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Ping An expects to invest US$15 billion

Ping An Insurance (Group) Company of China, Ltd. (hereafter “Ping An” or “the Group” or “the Company”, HKEx: 2318; SSE: 601318) today showcased its world-leading fintech and healthtech achievements, which underpin its “Finance + Ecosystem” strategy. The Group expects to invest RMB100 billion (US$15 billion) in technology R&D in the next decade to consolidate its technology leadership in the financial services industry.

At the Group’s Investor Day on technology today in Hong KongJessica Tan, Deputy CEO, COO and CIO of Ping An Group, said, “Our consistent focus and investment in technology R&D is paying off. We have already established global leadership in the cutting-edge technologies of AI, blockchain and cloud computing, which will be driving innovations in the financial industry for years to come.”

Each year the Group invests one percent of its revenue in the R&D of fintech and healthtech. Ping An has invested US$7 billion in R&D in the past decade and expects to invest a total of RMB100 billion (US$15 billion) in the coming ten years.

Ping An’s technology development is fundamental to the execution of its “Finance + Ecosystem” strategy, which is driving Group business growth. The core technologies of AI, blockchain and cloud computing has and will continue to empower the Group’s five ecosystems — financial services, health care, auto services, real estate services and smart city services. Through applying innovative technologies to these ecosystems, Ping An will be able to seamlessly engage with customers to offer simple, professional and relevant financial services to help them better their lives and to help Ping An growth its business.

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Ping An’s technology development has four key advantages:

  • Rich business scenarios – achieved from hundreds of cities and millions of businesses through its ecosystems.
  • Massive real-life data – covered 880 million population across finance, transportation, healthcare, education and daily lives
  • Strong talent – 5 research institutions; 23,000+ technical talents; 1,000+ top scientists and 2 overseas R&D centres
  • Long-term sustained investment commitment – US$7 billion invested in the past decade; US$15 billion in next decade. Healthy long term profit growth and ROE, compared to traditional peers, allows Ping An to make significant long term investments in technology

In addition, Ping An’s five eco-systems have accomplished market-leading positions in many areas, including:

  • Financial Services Ecosystem: OneConnect being the largest financial services SaaS (Software as a Service) platform, serving 483 banks (including 93% of city commercial banks), 42 insurers and 2,400 other financial institutions. The platform represents one of the largest commercial blockchain platforms in commercial deployment in the world, with 40,000 nodes involving 200 banks, 200,000 corporates, and 500 other commercial and government entities. TPS (Transactions per Second) of the blockchain is at 50,000.
  • Healthcare Ecosystem: Good Doctor being the largest mobile health portal, with approximately 250 million users, (traffic being more than the next top 2-10 players combined).
  • Auto Services Ecosystem: Autohome being the market leader connecting the largest online user volumes among auto buyers, OEMs and dealers in China. Its market capitalization increased more than 3 times after Ping An’s acquisition in 2016.
  • Smart City Ecosystems: Ping An Smart City is a front runner in the sector in China covering 60+ cities, with 115 projects in progress, boasting the industry’s most comprehensive solutions that are deeply integrated with city government on administrative processes, management, services and technology.
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Jessica Tan added: “Ping An’s strategy is guided by a vision to become a world-leading technology-powered financial services group. In the last decade, the Group has transformed its financial service offerings by using technology to pursue innovation, boost efficiency, cut costs, improve experience and manage risks. We have deployed our technology commercially in the market place and we are now exporting our technology by offering our solutions to other market players to use.”

The Group’s retail customers reached 182 million customers at the end of September this year. The internet user base using Ping An’s five ecosystems has surpassed half a billion, contributing more than a third of the 33.4 million new customers acquired in the first nine months of 2018.

In terms of technology outlook, Jessica said, “Technology advances are changing our lives and the way we do business. Ping An is leading the change in AI, blockchain and cloud, particularly in the five ecosystems of financial services, healthcare, auto, real estate and city services. Our technology is deployed and supporting our customers already, from the Hong Kong Monetary Authority eTradeConnect, to serving 3013 financial institutions, and to the person on their mobile looking for a loan to buy a car or seek medical advice or help their children’s education. AI, blockchain, and cloud are already helping people better their lives and achieve their life goals.”

Aneta Larkins


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