The upsurge in mobile transaction services used through smartphones is at the heart of a sudden expansion of the online financial services industry in China. This is a diverse and dynamic marketplace with investment, small-lending companies, peer to peer (P2P) lending, and most recently the emergence of the first batch of online-only banks: MYbank, 30% owned by Ant Financial (founded by Alibaba), and WeBank, which is 30% owned by Tencent. These new services provide a much-needed expansion of financial access for Chinese consumers and small and medium-sized enterprises (SMEs), that have long been underserved by the state-dominated banking system. What lies ahead for China’s online banks?
This year Alibaba broke all records on Singles Day with sales of $14.3 billion. Singles Day, or China’s Black Friday, was first invented by Alibaba in 2009. The idea was to create an annual sales event with crazy discounts supposedly for those who are single. (The fact that everyone, irrespective of their romantic status, jumped in and shopped is a different matter altogether.) This year a whopping 95 million users joined the cyber shopping fest. In other words, approximately almost one out of eight people in the world clicked the “buy” button on Alibaba’s marketplaces. What did it take to pull this off?
In a short space of time Alibaba’s Ant Financial has created—and scaled—a diverse set of financial products and services: from online payments to cloud computing and data services.
Mobile wallets are taking off in China but it is too early to say what they mean for the use of cash and bank cards.
In a bid to prevent users from venturing out of their proprietary environment, Alibaba and Tencent are aggressively adopting a walled garden strategy.
Long kept at arm’s length, will foreign bank card companies finally get a fair crack at the China market which is dominated by UnionPay?
With its huge scale and steps toward global dominance, can anyone rival Alibaba’s might in China’s e-commerce sector?
CKGSB professor Brian Viard on why Chinese banks are resorting to paying bank interest through Mercedes Benz cars, iPhones and even vegetables.
This week, taxi app Didi Dache secured funding of more than $700 million, easily the biggest private investment in China’s mobile internet sector; LeTV announced an audacious plan to get into Tesla’s territory; and China’s import and export numbers slowed.
Xiaomi was officially crowned the world’s third-largest smartphone maker but news of Lenovo completing its buyout of Motorola Mobility is clouding the verdict; and meanwhile Alibaba’s share price touched new highs.