The case study in this unit detailed the business strategy of Dianrong, a company that began as a simple peer-to-peer lending company, but is now looking to diversify its product offerings across a wide range of FinTech sectors. It also discussed the potential challenges facing the Chinese banking system as the country’s wealth continues to grow, and examined the challenges facing the peer-to-peer lending industry in particular as the government seeks to implement stringent regulations on this growing sector.
In this small group discussion, consider the following questions:
What are the benefits and risks of Dianrong’s diversification strategy?
What are some of the challenges faced by Dianrong when considering government regulations? How can Dianrong safeguard itself from the uncertainty around future regulation?
