Jimubox, the Chinese fintech marketplace, connects China’s small-time investors to U.S. markets

Country: China
Year: August, 2013
jimubox logo

Founded in 2013, Jimubox started offering an online marketplace lending platform which facilitates SME loans and individual consumption loans for Chinese Borrowers.

This Xiaomi-backed startup, securing $84 million series C funding last year, added fixed-income, mutual fund and listed equities investment & management services, both onshore and offshore, into its diversified service portfolio. Now Jimubox transformed itself to a fintech marketplace with the multi-asset class, multi-product type online wealth management platform.

Jimubox has originated over RMB11 billion (around $1.7 billion) since its launch and became one of leading fintech platform in China.

Concept

  • Jimubox aims at the 25-40 year-old generation class of investors in China – consisting of more than 30 million people with individual investable assets between $50,000 and $500,000 – who is more mobile savvy and actively on quick online investments.
  • With new funds coming in, Jimubox team has managed to build its infrastructure to enable the new product offerings above-mentioned. At the same time for the purpose of reducing credit risks, Jimubox works under the license from the China Securities Regulatory Commission (CSRC) to distribute products for online users.
  • It also rides on the trend that China’s economy is slowing down which leads to a net $57.2 billion seeking a way out in just first half of 2015 for portfolio investments. Jimubox provides a direct access for China investors to invest abroad. Its mobile trading app Jimustock listed over 5,000 U.S. stock accounts in first 3 operation days and now its investors numbers have grown by 10 times.

Consumer Benefits

  • Fast: Jimubox offers a simple loan application for borrowers to complete without any collateral requirement. The approval process usually takes about 1-3 days. Besides, the investors can open a US regulated brokerage account in less than 5 minutes with no minimum account size.
  • Low cost: The platform itself only costs investors & lenders a small handling fee for cash withdrawals (below $1) or credits transfers (0.5%). As regarding to borrowers, their charges online are far cheaper than in a brick-and-mortal bank.
  • Knowledge driven: Jimubox has launched its intelligent advisory JinNang to deliver knowledge driven financial content, combining financial education with real-time tradable financial product, to help investors select customized financial products.
  • Diversified portfolio: Jimubox’s service Jimustock provides Chinese investors with direct access to the US market and helps users manage a diversified global portfolio by reducing the barriers in approaching overseas stocks and enhancing its technology solution.

How to use it

For Lenders & Investors

  • Set up a lender & Investor’s account
  • Access information needed on borrowers and financial products
  • Create and manage portfolios using the online platform

For Borrowers

  • Set up a borrower’s account
  • Fill up the loan application and submit the required materials
  • Approval processing
  • Raise and receive funds on the online platform

Revenue Model

  • From borrowers: Origination fees between 2.5% (personal loans only) and 0.75%-2% monthly account management fees
  • From lenders: 10% of interest returns and 0.5% for intermediary service fees charged on the value amount of credit transfer.
  • From Investors: commission at $0.005 per stock, at least $1.99 per trade when using Jimustock.