The Chinese fintech sector has produced 30% of the world’s fintech unicorns and shows no signs of slowing down
Chinese fintech has grown enormously over the last few years, challenging the traditional Chinese financial sector more intensely than anywhere else in the world. The success of China’s fintech industry has been made possible by two main factors. Favourable Chinese regulators who have consciously made the decision to let alternative finance thrive are a major contributor. There is also a significant amount of unmet consumer demand for credit and other financial services throughout the country, which has led to a hunger for new financial products and services. Like some of their counterparts in the West, Chinese banks have traditionally focused on large corporate customers leaving smaller retail customers severely underserved.
This month, Business Insider Singapore, CBInsights, Funderbeam, and Crunchbase released their round up of the world’s fintech unicorns. Out of the 27 fintech unicorns from around the world, ranked by value, eight are from China. This included four of the top five most valuable fintech companies.
In first place, with a value of $60 Billion is Ant Financial, which runs China’s biggest mobile payment product Alipay. With an estimated 450 million users, the company is a massive force in the industry. In second place, with a value of $18.5 billion is Lufax, a Chinese peer-to-peer loan and finance platform. Lufax has funded 20,000 loans worth $2.5 billion since its launch in 2011.
Coming in at number three on the list with a value of seven billion dollars is JD Finance, which offers online financial services tied to online shopping. A spin-off from Chinese online shopping giant JD.com, JD Finance provides credit for consumers shopping on the JD.com website, as well as other financial services. The fourth largest fintech unicorn in the world, valued at $5.9 billion was another Chinese company called Qufenqi, which enables Chinese consumers to buy electronics in installments.
Other Chinese fintech unicorns on the list include ZhongAn Insurance, an online-only insurer, Jimubox, a P2P loan provider, China Rapid Finance, a P2P lender and Rong360, a financial comparison website.
For a full list of the world’s fintech unicorns, ranked by value, check out businessinsider