The default rate remains stable but shows signs of decline. How does Ningbo Bank Consumer Finance earn market trust?

Ask AI · How can Ningbo Yin Financial Technology achieve a steady decline in bad debt rates through technology?

Produced by | Zhongfang Network

Reviewed by | Li Xiaoyan

Consumer finance serves as an important bridge connecting financial services with consumer needs, playing a crucial role in expanding domestic demand, serving the real economy, and meeting the diverse consumption needs of residents. As a licensed consumer finance institution approved by the National Financial Regulatory Administration, Zhejiang Ningbo Yin Consumer Finance Co., Ltd. relies on the strong capital strength and mature risk control system of Ningbo Bank, deeply engaging in the inclusive finance sector, adhering to compliance as the bottom line, supporting with technology empowerment, and focusing on consumer rights protection, to promote consumption upgrades and financial inclusivity. Recently, some complaint incidents have drawn market attention; against the backdrop of continued deepening industry regulation, Ningbo Yin Financial Technology and Ningbo Bank are adopting a problem-oriented approach to strengthen full-process management and promote the stable and sustainable development of consumer finance business.

As one of the 31 licensed consumer finance companies nationwide, Ningbo Yin Financial Technology has a registered capital of 3.6 billion yuan, is wholly owned by Ningbo Bank, and has a stable shareholder background with strong capital strength, making it a benchmark entity for compliant operations in the industry. Since its establishment, the company has adhered to its original intention of “finance for the people,” deeply implementing policies aimed at promoting consumption and safeguarding livelihoods, creating its self-operated product “Hui Ni Dai,” focusing on reasonable consumption scenarios such as daily resident consumption, home decoration, and education, providing convenient and efficient inclusive financial services to over 15 million customers. By 2025, the company’s total assets are expected to exceed 60 billion yuan, with bad debt rates consistently below the industry average, earning multiple honors such as “Annual Inclusive Finance Pioneer Enterprise” and “National High-Tech Enterprise,” actively fulfilling the responsibilities and commitments of licensed financial institutions.

As the parent company, Ningbo Bank has always prioritized compliance operations and risk control in business development. The personal consumer loan business, as a core segment serving livelihoods, adheres to the principles of “inclusive, compliant, and controllable.” As of the end of June 2025, the bank’s personal consumer loan balance reached 345.243 billion yuan, covering millions of individual customers and becoming an important financial force supporting resident consumption and activating market vitality. In terms of cooperative ecosystem construction, Ningbo Bank strictly follows regulatory requirements, cooperating with 134 internet loan service institutions, covering marketing customer acquisition, guarantee enhancement, post-loan management, etc., establishing a full-cycle cooperative management system of “access review, daily monitoring, dynamic assessment, and exit mechanism,” resolutely terminating cooperation with non-compliant partners to prevent business risks from the source.

Recently, the issues of collection and fee rates that have drawn market attention are not only common challenges in industry development but also key directions for institutional regulatory management. From an industry perspective, the consumer finance sector has a vast customer base and complex overdue scenarios, with some third-party partner institutions operating non-compliantly, easily leading to complaints and disputes. Ningbo Yin Financial Technology’s self-operated product “Hui Ni Dai” implements a compliant annual interest rate of 4%, significantly lower than the industry average, genuinely benefiting the public; in Ningbo Bank’s cooperative business, some assistive loan products have comprehensive rates close to the judicial protection upper limit, all strictly adhering to regulatory requirements without crossing the interest rate red line. In response to issues mentioned in some complaints regarding non-compliant third-party collections and information protection, Ningbo Bank has explicitly responded that it will strengthen full-process control of collections, strictly implement personal information protection regulations, and maintain zero tolerance for non-compliant collection practices to effectively safeguard consumers’ legal rights.

Consumer rights protection is the foundation of financial institutions. Ningbo Yin Financial Technology and Ningbo Bank consistently integrate consumer protection work into all business processes. Ningbo Yin Financial Technology has established a “two universals and three heads” consumer protection work mechanism, improving consumer protection reviews and information disclosure systems, exploring diversified dispute resolution approaches, and relying on the public welfare brand “Jinli Talks Consumer Protection” to conduct financial knowledge popularization activities and enhance consumers’ financial literacy. Ningbo Bank, with its comprehensive consumer protection system, has been awarded the title of “Outstanding Financial Consumer Protection Institution,” establishing a 7×24-hour customer service channel to quickly respond to customer demands and properly resolve business disputes. Regarding personal information protection, both institutions strictly follow the “Personal Information Protection Law,” standardizing processes for information collection, use, and storage, and preventing information leakage, thereby fortifying the security of customer information.

Technology empowerment is the core strategy for enhancing risk control quality and standardizing business operations. Ningbo Yin Financial Technology is increasing its investment in financial technology, utilizing big data and artificial intelligence technologies to build an intelligent risk control system covering the entire process from pre-loan, during loan, to post-loan, optimizing loan decision-making and anti-fraud models, accurately identifying risks, and improving bad debt recovery efficiency, effectively eliminating non-compliant operations from a technical standpoint. Ningbo Bank is relying on its digital risk control system to achieve full online and intelligent approval, disbursement, and post-loan management for consumer loans, reducing manual operational risks and enhancing business transparency. In terms of post-loan collections, both institutions are accelerating the improvement of their in-house collection capabilities in accordance with regulatory requirements prohibiting outsourcing collection for accounts overdue by less than 60 days, promoting the standardization and humanization of collection practices.

An objective view of the development of consumer finance business shows that fluctuations in bad debt rates are a normal phenomenon in the industry and a driving force for continuous optimization of institutional risk control capabilities. As of the end of June 2025, Ningbo Bank’s personal consumer loan bad debt rate was 1.83%, lower than the industry average, with the proportion of non-performing loans remaining within a reasonable range. In the face of industry risk challenges, Ningbo Bank and Ningbo Yin Financial Technology are continuously strengthening risk control, optimizing asset structures, and increasing efforts for the disposal of non-performing assets, fortifying risk defenses to ensure stable business operations. This proactive approach to addressing issues demonstrates the responsibilities and commitments of licensed financial institutions.

Currently, the consumer finance industry is at a critical stage of tightening regulation and standardized development, with the National Financial Regulatory Administration and the China Banking Association successively issuing new regulations to delineate collection red lines, standardize interest rate benchmarks, and strengthen consumer protection supervision, driving the industry away from reckless growth towards high-quality development. As a mainstay in the industry, Ningbo Yin Financial Technology and Ningbo Bank are consistently aligning with regulatory directions, proactively benchmarking against high industry standards, using recent complaint incidents as an opportunity to comprehensively investigate business vulnerabilities, optimize cooperation management, standardize post-loan collection processes, enhance service quality and efficiency, and respond to market concerns with compliant operations.

Finance should serve the good, and inclusivity is for the people. The core value of consumer finance lies in serving livelihoods and boosting consumption. Ningbo Yin Financial Technology and Ningbo Bank always adhere to this original intention, developing within regulation and enhancing through optimization. In the future, the two institutions will continue to uphold licensed operations and compliance first principles, strengthen technology empowerment and risk control, deepen consumer rights protection, optimize products and services, and contribute to the healthy and sustainable development of the consumer finance industry through more standardized operations, higher quality services, and steadier growth.