBN27J0D4 https://www.reuters.com/article/idUSKBN27J0D4: > The outspoken billionaire railed against the Basel Accords, a series of international regulations that require banks to hold a certain amount of capital, as outmoded for the modern era. He also accused Chinese lending institutions of having a “pawnshop” mentality of using collateral instead of advanced credit ratings and watchdogs of not knowing the difference between regulation and supervision. And on new regulations in draft stage to cover the current gray areas https://www.reuters.com/article/idUSKBN27I1WB https://www.reuters.com/article/idUSKBN27I1WB: > While it made no mention of Ant, the draft comes as regulators sharpen their focus on banks that heavily use micro-lenders or third-party technology platforms like Ant for underwriting consumer loans, amid fears of rising defaults and deteriorating asset quality in a pandemic-hit economy. I derived much of my understanding of Ant not from reporting, but rather, from talking to local sources who are more familiar with the matter. I’m on mobile now so won’t expand on this complex topic... However, if you know the Chinese language you can find plenty of criticisms of Ant’s personal credit/loan products (which, for instance, offer unsecured credit and loans to people with absolutely no income and/or collaterals, like college students, and coupled with aggressive marketing from online marketplaces including Alibaba’s Tmall, lead to hopeless debt cycles); probably less about risky business loans.

Danieru 6y ago
Since you might know the answer, I've been curious how delinquency is handled. When someone borrows and stops repaying do they get sued? Is the power of Ant's payment network so strong that getting banned is enough to keep people repaying?
- rfoo 6y ago
  Usually no as it does not scale. They usually use several (third party) "debt collection" services which operate in a questionable way (I'd call it mafia-style). Examples of what they would usually do: - Call you 100 times per day. - Call you family and your friends and your colleague daily (via contact data collected by their apps) - Threaten (but not actually do unless you owe them a lot) to sue you, in a way maximizing your stress. - Visit your family in person and "politely" ask if they know you are in debt. Google "花呗催收" or "借呗催收" then use Google Translate if you want to dig into this.
  - eznzt 6y ago
    That also happens here in Europe...
    - NicoJuicy 6y ago
      I live in Europe ( Belgium) and that's bullshit. My dad had to receive money from someone who couldn't repeat their debts and there was an intermediate party that came to talk about everything and propose a plan.
      - eznzt 6y ago
        Try to ignore that intermediate party and see what happens.
- oefrha 6y ago
  As a sibling comment said, outstanding debt is sent to collections after a certain period, similar to how credit card debt (and all kinds of other debt) is handled in the U.S., and maybe in most parts of the world? Can’t comment on implementation details since thankfully neither my contacts nor I have experience with collections. (Btw, once upon a time, my Experian credit score dropped by like 150 points after a mysterious debt appeared on my credit report; turns out someone else’s debt was mistakenly put on my file. Luckily my name wasn’t also “mistakenly” sent to some collections agency. Definitely scared the shit out of me.)