Alibaba Lures Chinese Depositors Away From Banks

Yu’E Bao, Alibaba’s investment platform, is being used by a rising number of Chinese citizens as an alternative to a traditional bank account, the Financial Times reported on December 20.

In an interview with the Times, Li Mingyang said that he transfered nearly all of his cash from his bank account to his Yu’E Bao account.

“There’s no point in keeping money in the bank any more. This is just as reliable, more flexible and you can earn a lot more from it,” he said.

Yu’E Bao members can earn interest on their holdings, as Li explained in the interview, which can be monitored with the use of a mobile app. More than 30 million Chinese citizens have signed up to use the platform since its launch in June.

The platform is just one part of Alibaba’s multi-faceted business strategy in the Asian-Pacific region. To learn more, read Market Platform Dynamics CEO Karen Webster’s take on the eCommerce giant’s future by clicking here.

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