Alibaba started offering a cloud computing service known as Ju Baopen for banks and securities firms, as China’s largest e-commerce company ventures into financial-related services

Alibaba Starts Cloud Service for Chinese Financial Institutions

Alibaba Group Holding Ltd. started offering a cloud computing service known as Ju Baopen for banks and securities firms, as China’s largest e-commerce company ventures into financial-related services. At least eight banks including Xiamen Bank Co., China Bohai Bank Co. and Tianjin Rural Commercial Bank Co. are able to provide online payment services by using Alibaba’s cloud computing service, according to an e-mailed statement from the Hangzhou-based company today. The banks’ online platforms will also be connected to Alipay, the company’s third-party transaction system.Billionaire Jack Ma, Alibaba’s founder, is driving an expansion into financial services by the company that runs an online marketplace for goods from frozen mackerel to acupuncture lasers to Boeing Co. 737s. Alibaba is considering moving toward a listing in the U.S. and has been valued at $120 billion according to the average estimate of six analysts.

Alibaba is trying to build information technology systems for financial institutions as it promotes Alipay, which handled at least 35 billion yuan($5.7 billion) of transactions on China’s Singles’ Day sales promotion. China’s more than 2,000 regional banks can start providing online payment services at lower costs with Alibaba’s Ju Baopen, it said in the statement.

“While most smaller scale banks already have online payment systems, a lot are not connected with Alipay,” Yuan Lin, an analyst at Bank of China International Ltd. in Beijing said by phone. “By providing this service, it could benefit Alipay.”

Ju Baopen, which means treasure gathering basin in Chinese, may appeal to smaller banks as it could help them become more efficient and minimize purchases from companies such as International Business Machines Corp. (IBM), Oracle Corp. (ORCL) and EMC Corp. (EMC), Alibaba said in a separate statement.

To contact the reporter on this story: Lulu Yilun Chen in Hong Kong at ychen447@bloomberg.net

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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