Consumer Capital Group Inc. (OTCQB: CCGN) - A subsidiary of CCGN, Yin Hang Financial Information Service (Shanghai) Co., Ltd (“CCG Yin Hang”) and Beijing Tongcheng Yilong Network Technology Co., Ltd.(“Yilongdai”) successfully signed a strategic cooperation agreement. Partnering with Yilongdai, CCG Yin Hang can provide better financial advisory service for micro, small-to-medium sized enterprises (“SMEs”) in China.
CCG Yin Hang offers financial consulting services such as loan origination criteria checkup, risk assessment and loan monitoring to SMEs and financial institutions in China. Yin Hang has developed its own big data risk assessment system to provide credit rating and risk management solutions to borrowers and financial institutions to facilitate loan origination process and reduce default risks for all parties involved in a particular lending transaction. In 2014, Yin Hang introduced IPC credit risk assessment technology, which CCGN considers is one of the best risk management technologies for SMEs.
In 2017, CCG Yin Hang upgraded and optimized its “Ingenuity IPCs” risk assessment technology, developing a unique and mature risk management system. The new system not only is based on advanced technology, but also strengthened managers’ awareness of risk management. By using this new risk assessment system, the company can provide better financial and risk-management consulting services to SMEs and rebuild the small micro-financial ecology.
Yilongdai, a member of Lenovo Holdings, is the first “City O2O” model online lending platform. Yilongdai aims to provide P2P loan service to farmers in rural areas and SMEs. The platform serves as an information provider, a matchmaker between lenders and borrowers and a risk controller. Yilongdai provides public with low threshold, efficient, safe and reliable financing means to meet their capital needs.
CEO and Chairman of the Board, Mr. Jack Gao stated that, “Partnering with Yilongdai, CCG Yin Hang will offer SMEs alternative financing means through risk-controlled private lending to meet their capital needs and develop their business.”
About Consumer Capital Group Inc. plans to implement three primary strategies to expand our market presence within the industry: (i) increase Arki E-Commerce’s lending capacity through the cash generated from operations and capital raised from this offering; (ii) increase the Company’s offering of financial services by expanding the business into financial consulting services throughout China; and (iii) expand the Company’s geographic coverage for both microfinancing, financial advisory service and wealth management business to major metropolitan areas such as Beijing, Shanghai, Guangzhou through the establishment of sales force. We believe that we can experience significant growth in these areas because there is a large number of established SMEs and sole proprietors in need of capital resources but lack the ability to finance either due to their limited size of business or local banks’ preferences to finance bigger and more established companies. In addition, we believe that our wealth management business will be able to provide potential investors a more attractive return comparing to traditional investment products.