China conglomerate eyes fintech business in Phl

The Freeman Financial Group, a mammoth Sino-Hong Kong conglomerate, is setting its sights on the Philippines for the expansion of its financial technology arm, Mesonfintech Holdings Co. Ltd., (Mesonfintech), a company listed on the Shenzhen Stock Exchange.

In an interview with The STAR, Freeman Financial Group chairman Rich Zhang, who arrived in Manila last week, said the Philippines is an excellent place for expansion as result of President Duterte’s pivot to China, the improved Sino-Philippine relationship and the national policy of One Belt One Road.

Zhang is unfazed by competition in the country, considering that there are already quite a number of fintech companies in the Philippines.

“There are even more fintech companies in China and we still excelled. Competition brings innovations. We believe internet-based financial services is inevitable in the very near future,” Zhang said.

The Philippines, he said, presents huge business opportunities for Chinese companies because of the growing economy, the growing affluence of the middle class population and the tremendous potential for growth in the fintech sector.

Fintech companies are those that use technology – often in the form of online platforms or mobile applications – to enable alternative delivery of financial products or services.

“The Philippine mobile electronic payment has great potential. Seventy percent of Filipino population don’t have debit, while only 10 percent population have credit card. Cash on delivery is the preferred method of payment by e-commerce providers in the Philippines. With the development of e-commerce and digital development in the Philippines, the e-commerce payment market also covers two types of payment products, payment gateway and e-wallet,” Mesonfintech said in a report on the Philippine’s fintech landscape.

Zhang flew in last week from Hong Kong to meet with Bangko Sentral ng Pilipinas Governor Nestor Espenilla Jr., House of Representatives Speaker Pantaleon Alvarez and Philippine Stock Exchange president and chief executive officer Ramon Monzon to thoroughly understand the needs from the government in order to achieve not only the financial return from the investment but also the greater social benefit of the people in the Philippines.

Mesonfintech’s business covers innovative financial services such as third-party payment, credit reporting, inclusive finance, supply chain and asset management. It is also actively involved in traditional banking, trust, securities and insurance, among others.

At present, the company is invested in companies in Shenzhen, Guangzhou, Beijing, Shanghai and Hong Kong.

Its payment business, the Guangzhou Helibao Payment Technology Co. in particular, wants to expand in the Philippines. In China, it holds one of the 23 nationwide full license in third party payment business issued by the People’s Bank of China and the cross-border payment permission issued by the State Administration of Foreign Exchange.