Sorry, this entry is only available in European Spanish.
Yesterday Ping An, China’s largest insurer closed a USD $4.5 Bln round of private funding to help grow affiliates include Lufax.com, the peer-to-peer lending platform, and online payment company 1qianbao.com.
The three “Mas” invest in Lufax
To offset tax only 10 well heeled investors were invited which included collaboration between the “Three Mas”, a group that includes occasional competitors Jack Ma Alibaba, Pony MaTencent and Ma Mingzhe, Ping An chairman.
%2100 Growth in Lufax Lending
Finally Lufax is the third largest P2P platform in the world and easily the fastest growing. According to the company, Lufax grew online originations in 2013 to 3.3b yuan ($528m) for an amazing 2100% growth and they expect to originate 10-15b yuan ($1.5b to $2.6b) in 2014. Their growth vaulted them ahead of every P2P platform except for CreditEase and Lending Club. According to their CEO, Greg Gibb, their primary motivation is to create the largest online wealth management firm in China and they use P2P as an inexpensive acquisition channel to acquire new investors. They have been able to upsell additional Ping An insurance and wealth management products and they have successfully grown non-P2P products to 3x the size of their P2P business.
Click here for a great Bloomberg video interview with Mr. Gibb.
Chinese P2P Sector is Very Active
With over 10,000 P2P platforms and 15 years of experience Chinses P2P growth overtook ROW. CreditEase is the largest P2P lending platform in the world with USD $9.6b in loans. China Rapid Finance is a 12 year old company that provides consumer credit management solutions to for 50% of all credit cards that have been issued in China. Dianrong focuses on the 42 million SMBs while PPDAI’s lends to online small businesses that sell through Alibaba/Taobao.
Say what? Youv’e probably not heard of Singles Day but Alibaba http://biq.com.mx/english-alibaba-forty-thieves/ has turned the Chinese valentine day, known as “11 11”, into an online shopping bonanza racking up USD $9.3 billion and in sales last Tuesday.
Cainiao, the logistics arm Alibaba founded in 2013, coordinated 50,000 delivery outlets and 657 logistics centers. China Post, the state-owned postal said 650 million packages were delivered. To put that in perspective, that is more than the entire yearly capacity of Mexico’s private postal network.
In Britain, loan volumes are doubling every six months. They have just passed the £1 billion mark ($1.7 billion). In America, the two largest P2P lenders, Lending Club and Prosper, have 98% of the market. They issued $2.4 billion in loans in 2013, up from $871m in 2012. Streetscore partner Demyst provides the fast track approvals and credit scoring.
In December, Francisco González, BBVA Chief Executive, in an article we dubbed, “Competing for the Future”, was taking aim at Google and Amazon. Now he explains why he is shelling out on Simple.
On a recent flight from Mexico City to Tijuana, I picked up a day old copy of the FT. It was one of those editions that was packed with great reads. An article from BBVA Chief Executive,Francisco González, was the stand-out. Why anybody is spending USD 500,000 on a new branch distribution, instead of investing in Big Data to understand better their customers is beyond me.
Bankers beware. Branch transactions reach point of inflection. For closing! Now is better than ever to evaluate the performance of the branch network.
Hardcore bankers feel they have some regulatory barriers to entry that will stop Google, Amazon and Wallmart eating their lunch. I beg to differ. Remember what Gordon Gekko once said in the Glass-Segal or Big Bang era; “Lunch is for Wimps”, especially so now in a 24 hour data driven bank.
Accenture have published today their report on Digital Disruption in Banking.
– 25% of customers would likely consider a branchless digital bank.
– three-quarters of US customers—two thirds in Canada—consider their banking relationship merely transactional (with no differentiated offering).
– More than half of customers want their bank to proactively recommend products or services.
Using 4,000 retail banking customers in the US and Canada, the customer relationship at traditional banks is susceptible to disruption, despite the fact that in the US nearly 40 percent of customers—64 percent in Canada—have been with their current bank for the past decade or more.