The Chinese finance industry is all set to take off to a new unseen height as Alibaba along with its affiliate Ant Financial Services Group is planning an online banking business by the following June. This massive penetration into the Chinese online network was held on last Thursday (09/04/15) of an e-commerce tracking stock index.
Alibaba plans to come up with an online banking service “MYbank” from June, 2015
According to the General Manager of Ant’s finance division, Yuan Leiming this is a business plan to compete with their arch –rival Tencent Holdings Ltd which has its own online bank started in January. This plan of entering the online bank is seen as just the start of a huge finance business as Ant has address interest in starting up several services like banking, credit, loans and insurance in China. The planners are also working upon sectors like insurance and investment which will be new choices for the Chinese financial society.
Alibaba is a globally renowned e-commerce company which is China’s largest is combining together with Ant’s finance services group which has the country’s most popular online payment service Alipay.
Observers see this as a great way to build in top quality consumer information therefore providing useful data for businesses.
The IPO which is to be launched by Ant Financial Services Group is expected to be an eventful one in the Chinese share market after its partner Alibaba had a great run at NASDAQ last September.
Basically, the Chinese banking and finance industry is ought to undergo massive changes as there are a number of additional new banking and financial services in the upcoming few years. Tencent Holdings Ltd and Ant’s Financial Services Group are two amongst the many privately approved projects in the sector.
The planned MYbank Internet bank’s 30% stake will be held by Ant Financial which in turn will have several stakeholders in smaller volumes.