Ant Group has become the most valuable financial technology enterprise in China with a value of 2.1 trillion yuan. Credit Suisse expects Ant’s revenue to grow at 34% CAGR from 2019-2022e with digital fintech services as the key driver.
Lufax Group is a leading technology-empowered personal financial services platform in China, backed by major internet companies, such as Ant Group, WeBank and Tencent Licaitong.
Lufax primarily addresses the large unmet demand for personal lending among small business owners as well as salaried workers in China, and they provide tailor-made wealth management solutions to China’s fast-growing middle class and affluent population.
As of June 30, 2020, Lufax total balance of retail credit facilitated reached RMB519.4 billion (US$73.5 billion), and the total client assets generated through its online wealth management platform reached RMB374.7 billion (US$53.0 billion), ranking number two and number three, respectively, among non-traditional financial service providers in China such as fintech companies, online-only FinTech companies and online lending platforms, according to Oliver Wyman.
Their strong cooperation with the Ping An ecosystem allows them early access to ongoing investment in technology innovation in financial services, including through Ping An Group’s 8 research institutes and more than 21,000 patents and patent applications.
Through commercial relationships across the Ping An ecosystem, Lufax benefit from potential access to Ping An Group’s approximately 210 million financial services customers, a proportion of which are small business owners and middle class and affluent investors.
Over the three years from 2017 through 2019, Lufax's total balance of loans facilitated grew at a CAGR of 26.6%, while its total wealth management client assets, excluding legacy products, grew at a CAGR of 39.4%.
As of June 30, 2020, Lufax served 44.7 million registered users and 12.8 million active investors, and 75.4% of its total client assets were contributed by higher value investors with client assets above RMB300,000 (US$42,462).
As of June 30, 2020, its average wealth management client assets were approximately RMB29,330 (US$4,151), more than three times higher than the average client assets of the other top 5 non-traditional financial service providers which is estimated to average around RMB8,000 (US$1,132).