Alibaba’s third-party payment platform Ant Financial tops the global ranking for the 100 best performing fintech companies. [File photo/Xinhua]
China’s financial technology (fintech) firms continue to lead globally, securing four positions in the top five in a recent industrial ranking.
Alibaba’s third-party payment platform Ant Financial tops the global ranking for the 100 best performing fintech companies, with micro-loan firm Qudian, wealth management company Lufax and insurance enterprise Zhong An entering the top five, according to a report by international accounting firm KPMG and investment firm H2 Ventures.
The firms are rated according to their capital raising volume and ratio, geographic and sector diversity, and consumer and marketplace traction.
“It is no surprise to see four Chinese companies in the top five. Fintech in China has seen rapid development, fuelled by the demand to address domestic needs,” said James McKeogh, Partner with KPMG China. “It is likely that we will see more of these players move to the international markets in the future.”
A total of eight Chinese fintech companies are on the list, a remarkable rise from just one company in the top 100 in the 2014 ranking.
“We have seen significant investment in China’s fintech sector in recent years, and an increasing appetite for innovative products, supported by the rapid pace of technology development,” according to Raymond Cheong, another KPMG China Partner.
China pledged in October to improve supervision in online finance, including peer-to-peer platforms, to contain risks, improve competitiveness and increase risk awareness.
Companies related to lending and insurance are gaining larger share in the full Fintech 100 list, while the creation of value in new sub-sectors such as regulatory technology as well as data and analytics make the fintech sector more diverse, according to the report.