Alibaba Becomes One of the Top 10 Global Banks

Rapid technological advancements and the booming financial technology (Fintech) sector have transformed how people make payments, obtain insurance, invest, and access financing. Previously, individuals needing financing had to go to a bank, but this is no longer the case. They can now obtain funding from fintech companies. Alibaba, through its Ant Financial Service Group, has successfully leveraged this opportunity.

This Alibaba-affiliated financial institution, initially an online payment operator called Alipay, has evolved into a global financial giant. According to Disruptive Finance data, Ant Financial's capitalization was US$50 billion 2.5 years ago, but it has now reached US$150 billion, placing it among the top 10 largest global banks. While this figure is still below the Bank of China's capitalization of US$180 billion, it surpasses that of Merchant Bank, Royal Bank of Canada, BNP Paribas, and Goldman Sachs.

For context, Alipay underwent rebranding to Ant Financial in 2014. In 2015, it received US$4.5 billion in funding from China Investment Corporation (CIC), CCB Trust, China Life, China Post Group, China Development Bank Capital, and Primavera Capital Group. That year, the Alibaba-affiliated financial institution's valuation reached US$45 billion, with 450 million active users.