An Overview of Pingan's OneConnect

Written by Will Huyler || May 20 2019

Ping An is a Chinese holding conglomerate with one of the largest market values in the country. Founded in 1988, it is valued at over $125 billion and is the largest insurer in the world to this date. Ping An is known for its fintech subsidiary, OneConnect which is a cloud-based technology service designed for small to medium-sized financial companies. OneConnect is the largest financial cloud platform across all of China and stretches all the way to Singapore.

OneConnect operates various technological solutions including blockchain, artificial intelligence, and biometric identification. According to Ping An, OneConnect bases itself on acquiring customers, risk control, products, customers service, and operation. OneConnect has over 100 products with tools in digital sales solutions, digital risk management solutions, digital product solutions, digital service solutions, and digital operation solutions.  Currently, the service has partnered with about 460 banks and over 2,000 financial services firms. OneConnect promotes itself based on reduced risk, efficiency, and increased customers.

In 2018 OneConnect raised over $750 million in funding and was valued at $7.5 billion. In that same year, it generated $266 million in revenue with an expected increase of 168 percent in revenue on a year-to-year basis.  OneConnect is growing at such a rapid rate because of challenges in the Fintech industry in Asia.

There is an increased demand for successfully proven fintech services in Asia. Currently, smaller financial institutions are looking to reach new markets and grow their customer bases using extremely effective technology with smaller amounts of capital. OneConnect offers trusted services, for example, their facial recognition technology has a 99.8 percent success rate and the technology was rated the number one in the world by Labeled Faces in the Wild.    

OneConnect’s biometrics identification is one of its most advanced offerings. Products include image recognition, voiceprint recognition and other time and money saving programs that are extremely advanced. OneConnect recently launched new micro-expression technology that can help with determining if a potential customer is lying through video. This allows for faster approval of loans and a much more sophisticated risk management system.

Most recently, OneConnect took its services to Indonesia, which has one of the fastest growing internet economies in Southeast Asia. With this expansion, OneConnect has partnered with companies like Asparindo to conduct workshops in order for the product to be run efficiently and as cost-effective as possible. New businesses in countries like Indonesia create great opportunities for OneConnect.

OneConnect was also recently granted a virtual banking license in Hong Kong which will allow for new methods of financial services provision online. By the end of the year, the service will be offered in Hong Kong. With over 160 total licenses the race for virtual banking is underway in Hong Kong. However, the regulations in the industry are becoming much more strict and limit the development of the industry as a whole.     

OneConnect continues to push its product to both domestic and foreign institutions with the hopes of increasing market share in the future. Chief Innovation Officer, Qiu Han recently stated, "It is a big market that cannot rely merely on a single company to provide all the technical services. Therefore, we look forward to cooperating with more fintech companies and innovative companies." This creates more opportunities for expansion through partnerships and possibilities of buyouts.

Southeast Asia has become one of the most sought out markets for the fintech industry in 2019. In 2018, investments in the fintech industry reached $5.7 billion an increase of 30 percent from the previous year. According to KPMG, In Southeast Asia 73 percent of the adult population lacks a bank account making this the perfect market for a fintech industry company. Southeast Asia also has a very tech-savvy population that creates new technology each and every year.

It will be important for OneConnect to continue to establish themselves in countries like the Philippines and Malaysia. However, they will need to continue to create new and innovative products to compete with the fast-growing competition. High demands such as digital payments and mobile wallets are at an increasing need in underdeveloped countries in Southeast Asia such as Cambodia.

OneConnect is arguably one of the most successful fintechs in Asia today. Through advanced technology and sophisticated development, it will continue on track to becoming a market powerhouse. However, they still have a ways to go especially with increased competition in such a large market. If OneConnect can differentiate itself even more in the market it will soon become an even larger powerhouse.