Alibaba’s major Internet finance service Ant Financial announced on Wednesday that it will invest in the Postal Savings Bank of China (PSBC) to create a partnership to expand financing services in China’s countryside, according to Tech Web.
Ant Financial CEO Peng Lei told Tech Web that through the partnership with PSBC, both parties will be able to utilize their strengths to further develop rural finance and inclusive finance.
PSBC has RMB 6.8 trillion (USD 1.05 trillion) in assets and the bank pledges to service the “three rural issues”, provide service for SMEs (small and medium-sized entreprises), service communities, and complement other commercial banks.
Ant Financial has been focused on serving consumers and small enterprises. Under Ant Financial, Alipay, Yu’e Bao, Zhaocai Bao, Myxiaodai and Zhima Xinyong all utilize the internet to support financial institutions in providing financial services for enterprises.
Ant Financial plans to go public on China’s mainboard in 2016.