The consumer finance lending sector is undergoing a profound consolidation this year, driven by stricter compliance standards. This has been triggered by sustained regulatory pressure. On March 13th, the National Financial Regulatory Administration held meetings with the operators of five platforms: Fenqile, Qifu Jietiao, Niwodai, Yixianghua, and Credit Fly. In March and April, new regulations were issued, including the "Provisions on Disclosure of Comprehensive Financing Costs for Personal Loan Business" and the "Administrative Measures for Online Marketing of Financial Products," tightening compliance requirements around fee disclosure and online marketing.
This was followed by dismal first-quarter earnings reports. US-listed lending platforms collectively suffered declines in both revenue and net profit. Among them, Jiayin Technology turned from profit to a net loss of 61.7 million yuan for the quarter. Yiren Digital (NYSE: YRD) posted a massive loss of 495 million yuan, compared to a profit of 248 million yuan in the same period last year.
Adding to the turmoil were a series of risk incidents. In May, CreditEase announced a "voluntary exit" for its fixed-income-like products under brands like Ruicheng, affecting its listed entity, Yiren Digital. On June 29th, police in Yingkou, Liaoning, reported they had formally opened an investigation into Juzi Shuke. This lending platform, with cumulative transaction volume nearing 130 billion yuan, saw its apps like "Juxiaohua" and "Yikoudai" experience widespread service outages and loss of customer service contact from June 24th, leading to user repayments being withheld, causing unwarranted defaults and credit blacklisting. Around the same time, the medical aesthetics installment giant Jike Group received a consumption restriction order from a Guangzhou court, limiting high-consumption activities for the company and its legal representative. The group had already been subject to a 342 million yuan enforcement order by the Guangzhou court in January.
Major Shakeup in Partner Networks
Under the dual pressures of regulatory tightening and risk mitigation, the lending partner networks of licensed consumer finance companies are experiencing a significant reshuffle. On July 6th, 01 Think Tank compiled data on the lending partners of 31 licensed consumer finance companies. Compared to the previous analysis from April 20th, 2026, 22 companies saw changes in their partners—115 partnerships were terminated, 48 were newly added, resulting in a net reduction of 67 partnership seats.
Overview of the Landscape
The table below provides a panoramic view of the lending partners for these 31 companies. The "Change" column shows the net increase or decrease for this period; a positive number indicates new additions, a negative number indicates terminations, and "0" indicates offsetting changes. Ningbo Bank Consumer Finance (-17), Jimeixin Consumer Finance (-13), Xiaomi Consumer Finance (-10), Maishang Consumer Finance (-9), and Jincheng Consumer Finance (-8) were the most active in trimming their lists this round. Notably, Maishang Consumer Finance terminated 9 partnerships with zero additions, showing the most cautious approach, while Haier Consumer Finance terminated 4 but added 10, reflecting a completely different strategy.
In terms of existing partnerships, Zhongyuan Consumer Finance, Haier Consumer Finance, and Xiaomi Consumer Finance each have over 30 partners, ranking top three in the industry. Conversely, Nanjin Faba Consumer Finance, Jincheng Consumer Finance, and Ningbo Bank Consumer Finance now have fewer than 10 partners, indicating a significant contraction. However, not all companies are shrinking; Haier Consumer Finance added a net 6, and Xingfu Consumer Finance added 1. The essence of this adjustment is "reshuffling" rather than simple "reduction," with both entries and exits painting the true industry picture.
Partners Exiting the Scene
Among the 115 terminations, three institutions were each removed from the partner lists of six consumer finance companies: Shuhe Technology, Weixin Jinke, and Juzi Shuke. Shuhe Technology was removed by Haier Consumer Finance, Maishang Consumer Finance, Industrial Consumer Finance, Ningbo Bank Consumer Finance, Xiaomi Consumer Finance, and Ping An Consumer Finance. Weixin Jinke disappeared from the lists of Shaanxi Changyin Consumer Finance, Jincheng Consumer Finance, Jimeixin Consumer Finance, Industrial Consumer Finance, Xiaomi Consumer Finance, and Ping An Consumer Finance. Juzi Shuke was removed by Zhongyuan Consumer Finance, Hubei Consumer Finance, Jinshang Consumer Finance, Jimeixin Consumer Finance, Ningbo Bank Consumer Finance, and Xiaomi Consumer Finance. All three are major lending platforms with loan balances in the tens of billions, some having reported significant losses or being under investigation, making their collective removal a strong signal.
Following closely was Yiren Digital, removed by four consumer finance companies, likely related to recent risk events. The termination list also includes familiar names like Zhongli Shuke, Vipshop, iQiyi, and Credit Fly, each removed by three consumer finance firms. These entities primarily provide traffic and customer acquisition, lacking independent technological capabilities and risk control systems. Under new lending regulations that emphasize financial institutions' primary responsibility, their value is being reassessed.
Jimeixin Consumer Finance and Ningbo Bank Consumer Finance each terminated 17 partnerships, the most aggressive in "slimming down." Xiaomi Consumer Finance terminated 15, and Jincheng Consumer Finance terminated 11. Maishang Consumer Finance terminated 9 without adding any new partners, adopting the most prudent stance.
New Entrants Gaining Ground
While terminations accelerated, new players also entered. Among the 44 new additions, the biggest winners were affiliates of major internet companies. ByteDance-affiliated entities led with 7 new additions. Through entities like Shenzhen Mianbao Xingchen Technology, Mianbao Haohai Technology, and Zhongrong Micro-loan, ByteDance's lending arms entered the partner lists of five consumer finance companies: Haier, Xingfu, Jincheng, Jimeixin, and Ningbo Bank. JD.com (NYSE: JD) affiliates followed with 5 new additions. Through Suqian Junteng and Yunhan Technology, JD.com-affiliated lending institutions were newly added to four consumer finance companies: Haier, Shaanxi Changyin, Jincheng, and Xiaomi Consumer Finance.
Ant Group affiliates and Tencent-affiliated entities received 4 and 2 new additions, respectively. Combined, the four major internet company-affiliated lending firms accounted for 23 new additions, or 25% of the total. Against an overall industry contraction, these giants are gaining more access opportunities due to their strengths in customer acquisition, technological infrastructure, and risk control systems. Stricter regulation benefits leading players while squeezing out smaller ones. Their cooperation with licensed consumer finance companies represents a synergy of licenses—consumer finance provides low-cost funding, while the tech giants provide traffic and risk control.
An interesting trend in the new additions is the "mutual recognition" among licensed financial institutions. WeBank was added by Jimeixin Consumer Finance; Ant Consumer Finance was added by Ningbo Bank Consumer Finance; Caifutong Micro-loan was added by Ningbo Bank Consumer Finance; Huaxin Trust was simultaneously added by Industrial Consumer Finance and Ningbo Bank Consumer Finance; and Haier Consumer Finance itself was added as a partner by China Post Consumer Finance. Under compliance pressure, "licensed-to-licensed" cooperation is becoming a risk-averse choice, as due diligence is naturally easier and issues can be resolved within the regulatory framework.
Another notable trend is the expansion into auto finance as a new scenario. Haier Consumer Finance added three auto finance institutions in one go: Changan Xinsheng, Suzhou Changyixing, and Zhonglian Huijie. Zhongyuan Consumer Finance added Lianzhong Youche; Shaanxi Changyin Consumer Finance added Longhuan Huifeng; Xiaomi Consumer Finance added Shanxi Dachang Technology, having also added four leading auto finance companies in April. Extending consumer finance into big-ticket purchase scenarios like autos often involves more authentic scenarios, clear purposes, and relatively controllable asset quality.
Diverging Strategies and Assessments
A particularly intriguing aspect of this reshuffle is the polarizing phenomenon where some institutions were both terminated and newly added by different companies. For example, while Shuhe Technology was terminated by six consumer finance firms, it was newly added by Shaanxi Changyin Consumer Finance. Qifu Technology was terminated by three but added by Haier Consumer Finance. ByteDance-affiliated entities were terminated by Ningbo Bank Consumer Finance but were newly added six times by five other consumer finance companies. Xiaoying Technology was terminated by Ningbo Bank Consumer Finance but added by three others. This reflects significant differences in how various consumer finance companies assess the same lending partner. There are no absolutely "good" or "bad" institutions, only those "suitable for us." The new lending regulations grant consumer finance companies greater autonomy in selection, but the standards for using this discretion vary widely.
Another noteworthy phenomenon is "adjustment" rather than outright "termination." For instance, Mengshang Consumer Finance and Jincheng Consumer Finance handled Shanghai Jike Group by replacing the defaulting entity "Shanghai Jike Intelligent Technology Group Co., Ltd." with its affiliate "Shanghai Jiying Technology Co., Ltd." This is nominally a change of partner entity but实质上 is risk isolation. However, whether such "shell-switching" truly isolates risk remains to be seen.
Ongoing Transformation
The fact that terminations far outnumber additions indicates an overall industry tightening. However, the direction is not a blanket approach but a selective "quality improvement"—cutting high-risk, low-qualification partners while introducing major tech firm affiliates and licensed partners. More than nine months into the formal implementation of the new lending regulations, "list-based management" is moving from form to substance. Consumer finance companies are no longer satisfied with nominal compliance but are actively voting with their feet.
Concentration at the top is intensifying: ByteDance, JD.com, Ant, and Tencent collectively gained 16 new additions, while smaller lending platforms face pressure to be removed. The value of scenario-based lending is also being reassessed. The concentrated removal of traffic platforms like iQiyi and Vipshop, coupled with the expansion into auto finance, indicates that consumer finance companies are no longer paying for "pure traffic." Future assessments of lending partnerships will shift from "traffic volume" to a comprehensive consideration of "scenario + risk control + compliance." This reshuffle is far from over.
Comments