Caixin
Apr 11, 2017 05:49 PM
FINANCE

E-Commerce Giant JD.com Opens Mobile App to Fund Managers

The logo of JD Finance, the finance arm of e-commerce company JD.com, is seen on a bus in Beijing, China, on Sept.18, 2015. JD.com has added an innovative layer to one of its mobile apps through which third-party financial institutions can build and operate investment product sales platforms. Photo:IC
The logo of JD Finance, the finance arm of e-commerce company JD.com, is seen on a bus in Beijing, China, on Sept.18, 2015. JD.com has added an innovative layer to one of its mobile apps through which third-party financial institutions can build and operate investment product sales platforms. Photo:IC

(Beijing) — China’s second-largest e-commerce company JD.com has added an innovative layer to one of its mobile apps through which third-party financial institutions can build and operate investment product sales platforms.

The company’s JD Finance division announced the JD Hangjia service Monday as a way for financial institutions such as mutual fund managers to sell products to consumers without going through intermediaries including banks.

Moreover, by means of the app’s “administrator dashboard,” qualified financial institutions can operate platforms as well as access JD Finance’s consumer data and analysis.

Armed with the e-commerce giant’s “big data,” a financial institution will have the power to design sales promotions and target certain clients, according to JD Finance.

The app is already available for mobile devices equipped with the Android operating system, the company said, and will soon be available for devices with the Apple operating system.

So far, nine firms serving mutual fund investors have launched platforms on JD Hangjia, which means “expert” in English. They include Tianhong Asset Management Co. Ltd., China Southern Asset Management Co. Ltd., and Penghua Fund Management Co. Ltd.

JD Finance said it does not plan to offer its own investment products but expects to serve insurers and other financial institutions through the app in the future.

“JD Finance does not offer investment management on its own, and has no intention to compete with fund management firms for business,” said Zhou Yuhang, the director of JD Finance’s wealth management department. “Instead, we are serving financial institutions through this app with JD Finance’s data analysis and technological capacities.”

Fund management firms already sell investment products through online platforms. But because their user data and client bases are limited, they cannot always generate precise investment analysis, said Wang Deying, vice president of Bosera Asset Management Co. Ltd.

JD Finance can offer firms so-called “big data” based on years of online retail experience with millions of consumers in China.

“With big data, the portrait of a client’s risk tolerance and appetite will be more complete,” Wang said.

JD Hangjia said financial institutions using the app will be able to reach hundreds of millions of users through JD Finance. But Zhou Yuhang, the director of JD Finance’s wealth management department said there will be limits to the system’s information sharing, and that sensitive consumer information will not be disclosed.

Contact reporter Dong Tongjian (tongjiandong@caixin.com)

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