What does it mean to eliminate money?

Money elimination refers to consumer finance. Consumer Finance Company is a non-bank financial institution established in China with the approval of China Banking Regulatory Commission, which does not absorb public deposits and provides loans for domestic residents for consumption on the principle of small amount and dispersion.

Starting from 20 17, the state began to rectify the cash loan industry. With the strengthening of the supervision of enterprises in the industry by relevant departments, the issuance of consumer finance licenses has almost become one of the important watersheds in the consumer finance industry. Therefore, consumer finance companies are mainly divided into two categories, namely licensed financial institutions and unlicensed financial companies.

Compared with unlicensed consumer finance companies, licensed institutions have a higher degree of customer trust, and enterprises applying for financial licenses also need to face layer-by-layer examination by relevant departments, and the examination conditions are relatively strict, which sets a threshold for many enterprises. In 20 19, there were only 24 licensed consumer finance companies in China, with only three new ones: Ping An Consumer Finance, Everbright Consumer Finance and Tianxing Consumer Finance (formerly Xiaomi Consumer Finance). For customers, when choosing a loan enterprise, the most important consideration is often the credit degree of the enterprise. Therefore, at this level, licensees are more easily accepted by users.

In order to ensure the safety of the financial industry and reduce the credit risk, the operation mode of issuing financial licenses is a major trend in the future development of the financial industry.