"https://www.antfin.com/index.htm?locale=en_US E-commerce is rapidly becoming an important alternative marketing channel for smallholders' production in rural areas. The innovative Ant Financial programme is designed to address working capital and short-term investment needs in agribusiness carrried out by the relatively poor rural population."

1. Janice Chen

2. A Snapshot on China’s Rural Finance Environment
4:1
Number of people that
have credit record
Urban vs. Rural
3.05
Funding shortage in
rural areas
Trillion RMB
329:1
Number of people
employed by FIs per
10,000 people
Urban vs. Rural
28%
Out of 9.81 billion
outstanding loan
balance
Rural Lending
Note: Data by Dec 2015

3. High
Operating
& Risk Cost
Limited
Information
& Asset
Credit
Constraints in
Rural Finance
Key Pain Points
Demand-side
Rural Borrowers
Supply-side
Rural FIs
Key Issue

4. High
Operating
& Risk Cost
Limited
Information
& Asset
Integrated Solutions
Possible Solution
Data
Tech
Rural Finance
Model
Demand-side
Rural Borrowers
Supply-side
Rural FIs

5. Rural Areas
Agriculture
Farmers
Ant Financial & Rural Finance Business
Rural Finance
Ant
Insurance
Integrated solutions

6. Our Mission
Our mission is to facilitate industrial innovation and
consumption upgrade, by serving rural users with
inclusive, convenient and sustainable financial
services, and to provide safe and reliable agricultural
products to consumers.

7. Rural dealers/
Small planters/
Small business
owners
30-50
million
Medium ticket size (1,500-15,000USD)
vs.
Limited information / assets
Rural consumers/
Individual online operators
500-600
million
Small ticket size (500-1,500USD)
vs.
High single operation cost
2-3
million
Big ticket size (>15,000USD)
vs.
High risk on agriculture production
Large
farms/
Cooperatives
Target Customer
Estimated
Market Size Pain Points
Our Target Customer

8. Supply chain finance model
Online + Offline lending model
Online lending model
Production
Business
Consumption
Major Loan
Purpose Our Solution
Our Business Models
Target Customer
Rural consumers/
Individual online operators
Rural dealers/
Small planters/
Small business
owners
Large
farms/
Cooperatives

9. Online
lending model

10. Minutes
for application
Second
for disbursement
Manual
operation
Online
lending model

11. Data
E-commerce
platform
…
Credit granted
with big data
Increase
credit limit
To provide credit service (for both consumption and business
purpose) to rural clients through our ability in data analysis
Online
lending model
Rural
consumers /
Individual
online
operators

12. Online
lending model
Yang Dechao
University student, Liulin Village, Qinghe County, Hebei Province
Partner of Rural Taobao
Coming back to Qinghe from Beijing, I became a Rural
Taobao partner.
With funds from “start-up plan for college students'
entrepreneurship in hometown village", we college students
see the hope of starting our own businesses.

13. We’ve never met before,
but we know about you
Through the "3-1-0” Online
lending model
Aggregated loans: 395.3 Billion RMB
Average ticket size: ~3,800 RMB
…
So far, it has already covered 2,781
counties of 31provinces.
Online
lending model

14. Online + Offline
lending model

15. Online + Offline
lending model
• CFPA (China Foundation for Poverty Alleviation)
Microfinance has provide inclusive finance to rural
grassroots Chinese for 20 years since 1996.
• Ant Financial became the second largest
shareholder after the CFPA since end of 2016.
93.8%
Rural
households
91.9%
Female
91.6%
With middle school
or lower diploma
24.8%
50 minority
ethnic groups
So far, it has covered 258 counties in 20 provinces, among which 81% are national or
provincial level poverty counties.

16. To guide idle urban funds to rural areas with Internet
Rural dealers/
Small planters/
Small business
owners
Urban
investors
Enhance credit online, and provide comprehensive insurance
Loan
Information
Offline group lending
funding needs
Online Intermediary
information platform
Investment
information
Online + Offline
lending model

17. Online + Offline
lending model
Ai Huangxi
Villager of Huantian Village, Sanshi Town, Pingjiang County,
Yueyang City, Hunan Province
I got a loan by mobile phone in three days, and bought
a moto tricycle to provide transportation service.
Finally, I do not have to earn my living in cities, and
can stay home to take care of my mom.

18. Dong Lifang
female, 52 years old.
Villager of Liulin Village, Qinghe County, Hebei Province.
I got a loan of RMB 20,000 from Ant Financial and bought
a cashmere carding machine to make money. After working
for half of my life, I held a wedding party for my son.
Online + Offline
lending model

19. Ma Yuming
48 years old, tractor driver,
Liulin Village, Qinghe County, Hebei Province
I applied for a loan of RMB 80,000 to buy a tractor from
Rural Taobao online.
It’s amazing experience.
Online + Offline
lending model

20. Supply chain
finance model

21. Data and management
of rural households
Targeted
procurement
Non-cash
Loan
Comprehensive
insurance
Sell on
Loan repayment
New Retail
Agricultural materials with
high quality go to rural areas
New Finance
Serve new kind of
rural households
New Retail
Fresh agri-products with high
quality go to urban areas
Production
material
supplier
Large
Farms/
cooperatives
Leading
Agri-
enterprises
To lead agricultural material &implements with high quality to rural areas,
and agricultural products with high quality going to urban areas
Consumer
Provide agricultural
materials and
technologies service
Purchase
products
Supply chain
finance model

22. s
• Technology
• Account system
• Online capacity
• Ecological resources
• Insurance products
• Frontline team
• Industry experience
• Policy resources
Cooperation with numbers of
well-known agi-enterprises
Business coverage of major
agricultural provinces in China
Service focus on breeding,
planting, agricultural supplies
and food circulation industries
Supply chain
finance model
Rural Customer Base Big Data

23. Supply chain
finance model
On December 28th , 2016, Charoen Pokphand, Alibaba Group and Ant Financial
announced a strategic cooperation in Wuhan. Based on mutual trust, the companies
reached a strategic partnership on agricultural food, e-commerce, financial services,
agricultural services, logistic, commercial retail and targeted poverty alleviation. The
partnership will focus on long-term development and leverage each other's strength.

24. Supply chain
finance model
Du Keqiang
Post-90s generation, college student, pig farmer,
Ganzhou City, Jiangxi Province
Ant Financial granted me a loan of RMB 1.5 million. More
importantly, I was able to complete the entire loan process
at home, which was quite convenient. I now repay my loan
via Alipay every month and accumulate credit online.

25. Supply chain
finance model
Hu Zhiquan
Farmer, Qianguo Country, Songyuan City, Jilin Province
It is hard to imagine that I can enjoy Internet finance
service. Now, I cherish my credit record very much.

26. Note: Data by March 2017
Rural Growth Products & Services
Rural Growth
Payments
163 million
payment users
Rural Growth
Loan
42.05 million
loan customers
Rural Growth
Insurance
140 million
insurance customers

27. Rural Growth Insurance Case
LIU Tiemin
55 years old, farmer
Shenze County, Shijiazhuang, Hebei Province
I spent RMB 50 to buy a agriculture insurance last year. After the corn has
been hit, I got RMB 800 compensation in my Alipay account immediately.

28. Rural Growth Payment Case
In 2017, Alipay launched an easy-to-use payment solution to help
mom-and-pop shops to enjoy comprehensive financial services
including payment, loans, and cash management.
Cashless society led by mobile payment

29. 3 Year “Grain Rain” Plan in China
1,000 1,000bn100
Leading Agri-
enterprises
Rural Areas &
Counties
RMB Loan
Disbursement
We hope our Chinese experience can be shared globally, bringing about
a rise in rural financial services in other countries or regions.

30. India
Paytm
Thailand
Ascend Money
South Korea
Kakao Pay
K Bank
Philippines
Mynt
Indonesia
Emtek
USA
EyeVerify
Australia
Paybang
Singapore
M-DAQ
Overseas Partners of Ant Financial
Enable local partners to promote digital financial inclusion

31. In Jan 2015, Ant Financial joined hands with Paytm. In
just two years, Paytm users soared from less than 30
million to over 220 million, making it the third largest
e-wallet in the world.

32. IN CHINA IN THE WORLD
Rome
Cooperation Opportunity with FAO&IFAD
Sichuan
Shanxi
Ningxia

33. THANK YOU
2017.07

34. New
Agriculture
Platform for
agricultural production
tools and technology
Upgrade online and
offline channels
Upgrade customers’
experience
Upgrade supply chain
and products
Platform for agricultural
products
Rural life service
platform
New rural finance
Big Data
Ecosystem
……
… …
New
Retail
Business
Accelerating
Financial
Functions
Appendix: Ant Financial's Rural Finance and Alibaba Ecosystem

35. Online
lending model
Rural Growth Loan Application Process