35 Observations - China Alternative lending is the FinTech trend that has attracted the most investments in China. This has been driven by: 01 High demand for business and personal borrowing that remains unmet by thetraditionalstate-ownedbanksystem 02 Internet and technology platforms with huge market scale diversifying into newmarketsegments 03 Ahistorically unrestricted sector that remained unchecked by regulators Lowbarriers to entry combined with widespread internet access fueled a proliferation of alternative lending platforms in China. CH While some great platforms have emerged many have turned out to be giant Ponzi TE N I schemes – the most famous one being Euzabao where the founder allegedly escaped F F with over US$7.2bn from over 1 million investors. As a result of this Beijing has started O anationwidecrackdownonalternativelendingplatforms. TE TA S E TH Global FinTech Trends: Chinese Dragon 35