China’s Ant Group plans to close its Xiang Hu Bao mutual aid platform next month, a move that comes as the country’s government continues its crackdown on FinTech companies.
As the South China Morning Post reported Tuesday (Dec. 28), the platform, whose name means “protect each other” in Chinese, will shut down Jan. 28, 2022.
Launched in 2018, Xiang Hu Bao is the world’s largest mutual aid platform, with roughly 180,000 people receiving aid through the platform since its debut.
Related: Ant Group In Talks With Chinese Officials To Revive Healthcare Unit
These platforms are popular in China’s low- and middle-income rural communities, where quality medical care can be scarce.
The platform has no signup fees and gives members the chance to get as much as $45,000 for life-threatening injuries or illnesses. Members have had to contribute as little as one cent to each claim.
As PYMNTS reported earlier this year, Ant Group had considered transforming Xiang Hu Bao into a commercial product regulated by China’s banking and insurance agencies. Ant Group was apparently also working with a licensed insurance firm to oversee Xiang Hu Bao’s transition to a regulated medical insurance plan.
In the past year, Xiang Hu Bao has seen members drop off from its high of 106 million, falling to 91 million earlier this year. Memberships started declining after regulators put the brakes on Ant Group’s initial public offering (IPO) in November 2020.
As the South China Morning Post reports, Ant Group has been restructuring its operations ever since the halt on its IPO, which fell apart due to government concern over the firm’s growth and lack of regulatory oversight. The paper is owned by Alibaba, which also owns Ant Group.
Read more: Ant Group to Differentiate Between Borrowing From Company, Outside Lenders
Last month, Ant Group began telling customers whether they were borrowing from the company or a third party lender in an effort to comply with regulators.
As part of the overhaul, Ant set up a new consumer finance company, and has begun folding its credit operations into this entity.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More