Chinese internet giants that have entered into the online financial niche are now drawing partnerships with banks in order to grow and succeed together. The internet giants that would otherwise be described as competitors have agreed to adopt highly advanced financial technologies to make China a market leader in fintechs.
Tencent Holding Ltd partnerships
One such partnership is between the Huaxia Bank Co Ltd with Tensent Holding Ltd. The two companies agreed to come up with anti-fraud-lab, an artificial intelligence-backed customer support, and financial services cloud. These developments will be based on the collaboration between the two stakeholders on areas of credit, online payments, and credit card services development.
Tencent is already working with over 200 banks and other financial institutions to facilitate sharing its data as well as famous cloud computing capabilities.
It is worth noting that this space is becoming highly competitive because of espoused returns. Tencent’s top competitors are equally angling themselves to get a slice of the lucrative financial sector. The main competitors include the Alibaba Group Holding Ltd and Baidu Inc. The three top tech companies in the internet niche have been labeled the “Tech Trinity” are in top collaboration with top lenders.
Alibaba recently inked an agreement with China Construction Bank Corp in March 2017 that will facilitate sales of the bank’s wealth management products using Alipay (a mobile payment app). CCBS has also inked a similar agreement with Alibaba Ant Fortune platforms.
Baidu Inc partnership to establish an intelligent bank
Baidu announced its intention to establish an intelligent bank in partnership with the Agricultural Bank of China Ltd. The bank will utilize the technologies of the tech giant such as cloud computing, artificial intelligence, and data.
With these developments, it appears that the race has just begun and the future is very promising. Many banks have always sought for technologies to fill the void in their systems, and these partnerships are timely.
JD.Ccom Inc, one of the top e-commerce in China has also inked fintech partnership. In its agreement with ICBS (the China’s largest bank by deposit), JD.Com will help to work on technologies to increase retail banking, distribute loans for small enterprises, and consumer finances.
In his argument, Li Chao, the senior analyst at iReserach in China points that the fintech engagements will help players to lever their strengths with the focus on dominating the industry.
For example, JD and Alibaba might consider leveraging their retail inclined operations by working on products in the sector. In a different way, Tencent and Baidu might want to enhance their artificial intelligence and cloud computing. The fintech according to Li is just taking off, and the future is really interesting.
Enhancing efficiency and anchoring growth
The underlying drive for these fintech partnerships is to make the business environment more effective. With the partnership, accessing consumer data and making the righty decisions will be easy and fast.
This will work towards enhancing efficiency in service delivery. However, people should expect a lot of adjustments as the partnership test their new technologies. At this rate, you can anticipate that China will become a leader in another unique way.