Xie Jinsheng, vice president of JD.com, at the JD Discovery conference in Beijing on Nov. 19, 2019. (Image credit: TechNode/Coco Gao)

Chinese internet retail giant JD.com announced its new financial technology service at an event in Beijing on Tuesday, as the company takes aim at Chinese financial institutions looking to digitize their operations.

Why it matters: The fintech solution is part of its broader strategy for JD.com to open its technology to partners and furthers the transformation of subsidiary JD Digits (JDD)—formerly JD Finance—from a financial company to a technology service provider.

“As we enter the second half of the fintech game, financial institutions and technology companies will develop ever more close partnerships.”

—Xie Jinsheng, vice president of JD.com

Details: The solution aims to be a one-stop-shop for Chinese financial institutions seeking to leverage technologies such as big data to digitize and optimize their operations, said Xie Jinsheng, vice president of JD.com. The service, JDD T1, offers customizable digitization tools to help optimize efficiency, lower transaction costs, and reduce risk.

  • The product combines infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), data-as-a-service (DaaS), and function-as-a-service (FaaS) to financial institutions and banks, said Xie Jinsheng, vice president of JD.com. JDD T1 is an important component of JD.com’s vision of developing a “financial technology operating system,” he added.
  • JD Digits will offer technology support to financial institutions, allowing them to leverage big data analysis tools for customer segmentation and marketing. The company said that the solution will increase monthly active users (MAUs) by 15% using predictive models and intelligent recommendation technology without additional sales and marketing spend.
  • The service will provide support for financial institutions to develop mobile apps, mini-programs, and websites.
  • Retail business sales for the company’s partner banks has a reached nearly RMB 500 billion.
  • The company has not disclosed when JDD T1 will launch.

Context: JD Digits, formerly JD Finance, rebranded itself late last year to align with plans to integrate digital technologies across sectors.

  • CEO Chen Shengqiang said (in Chinese) at an event in April 2018 that the company is transitioning into a technology service company.
  • In February, JD Digits announced a one-stop system for its asset management business, allowing financial institutions to apply technologies such as big data, artificial intelligence, and blockchain.

Nicole Jao is a reporter based in Beijing. She’s passionate about emerging trends, news, and stories of human interest within the world of technology. Connect with her on Twitter or via email: nicole.jao.iting@gmail.com.

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