Bank customer managers introduce financial and loan services to viewers during a livestreaming session in Hai'an, Jiangsu province, on Feb 10. XU JINBAI/FOR CHINA DAILY

　　A year after China tightened rules governing internet-facilitated lending, the once rapidly expanding sector is now entering a new phase, marked by shrinking bank partnerships, tighter risk controls and rising compliance demands.

　　As banks reduce their reliance on online platforms, leading lending-assistance providers are increasingly repositioning themselves as technology service companies rather than traffic and funding intermediaries.

　　Issued by the National Financial Regulatory Administration, the "Notice on Strengthening the Management of Internet-Facilitated Lending by Commercial Banks and Improving the Quality and Efficiency of Financial Services" officially took effect on Oct 1, 2025, prompting small and medium-sized lenders to undertake major overhauls of their internet-facilitated lending businesses.

　　Internet-facilitated lending mainly refers to a cooperation model in which licensed financial institutions rely on third-party internet platforms for functions such as customer acquisition and risk-control support.

　　The NFRA said that regulating commercial banks' internet-facilitated lending business is an important measure taken by the administration to comprehensively advance risk prevention, strengthen supervision and promote development. Strengthening the regulation of internet-facilitated lending will help ensure that commercial banks continuously improve their compliance standards, better leverage the positive role of such services, and effectively protect the legitimate rights and interests of financial consumers.