Techs crowd into online financial services space
百度進軍金融理財 網民瘋搶百發最后機會

Internet giant Baidu officially rolls out Baifa, its online wealth management product today. It follows other technology companies that have jumped onto the financial services bandwagon.

The name Baifa means great fortune for everyone. And thats what China’s biggest online search company wants to bring with its wealth management vehicle.

The product promises better returns than tradtional bank deposits and other money market funds.

Baidu joining tech giants such as Alibaba’s Alipay that have also started to offer financial products. This comes at a time when China is reforming its financial services industry so there's more competition and more private capital.

Banks and other financial institutions in China will need to get used to sharing their territory with these tech giants.

The internet companies are trying to diversify revenue sources away from just adverstising, they are developing their own financial products with fund companies.

And this is just a start.

Consumers have signed up en masse. Alipay's Yu’erbao product attracted 16 million users.

Its popularity points at China’s demand for more financial products. Analysts say going forward, these companies are likely to branch into offerings such as small loans and insurance.