Chinese e-commerce giant Alibaba hasfolded six different businesses into a single business unit as part of aconcerted push into the financial services industry.
The sixsubsidiary companies comprise Alipay and Alipay Wallet, Yu’e Bao, a moneymarket fund with 570 billion yuan ($93 billion) under management; Zhao Cai Bao,a third-party financial services platform; micro-loan provider Ant Micro; andMYBank, a private bank.
Fresh from a successful multi-billion dollar IPO, Alibaba has made no secret ofits intentions to disrupt the traditional finances services industry throughthe use of Web technology. The MYBank unit was set up after the companysuccessfully applied for a banking license from Chinese authorities inSeptember, while Alipay is recognised as a powerhouse in online paymentprocessing.
More than ever,today’s financial institutions need to keep a close eye on new banking andpayments innovations – both from traditional competitors and from industrydisruptors. New and expanded businessmodels from online, e-commerce, and other firms are offering new and innovativecapabilities that are piquing the interest of banking customers. Consequently, banking leaders must be morevigilant than ever to be able to be in a position to offer a wide variety ofproducts and services to delight their customers and members.
Overview by Ed O’brien, Director, Banking Channels for Mercator Advisory Group
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