NextGen Models in Capital Markets: Ant Financial
The biggest threat to incumbent financial institutions may now be coming from large technology companies, or ‘TechFins’, as opposed to FinTech start-ups. Jack Ma, head of the world’s largest e-shopping platform, Alibaba, coined the term “TechFin”, referring to his mission to help people and companies around the word gain access to capital. This mission is trusted to Alibaba’s affiliate company Ant Financial, the world’s most valuable FinTech unicorn, dubbed a ‘bank killer’ by some. Companies in both retail and wholesale financial services should take note.
Ant Financial’s businesses include; Alipay, a mobile payment system used by 520 million people in 70+ countries; the world’s largest money market fund; a third-party financial asset and wealth management platform; insurance platforms; and, a private bank. Half of Ant’s customers use three or more categories of its services. Recently its technology has been placed at the core of deals in both insurance and brokerage.
This report explores Ant Financial’s financial business and technology model, reviews its plans for international expansion and presents views, based on Tabb Group outreach, on its potential impact on wholesale financial services. The report includes details of how Ant Financial has leveraged innovative technologies, including big data, cloud, facial and speech recognition, AI and blockchain to offer a range of services including financial services, payment, shopping, medical services, and more, all accessible via integrated mobile applications.