CHINAS LEAD IN GLOBAL FINTECH Gregory Gibb Co-Chairman and CEO, - - PowerPoint PPT Presentation

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CHINA’S LEAD IN GLOBAL FINTECH

Gregory Gibb Co-Chairman and CEO, Lufax

June 6, 2017

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Lufax Overview

Backed by Ping An

Six years since establishment 30mm+ registered users 7.6mm+ active investors 3.7mm+ cumulative borrowers

Client assets: USD65bn+ Largest Wealth-tech platform in China Largest P2P platform globally

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When the steam engine was first invented… …no one would have imagined the railroad system that followed… …and the high speed trains of today

FinTech: It is Just Beginning The Drivers: Mobile + Data + Computing + Open Platforms

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The “Alignment of the Stars” for Massive FinTech Opportunities in China

Technology meets demographics Inadequate supply Huge demand

Connectivity First world tech infrastructure Accelerating economic development Young, urbanizing, saving middle class Corporate focused State owned Decentralized management Consumption Securitization Investing Better resource allocation Liquidity Borrowing

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Lufax is Addressing Huge Demand from Investors and Borrowers

Investors

• Tier 1 cities: 2/3

− Beijing, Shanghai, Guangzhou, Shenzhen

• Tier 2, 3 & 4 cities: 1/3

Borrowers

• Tier 1 cities：1/5

− Beijing, Shanghai, Guangzhou, Shenzhen

• Tier 2, 3 & 4 cities: 4/5

Xinjiang Xizang Qinghai Inner Mongolia Heilongjiang Jilin Liaoning Beijing Beijing Tianjin Tianjin Dalian Liaoyang Changchun Qiqihaer Hebei Ningxia Gansu Shaanxi Shanxi Xian Shandong Henan Hubei Yunnan Sichuan Hunan Jiangsu Shanghai Shanghai Zhejiang Jiangxi Fujian Guizhou Guangxi Hainan Guangdong Anhui Chengdu Chongqing Chongqing Kunming

Qujing

Guiyang Changsha Nanning Wuhan Foshan

Jiangmen

Zhongshan

Dongguan

Huizhou

Dongguan Xiamen Quanzhou

Putian

Fuzhou Wenzhou Taizhou Ningbo Hangzhou

Jinhua

Hefei Zhengzhou Qingdao Jinan Yantai Shijiazhuang

Binzhou Zibo

Dezhou Weifang

Rizhao Lianyungang Linyi Xuzhou Xuzhou Huaian Changzhou

Changzhou Wuxi

Nanping Huzhou Longyan Zhangzhou Quanzhou Sanming

Jiaxing

Nanjing

Affluent regions Developing regions

2016 Shanghai GDP per capita: RMB111,000 2016 Chengdu GDP per capita: RMB75,000

Suzhou

Investors Borrowers

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Inadequate Supply Meets Huge Unmet Needs

TRADITIONAL

FINANCIAL INSTITUTIONS Underserved demand from

rapidly-growing middle class

Poor customer service Time-consuming at branches Limited products High cost of borrowing Lack of credit infrastructure

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Technology Enables Lu.com to Provide Superior Customer Experience 01 Add a bank

account

02 Facial

recognition

03 Credit

approval

04 Receive

loan

Low requirements Fast process Easy repayment

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Credit approval within 3 minutes, 24x7, 100% online

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Using Technology and Big Data to Manage Credit Risk

Repayment capability Repayment willingness Identity verification

Facial recognition

Accuracy as high as 99.85%

Bank card linking 19 partner banks

(incl. four state-owned banks)

PBOC record PA Group Credit gas station Micro facial expression Anti-fraud inquiry LBS 880 mn people 125 authoritative data institutions First one in the industry to use

this technology Fraud detection as high as over 80%

(Industry average: 50%)

100% coverage nationwide

Superior Portfolio Quality by Vintage

1 2 3 4 5 6 7 2013 2014 2015 2016(1H)

(First 6 months on book)

Note: gross claim data for unsecured personal loans

300 mn+ customer data