Latest Alibaba news is regarding the opening of MYbank. We all are aware of the massive e-commerce business that the company has in China and also the U.S IPO that was recording breaking and held by it last year. However, there is a lot more to the Hangzhou based Chinese company than only owning a e-commerce business. As of today, the latest edition is an online bank.
Backed by the e-commerce giant, MYbank is an online bank which had been opened yesterday with an aim to provide the services “for the little guys.” This bank service is an all-digital one. This suggests that there are no physical branches of the bank but still it would be open all the time. It is particulary for those who are ending up shore changed by what current norms are in the banking system. SMEs that are struggling to get themselves settled in the financial bracket for services and loans and also it is for the people who have accessing the branches of banks while residing in the rural areas.
Alibaba news reports that the president for Ant Financial expressed that it is the mission of the company to address the needs of the people in China who do not have much access to the financial services.
Furthermore, he said that the service will provide flexible loans to small enterprises or even small ones, the services are aimed for the “little guys” of the country and not the rich ones.
In the start, the service is aiming to provide up to $800,000 of loans to SMEs, entrepreneurs, enterprises and consumers. However, it still awaits the final green signal from the authorities before pursuing with its purse of $640 million.
MYbank has a belief that customers can get the savings without the processes that are expensive and elongated systems that conventional banks have to deal with. For instance, there is a usage of cloud computing instead of IT systems that the physical banks have and its staff is only 300 employees due to have a complete digital presence.
Not only that MYbank is capable to be disruptive, specifically with the backing of Alibaba that has a huge presence in the native country but Jing has aim to also work with traditional peers in the country pertaining to banks.
It is to be noted that Chinese giant is not the only one going for banking. Tencent had piloted WeBank which was the first digital bank in the country. Tencent is the creator of WeChat which is the most popular chat app in China. Tencent and Alibaba are quite well known competitors and are looking towards monetizing and enhancing the presence globally.