Capital increase of 1 billion! What gives Kuaishou Finance the confidence to win the trust of 700 million iron buddies?

Listing | Zhongfang.com

Review | Li Xiaoyan

In December 2025, Guangzhou Kuaishou Microloan Co., Ltd. increased its registered capital from 500 million yuan to 1 billion yuan. This capital increase is a key step for the short video giant Kuaishou to strengthen its financial foundation and a clear signal of its reliance on a large user ecosystem and deep engagement in digital inclusive finance. From facilitating loans and directing traffic to self-operated licensed management, from consumer installment plans to cash loan products, Kuaishou adheres to compliance, focuses on scenarios, and prioritizes users. In this new stage of internet finance regulation, it has charted a distinctive path that aligns with its ecosystem, serves the sinking markets, and empowers the real economy. Despite ongoing industry-wide compliance and service challenges, Kuaishou is actively rectifying issues and implementing systematic governance, transforming its traffic advantage into sustainable financial service capabilities, providing a reference model for the integration of short video platforms and digital finance.

Kuaishou’s financial layout, though late to start, progresses steadily, always anchored in licensed operation and compliance-first principles. Compared to earlier industry players, Kuaishou chose to accelerate after regulatory frameworks became more complete, effectively avoiding the risks of early industry overgrowth. In 2024, Kuaishou completed its licensing layout through acquisitions: obtaining a network microloan license to establish its own lending foundation; acquiring an insurance brokerage license to improve financial service support; and obtaining a prepaid card license to fill payment scene gaps. Building a full licensing matrix allows Kuaishou Finance to move away from relying solely on traffic diversion toward a compliant operation mode that is autonomous and risk-controlled. In 2025, Kuaishou launched two self-operated products: Kuaishou Monthly Payment and Easy Loan. The former focuses on small shop consumer installment plans, offering up to 37 days interest-free, fitting e-commerce consumption scenarios; the latter strictly controls annual interest rates not exceeding 24%, providing transparent pricing for users. By the end of the year, the microloan company’s capital was increased to 1 billion yuan, meeting regulatory capital requirements and enhancing risk resistance and inclusive service scale—marking Kuaishou Finance’s transition from testing waters to scaled, standardized development.

Relying on an ecosystem of 700 million users, the core value of Kuaishou Finance lies in scenario deepening and inclusive landing, precisely filling the financial service gaps in sinking markets. According to QuestMobile, nearly 60% of Kuaishou users come from third- and lower-tier cities, where access to financial services is generally limited. Instead of simply copying pure cash loan models, Kuaishou deeply embeds financial services into real scenarios such as live e-commerce, local services, and small shop management: Kuaishou Monthly Payment makes consumer installment easy for ordinary users, lowering shopping barriers; Easy Loan offers compliant small loans for users with temporary funding needs; third-party traffic diversion connects licensed institutions, enriching product offerings. The platform’s weekly 160 million views of financial content demonstrate strong user demand for legitimate financial services, and the high conversion rate of financial ads reflects users’ trust in the platform. Essentially, Kuaishou Finance uses digital technology to lower service thresholds, integrates scenarios to improve efficiency, and truly reaches groups traditionally overlooked by conventional finance, supporting consumption upgrades and vitality in micro and small business operations in sinking markets.

While rapidly expanding, Kuaishou actively aligns with regulatory requirements, building a comprehensive compliance risk control system, and directly addressing common industry issues. As a latecomer entering the financial sector via an internet platform, Kuaishou understands that risk control and compliance are vital to business survival. For post-loan management, the platform strictly follows the “Internet Financial Personal Online Consumer Credit Post-Loan Collection Risk Control Guidelines,” establishing full-process recording and AI real-time quality inspection mechanisms, removing non-compliant outsourcing agencies, and preventing violent collection and information leaks. For marketing, it standardizes loan advertising content, eliminates exaggerated claims, and clearly displays interest rates, fees, and repayment rules to protect users’ right to information and choice. Regarding pricing, it implements the “penetrating, total cost-based pricing” requirement of new loan assistance regulations, including all interest, guarantee, and service fees into the comprehensive financing cost, preventing hidden interest hikes and forced bundling. For data compliance, it adheres to the “minimum necessary” principle for personal information protection, strictly controls data collection scope, and establishes data security firewalls, prohibiting unauthorized information sharing. From advertising to credit approval, disbursement, and post-loan management, Kuaishou integrates compliance requirements into every business process, balancing efficiency and risk.

Undeniably, as a new industry entrant, Kuaishou Finance still faces challenges in service optimization and capacity enhancement amid rapid growth. Issues such as non-standard collection practices, unclear fee disclosures, and incomplete information authorization management reflect external outsourcing control and insufficient refined user operations, as well as common phased problems in the internet finance industry. Unlike some platforms that respond passively to regulation, Kuaishou chooses proactive self-inspection and systematic rectification: tightening access to partner institutions, establishing whitelist mechanisms, and strengthening full-cycle control over third-party agencies; optimizing product processes, adding contract mandatory reading and facial recognition confirmation to ensure genuine user intent and decision-making calmness; and increasing financial literacy through short videos and live broadcasts to raise user risk awareness and promote rational borrowing. These actions demonstrate that Kuaishou is shifting from a “traffic monetization mindset” to a “long-term service mindset,” placing user rights protection at the core of business development.

Looking ahead, Kuaishou Finance’s growth potential lies in returning to the essence of finance, deepening industry value, and maintaining strict compliance. On one hand, it will continue to reduce high-risk pure cash loan business and allocate resources to scenarios like merchant business loans and supply chain finance, serving micro and small entrepreneurs within the platform to foster a virtuous cycle between finance and the real economy. On the other hand, it will empower risk control through technology, leveraging big data and AI to build precise risk models, stratify customer groups, and price risks, improving service efficiency while strictly controlling bad debt rates. More importantly, compliance and consumer rights protection will be incorporated into senior management performance evaluations, with independent supervision mechanisms, and regular social responsibility reports to actively accept societal oversight. For Kuaishou, the trust of 700 million users is the most valuable asset; large traffic is not a tool for harvesting but the foundation for serving users and creating value.

From a traffic platform to a comprehensive financial service provider, Kuaishou Finance’s transformation reflects the regulated development of internet platforms. Amid stricter regulation and industry reshuffling, Kuaishou leverages licensed operations, scenario-based strategies, and compliance as guiding principles, transforming its short video ecosystem’s traffic advantage into inclusive financial service capabilities. Problems encountered during development will be resolved through regulated growth; temporary challenges will be addressed through long-term commitment. When 700 million users encounter compliant finance, Kuaishou’s choice is not short-term profit but long-term goodness; not traffic frenzy but responsibility. In the future, only by continuously respecting regulation, valuing users, and deepening scenarios can Kuaishou Finance remain steady and far-reaching in the digital finance arena, truly serving users, empowering the ecosystem, and creating responsible financial value.