Fintech platform OneConnect sees revenue jump 42.3%
OneConnect Financial Technology, a technology-as-a-service platform for financial institutions in China, saw its revenue increase 42.3 percent year over year to 3.3 billion yuan (US$510million) in 2020, thanks to its commitment to innovation and diversification.
Key drivers for the growth were operation support, cloud services platform and implementation, the company said.
Revenue from operation support, for instance, surged by 82.1 percent due to the increase in demand for AI customer service and roadside assistance.
It gross margin expanded to 37.5 percent from 32.9 percent during the reporting period while the operating loss narrowed to 1.47 billion yuan, compared with 1.7 billion in the prior year.
Retail loan volume processed by the company’s systems in 2020 dropped to 70 billion yuan from 91.2 billion in 2019, due to the continuous phasing out of low-value solutions and caution among financial institutions in response to regulatory tightening.
The amount of small business loans processed increased to 41.9 billion yuan from 39.1 billion yuan, reflecting the addition of new customers. However, the increase in SME activities was not able to offset the decline in retail activities, causing a drop in business origination services revenue, according to the firm.
Total fast claims checks carried out rose to 5.9 million from 5.0 million, benefiting from an increase in number of customers, and supporting revenue from risk management services.
Cashflow from operations also significantly improved, with cashburn per month more than halving on average, said chief financial officer of OneConnect.
OneConnect’s platform provides cloud-native technology solutions, which help financial institutions increase revenue, manage risks, improve efficiency, enhance service quality and reduce costs.