China’s financial services and banking ecosystem is vividly changing ever since its development in the FinTech field. McKinsey & Co partner Joe Ngai said, “Chinese FinTech companies have been expanding overseas.” Ant Financial, Alibaba’s digital commerce division started its operation in China back in 2016.
They were recently quoted saying that its business development strategy will be largely on par with globalization benefits. The mobile payment service called Alipay under the Alibaba Company already has more than 1.2 billion users globally.
Alipay’s chief business partners include India’s PayTM, Thailand’s True Money and Cambodia’s DaraPay. On adapting to digital payment services like Alipay, consumers can do transactions through their digital wallets from anywhere.
As per Mr Ngai, Alipay’s plan for global expansion is a logical step and he added, “Where there are already established players in local markets, acquisitions and partnerships has sometimes been the business model of choice.” Alipay’s one way of expanding its business was to export latest financial technologies to overseas market.
Another FinTech division of Ping An called OneConnect works with over 3300 financial institutions since its instigation in overseas market from 2018. OneConnect offers services in several Southeast Asian countries like Indonesia, Philippines and Singapore.
The latest trends show that financial service providers in Asia are increasingly adopting FinTech solutions like facial recognition for handling KYC checks, which was approved after several rounds of test in the Chinese market.