Ping An, a World-Leading Technology-Powered Retail Financial Services Group

Ping An is an originated Shenzhen enterprise, and is as famous as Huawei, Tencent, and Vanke. All of them start from Shenzhen, and provide products or services in China and all over the world. In Shenzhen, the highest building is Ping An Mansion

Ping An is founded in 1988 by Ma Mingzhe, at first, Ping an only provides Property & Casulty insurance in She Kou, Shenzhen. After serveral years of learning from abroad, Ping An launches Life & Health insurance in most cities in China. One of the distinguished advantages of Ping An is the leader’s vision and management skills, after 30 years development, Ping An is a financial conglomerate, its services covers insurance, banking, asset management, and five ecosystem. 

Ping An business is complex, however, its strategy is very clear, we can see from the below structure. 

Ping An endeavors to become a world-leading technology-powered retail financial services group upholding the belief of “technology-powered financial services for a better life” and boost the development by deepening “finance + technology” and exploring “finance + ecosystem”. Focusing on two major industries of “pan financial assets” and “pan health care”, the Group will apply innovative technologies to five eco-systems, i.e. financial services, health care, auto services, real estate services, and smart city services. The Group aims to provide customers with the excellent experience of “expertise makes life easier”, achieve sustainable profit growth, and secure long-term stable returns for shareholders.

The subsidiaries of Ping An include Ping An Life, Ping An Property & Casualty, Ping An Annuity, Ping An Health, Ping An Bank, Ping An Trust, Ping An Securities, Ping An-UOB Fund and so on. Covering the entire financial services spectrum, Ping An has become one of the few financial groups in China that can provide customers with a full range of financial products and services, including insurance, banking and investment. In addition, Ping An has also actively explored fintech business via its subsidiaries including Lufax, Ping An Good Doctor, OneConnect, Ping An Haofang, and E-wallet, and has seen significant growth in terms of size and user base.

If we want to understand Ping An business, we can focus on the technology and retail part. The chairman Ma Mingzhe said,  “we apply innovative technologies to our traditional financial businesses and five ecosystems, namely financial services, health care, auto services, real estate services, and smart city services. Internally, we continue to promote data-driven smart operations. Externally, we empower open platforms to boost our main financial businesses.”

Let’s see how sucess Ping An has achieved in technology field. With Ping An take huge investment in technology, it become a widen moat for Ping An to expand services to customers.

Focusing on retail customers,  Ping An adheres to the philosophy of “one customer, multiple products, and one-stop services.”  Ping An provides customers with diverse, excellent products and services by empowering financial services with technologies, empowering ecosystems with technologies, and empowering financial services with ecosystems. Retail business has become a strong growth driver as its operating profit grew steadily thanks to increasing retail customers, contracts per customer, and product profitability.

Currently, Ping An  provided 196 million retail customers and 576 million internet users with financial products and services under an integrated financial business model of “one customer, multiple products, and one-stop services.”

The best way to measure a company is to see the business perfromance, let’s look at Ping An from its IPO in 2004 to 2018, and we can find out how great Ping An is. The shareholders equity has increased 20 times during the last 14 years, and the averaged ROE is more than 15%. 

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