Problem:
Since the inception of the third-party payment system Alipay in 2004, Ant Financial had grown into a fintech company with an estimated valuation of $75 billion. By 2016, Ant Financial had effectively established an ecosystem with 451 million active uses in the third-party payment business alone. The company also successfully created a number of services in addition to Alipay: a money market fund, a digital only banking, and a credit scoring service. The case describes the history of Alipay, and the challenges and opportunities it faced in 2016.
1. Why was Ant Financial so successful? What customer problems was the company addressing? What capabilities did the company leverage to address these problems?
2. What are the critical challenges the company faces going forward in China?
3. Do you think Ant Financial can successfully leverage its China experience to pursue opportunities outside China?