PINTEC to expand in SEA Belt and Road countries through PIVOT Fintech in Singapore

Riding the wave of China's One Belt, One Road initiative, Beijing-based financial technology company PINTEC Group has expanded into Southeast Asia with a venture in Singapore. Founded in 2012, PINTEC provides financial services powered by artificial intelligence such as robo-advisory services, digital lending, online mutual funds and online insurance brokerage services.

William Wei, CEO, PINTEC, said that Singapore is an ideal launchpad to do business in Southeast Asian countries. "We are a leading fintech company from China, so we are taking the initiative to expand our footprint in Belt and Road countries," said Wei. "There is an increasing number of Chinese fintech companies who are making their mark in Southeast Asian countries in response to the government's Belt and Road initiatives."

The Silk Road Economic Belt and the 21st Century Maritime Silk Road initiatives, known collectively as One Belt, One Road, were first announced by China President Xi Jinping in 2013. The China-initiated strategic plan involves more than 60 countries, encompassing more than 50% of the world's population, and one third of the global economy. The plan creates an economic land belt that includes countries on the original Silk Road through Central Asia, West Asia, the Middle East and Europe, while the maritime road links China's port facilities with the African coast through the Suez Canal into the Mediterranean.

PINTEC's first venture outside of China, PIVOT Fintech, targets the Southeast Asian market, which offers huge business potential due to its steadily growing middle class. According to the World Bank, the middle class of South and East Asia will account for 8.9% of the global population and 7.7% of global income by 2030. This growth in population and income make Southeast Asia an important consumer market and also an engine for economic growth in the region, PINTEC said.

PINTEC also notes that the region's Internet population is also growing, a key prerequisite for interest in fintech services. The number of Internet users in Southeast Asia increased by 31% to 80 million at the end of January 2017 over the same period a year ago. Active social media users also grew by 31% to 72 million as  of end-January over the same period.

"The penetration level of inclusive financial services is relatively low in populous Southeast Asian countries," PINTEC's Wei said. 

PIVOT is leveraging PINTEC's strengths in big data, algorithms and deep learning to offer dynamic financial services to institutions in Southeast Asia. The company is already working to provide digital solutions to banks, securities companies and wealth managers in Asia, focusing on Singapore and Malaysia to begin with. 

"PINTEC's well-established team, which includes top engineers, data analysts and staff members, will be devoted to support PIVOT in tapping the potential in the Southeast Asian market," said Zheng Yudong, CEO of POLARIS, the robo-advisory unit of PINTEC. POLARIS provides customers with machine-generated asset portfolios which are adjustable in real time in response to market changes, and customised to meet individual customer's risk appetite.

POLARIS, which launched in June 2016 as PINTEC's flagship digital wealth management platform, has partnered with Minsheng Securities and Anbang Insurance Group to bring digital financial services to more users. PIVOT is now bringing POLARIS' services and products to even more users through partnerships in Singapore and other Southeast Asian countries. 

PINTEC is in part backed by FWD Group, the insurance unit of Pacific Century Group.