The financing platform for SMEs, supported by OneConnect, was formally launched in China’s Guangdong province. Presently, the platform has access to data from government resources in 213 categories and is generating a corporate profile together with a risk evaluation for over 11 million companies. OneConnect has leveraged its own FinTech in blockchain, artificial intelligence and big data as well as the government’s digital data resources to resolve information asymmetry and provide financing to SMEs.
The SME financing platform enables financial institutions to acquire company information in accordance with laws and regulations. The blockchain technology utilised by the platform and the features of information sharing, privacy protection and mutual trust mechanism is beneficial in terms of accuracy and security of the corporate profile.
Financial institutions can strengthen their risk management capabilities as there are provisions for comprehensive commercial credit profiles for businesses, as well as solutions for supply chain financing, trade financing and intellectual property financing. The financing platform’s Intelligent Matching feature accepts and grants online unsecured financing credit.
In December 2019, OneConnect reduced its U.S. Initial Public Offering (IPO) valuation, according to media reports. The China-based company decreased the number of shares on offer and lowered the price range to $9 to $10 per share, according to the U.S. Securities and Exchange Commission filing. It plans to raise $260 million as against the original plan to raise $504 million; and is looking at a valuation of $3.6 billion which is around half the size of last year’s valuation of $7.5 billion when it raised $650 million from investors including SoftBank.
OneConnect is a leading technology-as-a-service platform for financial institutions in China. It is an associate company of Ping An Insurance (Group) Company of China. The company integrates extensive financial services industry expertise with technology to provide technology applications and technology-enabled business services to financial institutions.
Presently, the platform has connected with 129 financial institutions in the province, including ICBC, China Construction Bank and Ping An Bank; and has launched 319 financial products.