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Given that banks typically reject the majority of potential borrowers, this marketplace approach gives them a way to retain the customer relationship while also bringing new customers into the financial services ecosystem. An account could be opened for as little as 1 yuan ($0.15). Ant’s size have made it an important entity in the Chinese financial industry, and yet Ant is not licensed as a bank. (Zhao Cai Bao is now an investment platform with a secondary P2P market for fixed-term deposits.) In a market starved for consumer financial products, Ant’s investment platforms were an instant hit. As a lending platform owner, a bank would have right of first refusal on any loan, and then refer rejected clients to a marketplace where borrowers can shop for the best lender. The app works with Nasdaq to provide … Launched in August 2015, the app – part of Ant Financial, an affiliate of e-commerce giant Alibaba – now has some 25 million active users.

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It will later open to various financial institutions including banks, insurance companies, and securities firms, according to Ant Financial. Ant Group (Chinese: 蚂蚁集团; pinyin: Mǎyǐ jítuán), formerly known as Ant Financial and Alipay, is an affiliate company of the Chinese Alibaba Group.Ant Group is the world's highest-valued FinTech company, and most valuable unicorn company.In October 2020, Ant Group was set to raise US$34.5 billion in the world's largest IPO at the time, valuing the company at US$313 billion. Ant Financial’s push in online financial services comes amid heightened regulatory attention. For companies suddenly faced with the prospect of competing against Ant Financial, the recipe for success is to combine the best aspects of Ant’s model with what traditional financial institutions already do well.

This large consumer audience also enables Ant to launch new financial products, like Yue Bao. That’s just one example. Ant Fortune, the investing app of Ant Financial Services Group (Alibaba Group’s finance affiliate), unveiled recently Caifu Hao (财富号 or “Fortune Account” in English) which will allow third-party financial institutions to set up shop inside the app.. How Ant’s financial services platforms are changing traditional finance, This large consumer audience also enables Ant to launch new financial products, like Yue Bao.

on March 4, 2019. While some may say Ant Financial operates in a larger market, and therefore larger scale is to be expected, this doesn’t explain Ant’s runaway growth within the Chinese market that has long-standing banks gnashing their teeth. With Caifu Hao, third parties will be able to sell their own products to users directly and publish content on the app.

This shift will better align Ant with the government’s strategy in the financial sector while enabling it to innovate and grow at what it does best – building platforms. Thus it’s not surprising that the Chinese government plans to implement new financial regulations to oversee large fintech companies.

For example, we’ve recently written about the benefit of lending marketplaces to both financial intermediaries and consumers. Photo credit: AP Photo/Kin Cheung. In 2017, the Chinese government required money market managers to set aside. This model starts with Alipay. Tracey Xiang is Beijing, China-based tech writer.

An account could be opened for as little as 1 yuan ($0.15). Given that banks typically reject the majority of potential borrowers, this marketplace approach gives them a way to retain the customer relationship while also bringing new customers into the financial services ecosystem. I contribute to Forbes, and previously I freelanced for SCMP and Nikkei. | Explanation, The Value of Digital Transformation: How Investors Evaluate “Tech”.

Yuan said in the statement the company is planning to bring fund products from Hong Kong, so investors can indirectly tap global markets.

They could also, of course, choose to invest in any fund listed on Ant Fortune. as a safeguard against bad debt. Email: ywywyuewang@gmail.com Twitter: @yueyueyuewang, © 2020 Forbes Media LLC. I contribute to Forbes, and previously I freelanced for SCMP and Nikkei. It’s also gotten involved with high profile partnerships in Europe, but has made less headway in that region – at least for now. Prior to Beijing, I spent six months as an intern at TIME magazine's Hong Kong office. Jack Ma, the owner of Alibaba Group, announced that Ant will move towards tech services revenue and seek partners to handle loan issuance.

The key to Ant’s growth lies in its platform business model.

The Investment Personality Test, developed by Schroders* and customised for Chinese investors by Ant Fortune, is accessible via their mobile Wealth Management platform and available through the Alipay app, a major payment and lifestyle platform. Ant’s most recent valuation came in at $150 billion, compared to Goldman Sach’s $99 billion. More by Tracey Xiang. It’s important to note that the platforms cross-sell services across Ant’s ecosystem, thereby all but ensuring that each new venture will have the user base necessary to attract third-party financial institutions onto the market. Alipay isn’t Ant’s only financial services platform. Thus it’s not surprising that the Chinese government plans to implement new financial regulations to oversee large fintech companies.
Sent weekly on Sunday. . Ant’s most recent valuation came in at $150 billion, compared to Goldman Sach’s $99 billion.

In a country where most large financial institutions are owned or controlled by the government, Ant’s success is unusual. According to a report from Reuters, Ant’s revenue is shifting away from offering traditional financial services and more toward facilitating third party financial institutions.

We’re constantly updating our feeds with the latest platform news and Applico announcements. What’s interesting about Ant Financial is how it has managed to mine gold from its Alipay customer base and use that data to create multiple interlocking platform businesses in financial services. This hybrid approach combines complimentary platform and linear services to create a financial services ecosystem of unparalleled breadth.

Alipay has over 700M active users and completed over $8 trillion in transactions in 2017 – that’s equivalent to 65% of China’s GDP. Meanwhile, Ant Fortune has democratized asset management and retirement planning. Zhao Cai Bao oversaw $40.7 billion in transactions by the end of July, according to Ant Financial. In 2017, the Chinese government required money market managers to set aside 0.5% of net assets as a safeguard against bad debt. The key is the platform mindset that underlies everything Ant does. It will be accessible by selected users in the initial launch phase. into its popular app last month, a service that was previously only available on Starbucks’ own mainland mobile app.

As a lending platform owner, a bank would have right of first refusal on any loan, and then refer rejected clients to a marketplace where borrowers can shop for the best lender.

It’s made substantial investments in Southeast Asia and India, including in India’s uber-successful Alipay clone, Paytm. Instead it’s shifting toward opening up its platforms more to larger financial institutions. In the first quarter of 2017, Ant’s ABS volume dropped by 65%. It’s linear micro and SME lending arm was taking on riskier loans and passing on the risk by selling the loans through asset-backed securities. Sign up to join over 20,000 other subscribers and receive the latest in platform news and insights.

“Ant Fortune aims to provide investment options for those who are left out by the current wealth management products by lowering the entry threshold, and for those who have little time or ‘know-how’ to grow wealth,” Leiming Yuan, general manager of Ant Financial’s wealth management unit, said in a statement.

The world’s largest fintech company, China’s Ant Group, will try to raise nearly $35 billion in a massive public offering of stock that would shatter records.

Today, it’s one of the largest financial institutions in the world. It is now the largest money market fund in the world at $251 billion.

Reach her at traceyxiang@gmail.com

All of China’s 116 mutual fund managers are on the platform that reaches 180 million users.


Meanwhile, Ant Fortune has democratized asset management and retirement planning. It combines this platform approach in everything from payments and lending to insurance and investing with its linear microlending and microinvesting. Ant Financial isn’t just content to capture the Chinese market. Through Ant Fortune, users can also check stock information in Shanghai, Shenzhen and Hong Kong bourses. While some may say Ant Financial operates in a larger market, and therefore larger scale is to be expected, this doesn’t explain Ant’s runaway growth within the Chinese market that has long-standing banks gnashing their teeth.

Yue Bao, Chinese for ‘leftover treasures,’ is Ant’s money market fund.

In other words, Ant can promise access to a large pool of potential clients, and financial service providers can’t resist joining such a large network.

According to Bloomberg. In a cross-selling move that is as old as business itself, Ant Financial also offers other financial services through ecosystems for insurance, credit, loans, credit scoring, and wealth management to that captive audience. I write about interesting Chinese companies. Yue Bao was able to use Alipay data to identify users who left a positive balance in their Alipay digital wallet. The Caifu Hao system is expected to go live in June and the first batch will include several mutual fund companies.

Most importantly, whether a user choose a third-party financier on Ant Fortune or opts for Yue Bao, that user remains within Ant’s financial and data ecosystem. Get instant access to all our premium content, archives, newsletters, and online community. It combines this platform approach in everything from payments and lending to insurance and investing with its linear microlending and microinvesting. Users will also be able to invest in Ant Financial’s money-market fund Yu’E Bao and buy products from Zhao Cai Bao, an online platform connecting small businesses and individual borrowers with investors. It is now the largest money market fund in the. Yue Bao made investing in a money market fund easy for consumers. In a country where most large financial institutions are owned or controlled by the government, Ant’s success is unusual. That Ant offers both platform (Ant Fortune) and linear (Yue Bao) asset management services suggests that the platform transactions yield a large enough margin to justify Ant’s continued investment in it. (Zhao Cai Bao is now an. China’s central bank last month proposed to limit payments made through online payment platforms including Ant Financial’s Alipay and Tencent’s WeChat Payment.

Similar to Paypal, Alipay processes payments between any two users, whether they’re shoppers and small businesses, roommates, or street performers and commuters.

Ant Fortune, the investing app of Ant Financial Services Group (Alibaba Group’s finance affiliate), unveiled recently Caifu Hao (财富号 or “Fortune Account” in English) which will allow third-party financial institutions to set up shop inside the app. For example, while Ant’s P2P lending platform, Zhao Cai Bao, went through some high profile struggles, including a large default by one of the companies that issues bonds on the platform, Ant hasn’t given up on the platform approach in lending.