Ping An Co-CEO Sees Greater Bay Area Opportunity for Hong Kong with Three Challenges ahead

Rhea-AI Summary

Jessica Tan, Co-CEO of Ping An, emphasized Hong Kong's pivotal role in the Greater Bay Area (GBA) during Hong Kong Fintech Week. She identified three main challenges: navigating multiple regulations, supporting SMEs, and facilitating skill flow. Ping An OneConnect initiatives have benefitted over one million SMEs by providing easier access to RMB 68 billion in loans. The company is also investing in cross-border talent development through internships and its Gamma O platform, which supports fintech innovation.

Positive

• Ping An OneConnect has served over 1 million SMEs, dispersing RMB 68 billion in loans.
• Ping An is focused on developing cross-border talent with an internship program and fintech incubator.
• The average non-collateralized lending facility is HKD 1.7 million, significantly streamlining the lending process.

Negative

• Challenges in regulatory cooperation across Guangdong, Hong Kong, and Macao may hinder GBA integration.

HONG KONG and SHANGHAI, Dec. 6, 2021 /PRNewswire/ -- Hong Kong, as an international financial center, is positioned to play an important role in the building of the Greater Bay Area (GBA), says Jessica Tan, Co-CEO of Ping An Insurance (Group) Company of China, Ltd. (hereafter "Ping An" or the "Group", HKEX: 02318; SSE: 601318).

Ms. Tan, speaking last week at Hong Kong Fintech Week, said realizing full potential of the GBA, integrating Guangdong, Hong Kong and Macao, means overcoming three key challenges: dealing with multiple regulatory jurisdictions, supporting SMEs who drive cross-border trade, and enabling the flow of skills and talent.

"The GBA is a huge and exciting area," Ms. Tan said. "I really hope we can take advantage of this, particularly Hong Kong as an international financial center."

Regulatory cooperation needed

Across the three jurisdictions of Guangdong, Hong Kong and Macao, there are multiple government departments, each with their own standards and procedures, Ms. Tan said. Technologies, such as blockchain, can be used to create interoperable standards, enabling data to be shared across different systems for transactions in areas such as supply chain, trade finance and healthcare.

"Hong Kong could actually take the lead because it's one of the international hubs to create such a platform to consolidate Hong Kong's own various government data," she said.

Ping An also has experience in supporting governments: Group associate company OneConnect provided the technology for a platform for small and medium-sized enterprises (SMEs) launched in Guangdong Province to address the issues of "difficult, expensive and slow financing" of SMEs. Companies registered their assets, liabilities and transactions in real time with a wide range of government departments and were able to get easier access to credit from banks and other financial institutions. Now the platform has served over one million SMEs and dispersed over RMB 68 billion of loans.

Providing cross-border trade and financial services for SMEs

More than half of the trade within the GBA comes from small and medium-sized businesses (SMEs), Ms. Tan said. Financial institutions could streamline their processes to offer SMEs better and faster access to credit.

"In reality, a lot of the economic activity is not just done by big multinationals, but SMEs," she said. "SMEs are not yet equipped with the ability to operate across the region seamlessly. They need help to lower the cost of doing business. This is where financial services can play a part."

Ping An OneConnect Bank (PAOB) is focused on supporting SMEs. Capitalizing on Ping An Group's technological prowess, the Bank provides online and smart cross-border financial products and service experiences to mainland China, Hong Kong and Macao investors. Of its customers, 25% have never borrowed from a bank before, and of the 75% who have, 60% of those have never had non-collateralized lending. PAOB is streamlining its lending process with a risk model based on trade and other data, making the application process as short as a few days, down from one to two months. PAOB's average non-collateralized lending facility is now HKD1.7 million.

Grooming Cross-border Technology Talents

Thirdly, the GBA needs cross-border flow of skills – including individuals and small fintech companies, Ms. Tan said.

Ping An is launching an internship program to give young financial services and technology professionals experience working cross-border. It also has an incubator accelerator for small fintech companies, OneConnect's Gamma O platform, to give fintech start-ups access to the cutting-edge technologies, such as open application programming interfaces (APIs) applying big data and artificial intelligence, and the opportunity to produce their own innovative solutions for financial institutions using the platform.

About Ping An Group
Ping An Insurance (Group) Company of China, Ltd. ("Ping An") is a world-leading technology-powered retail financial services group. With over 225 million retail customers and 634 million internet users, Ping An is one of the largest financial services companies in the world. Ping An focuses on two over-arching domains of activity, "pan financial assets" and "pan health care", covering the provision of financial and health care services through our integrated financial services platform and our ecosystems in financial services, health care, auto services and smart city services. Our "finance + technology" and "finance + ecosystem" transformation strategies aim to provide customers and internet users with innovative and simple products and services using technology. As China's first joint stock insurance company, Ping An is committed to upholding the highest standards of corporate reporting and corporate governance. The Group is listed on the stock exchanges in Hong Kong and Shanghai. Ping An ranked 6^th in the Forbes Global 2000 list in 2021 and ranked 16^th in the Fortune Global 500 list in 2021. Ping An also ranked 49^th in the 2021 WPP Kantar Millward Brown BrandZ^TM Top 100 Most Valuable Global Brands list.

For more information, please visit www.group.pingan.com and follow us on LinkedIn - PING AN.

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SOURCE Ping An Insurance (Group) Company of China, Ltd.

FAQ

What challenges did Ping An identify for the Greater Bay Area?

Ping An identified three challenges: regulatory cooperation, support for SMEs, and the flow of skills and talent.

How has Ping An supported SMEs in the Greater Bay Area?

Ping An has provided technology and financial solutions, helping over 1 million SMEs access RMB 68 billion in loans.

What initiatives is Ping An implementing to develop cross-border talent?

Ping An is launching an internship program and an incubator for fintech startups to foster skill development.

What is the average non-collateralized lending amount offered by Ping An OneConnect Bank?

The average non-collateralized lending facility is HKD 1.7 million.

How does Ping An aim to streamline financial services for SMEs?

Ping An is implementing a risk model based on trade data to reduce the lending application process from months to days.