Peak Positioning Technologies (PKK.C) Lending Hub platform is being used to facilitate a commercial lending financial centre, according to a press release.
The financial apparatus is compromised of 30 banks, eight insurance companies and three investment funds and sponsored by the Jiangyin municipal government to assist the city’s businesses in finding access to loans and credit.
“We quickly recognized the positive impact that Peak’s Lending Hub was having on some of our supply chain businesses in 2019 when the platform was introduced to our city. We knew that this was something that could benefit many more of the city’s businesses, so we’re delighted to have been able to work with Peak to launch this new concept,” said Qiang Zhao, Deputy Mayor of the Jiangyin Municipal People’s Government.
The idea underlying the financial centre came about back in March when the city started using the lending hub to help with the qualifications and distribution of government financial aid to the city’s businesses otherwise underwater due to COVID-19. Shortly after, city officials, Peak executives and banking and insurance executives signed the agreement to create the financial centre.
“We commend Mr. Zhao and other city officials that we have had the pleasure to work with on this project for their vision and innovative spirit. This Financial Centre concept is undoubtedly a model that will eventually be replicated in other cities across the country and we will all have the city of Jiangyin to thank for that,” said Liang Qiu, CEO of Peak Fintech Group China.
The process is decently simple. Any one of the city’s 200,000 plus micro, small or medium sized businesses can go to the platform’s website and register for eligibility to receive loan and credit offers from 30 banks, including the Agricultural Banks of China, Bank of Shanghai, and China Merchants Bank. Eligibility is based on data analysis performed by Peak’s Lending Hub. Peak draws a service fee ranging from 1% to 2.5% of all loans granted through the centre, which most are guaranteed by a municipal government fund partnered with eight insurance companies and three investment funds