Baotou will improve its financial services industry by establishing a consumer finance company, reports Baotou Daily.

Baoshang Bank, the earliest joint stock commercial bank in Inner Mongolia autonomous region, is the main initiator of the setting up of the company. The registered capital of the company will be 300 million yuan ($43 million).

The new organization will be the first consumer finance company in the Inner Mongolia autonomous region, providing financial services to local residents.

A consumer finance company is a financial institution specializing in issuing loans directly to consumers who are unable to secure bank loans. Consumer finance companies boast features including small credit lines, quick processing and approval, no need for mortgage-backed securities, and the ability to provide flexible services.

Baotou, the largest city of North China’s Inner Mongolia, has a total of 30 financial institutions and is one of the pilot cities for promoting “FinTech” in China –– businesses based on a combination of technology and finance. It has been leading the regional economy in the autonomous region.

The new company to be established in Baotou will employ information technologies and a flexible assessment and approval process to meet the varied needs of customers.