Chinese Tech Companies on the Rise and Banks are Helping Them
The rise of Chinese technology companies are being assisted by their local banks. In an article from CNBC, “many local banks are looking to the firms for help rather than build their own in-house services. With banks partnering with these tech firms, exponential growth can occur; not just for the company, but also for the economy.”
Even though China has the second largest economy, banks are under a bit of pressure to work with financial technology partners. Why? They need to beat their competitors.
Online shopping and the overall e-commerce experience has provided China’s financial institutions with a vast amount of data about their consumer’s behavior. This data will allow the institutions to understand behaviors and make lending decisions to the companies.
Technology giants, Alibaba, Tencent, and Baidu have all partnered with Chinese banks. This will continue to grow and increase the economic status of China. This makes us think...Is China becoming the worlds technology powerhouse?