2. A Snapshot of China’s Rural Finance Environment
4:1
Urban vs. Rural
3.05
Trillion RMB
329:1
Urban vs. Rural
29.4%
Number of people that have
a credit record
Funding shortage
in rural areas
Number of people employed
by FIs per 10,000 people
Availability of formal credit
in rural areas
Note: Data as of Dec 2015
3. Key Pain Points
Key Issues
Limited
Information &
Assets
Demand-side
Rural Borrowers
Credit
Constraints in
Rural Finance
•
High Operating
& Risk Costs
Supply-side
Rural FIs
4. Key Pain Points
Integrated Solutions
Data
Limited
Information &
Assets
Demand-side
Rural Borrowers
Rural Finance
Model
•
High Operating
& Risk Costs
Supply-side
Rural FIs
Tech
5. ANT FINANCIAL
•
•
•
Ant
Ant
Ant
Financial
Financial
Financial
is a technology company that brings inclusive financial services to the world.
was officially founded in October 2014 and originated from Alipay, founded in 2004.
is dedicated to bringing the world more equal opportunities by building a technology-
driven open ecosystem and working with other financial institutions to support the future financial
needs of society.
6. Ant Financial & Rural Finance Business
Rural Areas
Rural Finance
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Farmers
Integrated solutions
Ant
Insurance
7. A Roadmap of Ant Financial Rural Finance
Phase 1: 2015-2016 Phase 2: 2016-2018 Phase 3: 2017-2018
• Rural Taobao: Rural Taobao
partners and their customers
• Households breeding cattle, pigs, • Mass rural residents in county
level or below
or poultry (New model of
Agriculture Households)
Downstream rural dealers
• CFPA Mircofinance: Covering
85% of poverty-stricken counties
and 82% of women in villages
•
Online lending model
Online + offline lending model Supply chain finance model Digitalized platform model
8. • Rural Taobao: Rural Taobao partners and their customers
• CFPA Microfinance: Covering 85% of poverty-stricken count
Development phase of Ant Financial rural finance
Phase 1: 2015-2016
ies
and 82% of women in villages
O n l i n
O n l i n
e
e
l e n d i n g
a n d o f f l
m o d e l
i n e l e n d i n g m o d e l
and rural farmers called the “310” model: 3
• Ant Financial uses big data and AI algorithms to provide loans to SMEs
minutes to apply for credit in bringing convenience to people, 1 second to approve
background analysis, and 0 people involved in the decision that to make sure the process is
based on substantial
fully automated,
• In counties and villages that with limited access to established financial services, we work with offline
acquaintances such as Alibaba Rural Taobao partners and CFPA Microfinance and provide users with various of
financial services including loans. The initiative has introduced across China including some poverty-stricken
counties.
9. Ant Financial rural finance concept
1
Inclusive
concept
2
Charitable
mentality
5
Power of
ecosystem
3
Commercially-
oriented
principle
4
Technology-
driven
innovation
10. • Households breeding cattle, pigs, or poultry (New model
of Agriculture Households)
Development phase of Ant Financial rural finance
Phase 2: 2016-2018
• Downstream rural dealers
S u p p l y c h a i n f i n a n c e m o d e l
• The supply chain finance model is to lead agricultural material & implements with high quality to rural areas,
and agricultural products with high quality going to urban.
By connecting the management system of agri-enterprises, we lend to the customers who have long term
business relationship with the big enterprises with non-cash Loan. The borrower can only use such kind of
loan to purchase raw material online. There is no guarantee needed, no insurance involved, and it is also 310
experience.
•
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300,000 118,817
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Development phase of Ant Financial rural finance
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Phase 3: 2017-2018
• Mass rural residents of county level and below
D i g i t a l i z e d
( i n c l u s i v e
p l a t f o r m m o d e l
r a l a r e
f i n a n c e i n r u a s )
• Work with financial institutions to build a Joint Loan platform with digital risk management capability that is
designed for residents of county-level and below, so as to extend financial institutions’ footprint to grassroots
and promote the growth of inclusive finance.
Work with county-level governments to build a platform to provide local public services. The financial services
are embedded in it. With the spreading of platform by local governments, inclusive finance get well known as
well.
•
12. Ant Financial rural finance-Inclusive finance at county-level
Fee payment
Visit doctor Public Housing
-'·
I
'-
Social insurance
Smart transportation
, '
~
Inclusive finance
in rural areas "
Utilities
Entertainment •
•
•
•
•
•
•
Neixiang County, Henan
Lankao County, Henan
Sheqi County, Henan
Fengqiu County, Henan
Ningling County, Henan
Yucheng County, Henan
Yongcheng County,
Henan
Anji County, Zhejiang
Tongwei County, Gansu
Linyao County, Gansu
•
•
•
Xintai County, Shandong
Qixia County, Shandong
Zhucheng County,
Shandong
Zoucheng County,
Shandong
Cao County, Shandong
Badong County, Hubei
Lichuan County, Hubei
Yuanan County, Hubei
……
Local official
hotline
Disaster alert
Education
•
Smart
food market
•
•
•
•
•
•
•
13. Rural finance focuses on farmers and agricultural industries
offering tailor-made financial services to them
Risk control
management
Supply
finance
Digitalized
model platform model
Resource
Financi
integration
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Product
R&D
ng
Risk cont
and
manageme
chain
model
i
Farmers
Agricultural
Industry
Online lending model
Online + offline lending model
Data
input
