SHENZHEN, China, Sept. 13, 2021 /PRNewswire/ -- On September 10, OneConnect Financial Technology
Co., Ltd. (NYSE: OCFT) ("OneConnect"), a leading
technology-as-a-service platform for financial institutions and
associate of Ping An Group, hosted an open day event with the
theme, "Technology Creates Value through Expertise".
During the event, OneConnect CEO and Chairman, Ye Wangchun
officially unveiled the company's five-year strategy to fuel growth
in the future. Mr. Ye highlighted that the development plan would
place a core focus on strengthening the company's customer base,
products and ecosystem.
"At OneConnect, we are committed to building a world-leading
financial services ecosystem in order to create more value for
customers and shareholders. Our new five-year strategy will help
usher in the next wave of digital financial development and build
an industry-leading financial services ecosystem. We are fully
confident in the company's development trajectory and believe that,
with the accelerated implementation of our strategic five-year
plan, OneConnect will capitalize on existing and new momentum
during this transitional phase to add value and cultivate deeper
loyalty with our customers," said Mr. Ye.
Adhering to a long-term vision to build new momentum
By 2024, the digital transformation market for China's financial service institutions is
expected to exceed RMB 400 billion
(approx. US$ 62 billion), while the
market for Southeast Asia is
projected to reach RMB 180 billion
(approx. US$ 27.9 billion). In
response to growing demand, OneConnect has engineered its
"One Body and Two Wings" five-year
plan to capture market potential by minimizing low-production
business and optimizing its structure.
The "one body" in OneConnect's strategic development plan refers
to the digital transformation of financial services as the key
driver to empower financial institutions to improve efficiency and
services while reducing cost and risk. Meanwhile, the "two wings"
refer to the establishment of government policy, as well as a
corporate user ecosystem and the expansion of overseas markets.
Empowered by technology, OneConnect seeks to help the financial
services industry truly achieve digital transformation.
Its latest five-year plan comes following its highly successful
first phase between 2015 and 2020, during which the company laid a
strong foundation in terms of customers, products and operations.
This stage was focused on growing individual products to meet the
business needs of financial institutions, in order to gain
widespread coverage, adapt to different scenarios and needs, reduce
onboarding time, and rapidly capture market share.
This year, OneConnect is tapping into extensive insights on the
digital needs of financial institutions, as well as its long-term
partnerships over the past five years, to upgrade and integrate
more than 50 individual products into four products with
"horizontal integration and full coverage across verticals." These
four products include digital retail finance, digital corporate
finance, digital insurance, and its Gamma Platform.
Four stages to create a leading financial services
ecosystem
By leveraging Ping An Group's three decades of extensive
experience in the financial industry, OneConnect is able to
accurately grasp the needs of financial institutions to provide
end-to-end services for banking, insurance, investment, and other
sectors. As a result, the company has reached a number of
milestones over the past half-decade, including the establishment
of a widespread and solid foundation of financial institutions and
government-regulated customers, the creation of a diversified range
of innovative products and solutions, and achievement of continued
business performance. OneConnect has also consistently improved its
position in the market and currently ranks fourth for revenue among
listed financial software service providers.
As the company looks forward to its second stage of growth in
2021 and beyond, it has divided its strategic development plan into
four stages: capturing the market, cultivating a deep and lasting
relationship with customers, expanding its ecosystem, and
establishing global leadership in the financial services industry.
During this stage, OneConnect will seek to accelerate conversion
and focus on customer loyalty, gross product profit and third-party
revenue, in order to rapidly and effectively improve its products,
services, and operations.
OneConnect has already grown its customer base significantly
during the first phase of its development. At the end of 2020, the
company had 594 high-quality customers and 160 premium Plus
customers, which represents a growth rate of 64% and 63%
respectively over the past three years.
At the product level, the company has continued to diversify and
innovate its product portfolio across five types of businesses,
including implementation, risk control, operational support, cloud
platforms, and operations and maintenance. The proportion of
revenue generated from business development has increased 13% from
the 39% achieved in 2018. Furthermore, revenue generated from new
products, such as its Gamma Voice Platform, has been responsible
for a third of the total revenue.
On the operational side, overall performance trends show that
OneConnect is improving its position compared to domestic
competitors. From 2018 to 2020, the company recorded a 53% compound
annual growth rate from its operating income and a 58% compound
annual growth rate from third-party revenue, whilst reducing its
net loss rate from -85% to -37%. At the same time, OneConnect has
optimized the ratio of its sales and management expenses from 31%
and 37% in 2018 to 16% and 22% in the first half of 2021. Revenue
and gross profit have maintained double-digit year-on-year growth
for multiple consecutive quarters.
OneConnect has also continued to invest in the transformation of
the technology-enabled financial services industry with continued
investment in R&D. Its ratio of R&D expenses has remained
at 30% over the past three years, which has enabled the continued
enhancement and advancement of its products and services. As of the
end of June 2021, OneConnect had
accumulated 5,075 global patent applications, including 1,199
overseas patent applications and 3,876 domestic patent
applications.
Looking ahead, OneConnect will continue to advance its
"technology and business" model with a focus on product upgrades,
cultivating relationships with its customer base and building its
ecosystem. Underpinned by the philosophy that "Technology Create
Value through Expertise", OneConnect is well-placed to become an
integral player in the development of the nation's digital
economy.
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SOURCE OneConnect