![]() ![]() The worldʼs three most innovative fintech firms are Chinese, according to a new report by KPMG. With a tech-savvy populace, heavy investment from Chinaʼs internet giants and ample government support, China provides the perfect breeding ground for fintech and the country already leads the world in digital payments and peer-to-peer (P2P) lending. ZhongAn’s IPO looks likely to be just the beginning as fintech revolutionizes the once-staid Chinese financial system. “They can launch and test quickly according to consumer feedback and the low-cost nature of the platforms allows them to serve a large market segment.” “ZhongAn has developed a capability for agile development and deployment of products to many different ecosystem players,” says Hugh Terry, a Singapore-based actuary and founder of The Digital Insurer website. The company has sold 5.8 billion policies to 460 million customers in just three years, according to a September report by the Financial Times. The listing was not only the first ever worldwide by a digital-only insurance provider it was also the second-largest Hong Kong IPO of the year at a hefty $1.5 billion, behind only the $2.2 billion raised by Guotai Junan Securities, an investment bank, in March.īacked by internet heavyweights Alibaba and Tencent, as well as insurance juggernaut Ping An, ZhongAn’s high-tech approach is leaving its analog rivals in China’s insurance market in the dust. Nothing illustrated the arrival of China’s innovative financial technology-or fintech-industry on the world stage better than the initial public offering (IPO) of online insurer ZhongAn in September. A new generation of digital finance firms is taking the country-and the global markets-by storm in everything from digital payments and micro-lending to insurance and wealth management. Even today, when customers go to make a transaction at one of the country’s big state-run banks, they often take a bag of snacks with them-they know they’re in for a long wait.īut things are changing fast in the Middle Kingdom. But will tightening regulation nip this revolution in the bud?Ĭhina’s financial sector used to be famous for its poor service and imperviousness to innovation. ![]() A new wave of dynamic internet finance companies is taking on China’s lumbering state-run banks. ![]()
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