Financial institutions should diversify their operating channels and use innovative management systems to boost consumer lending, authorities said on Wednesday.
Some banks will be able to set up new networks covering consumer lending services, including in wholesale markets, commercial centers, schools and tourist sites, according to a joint announcement from the People's Bank of China (PBOC), the country's central bank, and the China Banking Regulatory Commission on Wednesday.
Banks should come up with more innovative management systems and financial services, such as using the Internet to review loan applications, the announcement noted.
Also, banks can develop different mortgage down payment ratios by integrating big data technologies and standardizing small loan products.
The consumer finance market is projected to reach 37.4 trillion yuan ($5.75 trillion) by 2019. A recent report by iResearch Consulting Group said that Internet-enabled consumer finance alone is expected to reach 3.4 trillion yuan in 2019 compared with 6 billion yuan in 2013, according to media reports in January.
The announcement also encourages more financial support for sectors such as retirement and pension plans.
