Dutch Bank ING dives back into alternative lending

BI Intelligence

Dutch bank ING took a stake in WeLab, an alternative consumer lender in China and Hong Kong, as part of WeLab’s $160 million Series B funding round. WeLab, which launched in mid-2013, services 2.5 million customers and saw a ten-fold increase in loan disbursements in 2015, according to Finextra. ING is considering starting a partnership with WeLab in its own markets, according to CEO Ralph Hamers.

ING is advancing further into the alternative lending industry, which is growing rapidly across the world.

• ING took similar steps with Kabbage, a small business alternative lender, in 2015.The bank joined a $135 million funding round for Kabbage, and soon after, announced a small business lending program in Spain leveraging Kabbage’s platform.
• ING is committing to fintech to become more competitive. That’s because, according to the firm, the WeLab investment increases its pace of innovation. It also allows ING to offer a wider variety of services in-house, which could make it competitive with smaller startups that may offer increased convenience and more favorable interest rates to borrowers.
• It’s likely we’ll see more such collaboration in the future. BI Intelligence predicted that 2016 will bring more partnerships between banks and smaller, digital-based finance startups, largely because of the technology these startups bring to banks and the capital and reach banks can offer back to them.

P2P lending has proved to be a winning formula in the US, Europe, and China. China is driving much of this growth, having represented the lion’s share of total global loan volume in 2015. The Chinese industry reached 982 billion yuan ($149 billion) in originated loans in 2015, according to Deal Street Asia. That number marks nearly a four-fold increase over the 2014 total of 252.8 billion yuan ($38.3 billion). For context, WeLab facilitated $1.4 billion in loans last year.

This story was originally sent to professionals just like you in this morning’s PAYMENTS INSIDER Newsletter by BI Intelligence, a subscription research service from Business Insider. Get 14 days risk free »

Interested in getting in-depth analysis on this topic and others like it? Here are a few ways to access our exclusive research:

1. Purchase & download comprehensive research reports from our research store. >> Purchase & Download Reports Now
2. Try our INSIDER Newsletters risk-free. Every morning the BI Intelligence team will deliver you a daily newsletter covering everything you need to know in your digital industry. >>Start Now Risk-Free
3. Subscribe to an All-Access pass to BI Intelligence and gain immediate access to ALL of our expertly researched reports. As an added bonus, you’ll also gain access to all future reports and daily newsletters to ensure you stay ahead of the curve and benefit personally and professionally. >>Learn More Now

BI Intelligence

PS. Did you know…

Our BI Intelligence INSIDER Newsletters are currently read by thousands of business professionals first thing every morning. Fortune 1000 companies, startups, digital agencies, investment firms, and media conglomerates rely on these newsletters to keep atop the key trends shaping their digital landscape — whether it is mobile, digital media, e-commerce, payments, or the Internet of Things.

Our subscribers consider the INSIDER Newsletters a “daily must-read industry snapshot” and “the edge needed to succeed personally and professionally” — just to pick a few highlights from our recent customer survey.

With our full money-back guarantee, we make it easy to find out for yourself how valuable the daily insights are for your business and career. Click this link to learn all about the INSIDER Newsletters today.