"The technical department reduced from 3,000 to about 200 people," multiple internet financial companies are reported to be downsizing! Banks tighten the white list for loan assistance cooperation, requiring the total financing cost of loans not to exceed 24%.

Red Star Capital Bureau reported on March 25 that a spreadsheet titled “Layoff Situations of Fintech Companies” has recently circulated on social media, mentioning several internet finance companies and detailing their layoff situations, which has subsequently attracted market attention.

An employee from an internet finance company told Red Star Capital Bureau that their company is indeed laying off staff. The direct reason for personnel changes is the profit compression brought about by industry adjustments starting from the fourth quarter of 2025.

Image from Visual China

The industry changes stem from October 2025, when the Financial Regulatory Administration issued the “Notice on Strengthening the Management of Internet Loan Assistance by Commercial Banks to Improve Financial Service Quality and Efficiency” (hereinafter referred to as the “New Loan Assistance Regulations”), which was officially implemented.

Over the past six months, what impact have the New Loan Assistance Regulations had on the industry? An industry insider told Red Star Capital Bureau that the model of the loan assistance industry, which previously relied on “high interest rates, wide net casting, and light risk control” to make easy profits, is no longer viable.

Several internet finance companies have been exposed for reducing staff.

Banks are tightening the “white list” for loan assistance cooperation.

The spreadsheet circulating on social media titled “Layoff Situations of Fintech Companies” lists nine internet finance companies, mentioning that one company has an “overall layoff of 30%” and another has “reduced its tech department from 3,000 to about 200.”

On March 24, a female employee (alias) from one of the internet finance companies listed in the spreadsheet told Red Star Capital Bureau that her company is indeed laying off staff. She also mentioned that around the fourth quarter of 2025, several internet finance companies are making personnel adjustments, which has become a common phenomenon in the industry.

The direct reason for personnel changes is the profit compression brought about by industry adjustments, she told Red Star Capital Bureau.

The industry changes stem from October 2025, when the Financial Regulatory Administration issued the “Notice on Strengthening the Management of Internet Loan Assistance by Commercial Banks to Improve Financial Service Quality and Efficiency” (hereinafter referred to as the “New Loan Assistance Regulations”), which was officially implemented.

Specifically, the New Loan Assistance Regulations require commercial banks to implement a list management system for platform operating institutions and credit enhancement service institutions, disclose the list through official websites, mobile internet applications, and other channels, and update the list in a timely manner. Commercial banks are prohibited from conducting internet loan assistance business cooperation with institutions not on the list.

In addition, the New Loan Assistance Regulations require that the comprehensive financing cost of loans does not exceed 24%, and platform operating institutions are not allowed to charge borrowers interest and fees directly in any form (such as membership fees, service fees, etc.). All fees must be included in the comprehensive financing cost and must comply with the Supreme Court’s regulations on interest rate ceilings.

An insider from a leading platform told Red Star Capital Bureau that the New Loan Assistance Regulations have thoroughly connected fees and interest rates, effectively closing the loophole that allowed disguised price increases through third-party institutions. Charges that could previously be hidden under the guise of services must now be fully exposed within the 24% annualized interest rate red line, significantly compressing the platform’s profit margin.

She noted that this adjustment is viewed by loan assistance companies as a “critical bottleneck.” It is important to add that before the new regulations took effect, the annualized interest rate range of 24%-36% was commonly seen as the natural debt range for private lending, and only amounts exceeding 36% could be subject to litigation for refund.

An industry insider told Red Star Capital Bureau that this also means that the past model of the loan assistance industry, which relied on “high interest rates, wide net casting, and light risk control” for easy profits, is no longer viable.

Red Star Capital Bureau has noticed that in the past six months, many banks have suspended cooperation with certain loan assistance platforms, undoubtedly increasing the survival pressure on loan assistance institutions.

For example, Urumqi Bank has completely stopped cooperative internet loan business since October 2025; Jilin Yilian Bank announced in January this year that the number of its cooperation list has drastically decreased, leaving only 11 companies; according to reports from Daily Economic News, recently, the updated cooperation list on the official website of Weihai Blue Ocean Bank includes a total of 68 internet loan platform operating institutions, but 40 have been marked as “suspended,” with the number of cooperation partners reduced by nearly 60%.

The loan assistance industry is entering a reshuffling period.

The industry’s direction focuses on compliance and healthy development with risk control.

On March 25, Xue Hongyan, Vice President of Xingtou Financial Research Institute and a special researcher at Su Business Bank, told Red Star Capital Bureau that since the implementation of the New Loan Assistance Regulations six months ago, high-interest loan assistance platforms are undergoing a significant market clearing process. Some small and medium-sized loan assistance platforms have fallen into a state of business stagnation, and the performance of leading listed loan assistance companies has also shown a significant decline.

This has been corroborated by industry insiders. She mentioned to Red Star Capital Bureau that small-scale loan assistance platforms focusing on high-interest business are facing existential crises, with some already beginning to exit the market.

Mid-tier platforms are also experiencing drastic declines in valuation, with the operator of “Huanbei,” Shuhe Technology, being one of them. The major shareholder, Focus Media (002027.SZ), disclosed in its financial report that Shuhe Technology was still profitable in the first three quarters of 2025, but after the New Loan Assistance Regulations took effect, its net loss in the fourth quarter reached 684 million yuan. In January 2026, Zhonglian Asset Appraisal Consulting Company valued Shuhe Technology at only about 782 million yuan, with a valuation impairment rate of 73.45%.

Focus Media decided to completely withdraw from the investment project in Shuhe, and after negotiations, Shuhe Technology repurchased 54.97% of the shares held by Focus Media for a total consideration of 791 million yuan through a domestic targeted capital reduction and overseas equity return, no longer being an associated company of Focus Media.

In addition, Red Star Capital Bureau has noticed that the performance of leading listed loan assistance companies has also shown a significant decline. For example, Qifu Technology reported revenue of 4.093 billion yuan in the fourth quarter of 2025, a year-on-year decrease of 8.7%, with a net profit of 1.016 billion yuan, a year-on-year decrease of 46.8%; Lexin reported revenue of 3 billion yuan in the fourth quarter of 2025, a decrease of 16.8%, with a net profit of 214 million yuan, a year-on-year decrease of 41.0%; Xinye Technology reported revenue of 3.024 billion yuan in the fourth quarter of 2025, a year-on-year decrease of 12.5%; profit was 416 million yuan, a year-on-year decrease of 39.0%.

Xue Hongyan added that currently, some platforms are still using installment mall models to indirectly maintain high interest rates, but regulators have maintained a high-pressure stance on such gray operations, and the overall cleanup trend is clear.

On March 13, the National Financial Supervision and Administration announced that it had conducted interviews with the operating institutions of five platforms, including Fenqi Le, Qifu Jie Tiao, Niwo Dai, Yixiang Hua, and Xinyong Fei. They are required to effectively standardize marketing and promotional activities when cooperating to conduct loan business, clearly disclose interest and fee information of loan products, strictly comply with personal information protection regulations, conduct collection in accordance with the law, and establish a sound customer complaint resolution mechanism to effectively protect the legitimate rights and interests of financial consumers.

Xue Hongyan told Red Star Capital Bureau that in the long run, the New Loan Assistance Regulations promote transparency in interest and fees, ending the previous profit model based on information asymmetry, and prompting industry competition to shift from competing for traffic to competing for risk control and capital costs. The 24% comprehensive interest rate ceiling eliminates the space for high-interest loans, and non-compliant institutions are accelerating their exit, with resources concentrating more on leading institutions with strong risk control capabilities. At the same time, the new regulations also prompt banks to genuinely undertake risk control responsibilities, no longer overly relying on loan assistance platforms, gradually leading the entire industry onto a healthier development track that emphasizes compliance and risk control.

(This article does not constitute any investment advice; risks borne by operations based on this article are at your own risk.)

Reporter: Qiang Yaxian

Editor: Yang Cheng, Xiao Shiqing

Red Star Capital Bureau Original