What's The Potential of The Consumer finance Market For Undergraduates in China

Source:iResearch April 24,20178:25 AM
First of all, the consumer finance market for undergraduates has a huge market size. Consumer finance, as the name suggests, refers to consumer-based financial businesses. In 2016, the number of undergraduates in China has reached 37.42 million and the amount of their consumption totaled 452.4 billion Yuan. The data above show that China’s consumer finance market for undergraduates has a solid market base. 

What’s more, undergraduates have strong demand for consumer finance services. The young in today’s society, mainly made up by people born after 1990, developed in an environment totally different from that the previous generation had. The young generation is more accustomed to the Internet ecology and the convenient e-commerce shopping mode. Meanwhile, the convenience of mobile payment and online payment weakened their concept of currency and they formed a more vanguard consumption concept. The survey conducted by iResearch, the young have a lower disposable income while their demand for consumption is huge, given that nearly 70% of the young had ever conducted hire purchase and more than 90% were not against hire purchase. Undergraduates, as an important group in the young consumers, also have low income but high consuming demand, therefore, they are in great need for consumer finance services which help them better plan and enjoy their life and improve themselves. 

Finally, the consumer finance market for undergraduates is a vital link in the credit system in China. In 2015, the penetration rate of credit system among the public was only 26.7% in China. Meanwhile, the penetration rate in USA hit 82.0% in 2015, and there is a wide gap between China and USA in terms of the credit system coverage. Currently, the credit system covering the 30 million undergraduates in China has not been established, and the healthy development of the consuming financial market for undergraduates will be a vital part of the credit system and will greatly benefit the country and the people in China.

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