Everyone knows fintech is a billion-dollar industry but what you might not know, is there are no signs of this slowing! In a recent business blueprint report by Channel News Asia, LU Global’s CEO Kit Wong, together with Nicole Bodack, AAPAC Wealth and Asset Management Lead at Accenture talked about how the tiny island-state is creating the right environment and regulations, to allow the sector to grow further:
Kit shares that the operating environment in Singapore is positive with a constant stream of new ideas. He also credited the government who is supportive of technology and FinTech. It’s this combination that Kit says makes Singapore a good place for LU Global to base ourselves while still offering our services on a full digital scale.
Nicole agreed. She cited a ‘massive increase’ in investments in an annual FinTech report Accenture produces each year leading up to the Singapore FinTech festival. In 2019, the report showed that from January to September 29 investments were 70% up compared to the previous year. This equates to a total of 735 million US dollars in investments in Singapore. With only 9 months of the year covered this is already more than the entire 2018, which stood at 642 million.
Channel News Asia recognised that four out of the top eleven FinTech companies in the Annual FinTech 100 report are Chinese companies. One of which, is Lufax, one of the top fintech unicorns with their latest round of valuation standing at $39.4billion (as of March 2019). LU Global serves as Lufax’s international arm, incorporated here in Singapore in January 2017. It is also a member of China’s highly successful Ping An Group, who is the #1 Insurance company globally and #7 largest company under Forbes 2019 Global 2000 list.
LU Global is a multi-award winning investment app that aims to democratise wealth management by making highly sought-after products more accessible through smaller minimum investment amounts and shorter commitment tenor durations. Using facial recognition, 2-factor authentication and OCR technology, investors are assured of secured protocols while using the app.
Kit said, “Lufax is one of the first FinTech investments that the Ping An Group made, [over] six years ago… [LU Global] learns from Lufax. We look at the technology that they [and Ping An Group] have and we take elements to then build the LU Global platform”.
Operating in one of the fastest growing verticals of FinTech, Channel News Asia shared that LU Global is part of the digital disruption facing traditional wealth management practices. But Joanna Tang, Head of BD, Partnerships and Marketing prefers to refer to themselves as ‘disruptive collaborators.’ “[We are disruptors] because most wealth management companies, need to onboard customers through offline processes, while we allow customers to register, fulfil account opening requirements, manage their portfolio and subscribe to investment products on our mobile app. At the same time, we’re also collaborating with financial institutions. We bring in the agility at a scale, and the banks have their own strengths in terms of a customer base, expertise in the market, and licenses”.
This is the reason why the fintech sector is set to continue its growth trajectory. As more and more financial institutions and fintech companies like LU Global collaborate, together they can continue to accelerate and transform the wealth management industry in this region.