Ping An Technology CEO expects future growth in the area of Financial Technology to be “exponential” in the future. Ping An Technology, a subsidiary of Ping An Group, a major mega institution that does insurance, banking and technology heard its CEO Ericsson Chan make comments today regarding the future of Financial Technology. “I think we are just hitting a tipping point because of all the investments…..and the pie is getting bigger also….the growth is not linear, it`s going to be exponential,” according to me Chan. This was reported on CNBC in an interview on “Squawk Box” today.
For the first nine months of 2018, the fintech and health tech businesses contributed to about 6.3 percent of Ping An Group’s operating profit, up from 0.9 percent only a year ago. On Wednesday, Ping An Group said it expects to invest about $15 billion in technology R&D over the next decade and try to consolidate its leadership in the financial services industry. This level of spending will become the norm in China in 2019 and 2020.
Mr Chan commented that the firm is working on five different ecosystems and is working into AI or artificial intelligence, blockchain and cloud. which he said cut across all sectors. Clearly this firm has set its targets at high levels and is competing to win. He added that the firm develops its cloud technology out of necessity and that once it is good enough for his firm, they can then share it with others.
We will be updating on Ping An Group and others in the future here on Classiarius.