M&A Is Driving Fintech Expansion in Asia

Recently, Chinese financial technology company PINTEC announced it will acquire InfraRisk, a provider of credit risk management SaaS solutions. InfraRisk, based out of Australia, links financial institutions to its platform technology, which is centered around the commercial and retail loan origination process. The Company counts Australia’s Big Four banks and Toyota Financial as customers.

This acquisition, according to PINTEC, is a means to further its international expansion ambitions as well as its focus on ramping up its “Software-as-a-Service Plus” business model. The Company has stated it will continue to explore expansion in other developed markets as well.

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“With rich experience in providing products and services for financial institutions, and a well-established reputation and brand, InfraRisk will become a strong support for PINTEC’s overseas business expansion,” said PINTEC Founder and CEO William Wei in a statement. “In the future, PINTEC and InfraRisk will jointly develop new products, and explore new markets to serve more financial institutions.”

PINTEC was keen on InfraRisk’s knowledge of and relationships with the financial industry participants in Australia.

InfraRisk Founder and CEO Nicholas Davies pointed out that the technologies from the two companies will jointly bring great benefits to banking customers.

“PINTEC has world-leading, digital lending technologies, best risk management practice[s] and mature product operation experience, which is complementary to InfraRisk’s leading credit risk management system,” Davies stated. “With the support from PINTEC, InfraRisk will leverage artificial intelligence and Big Data technologies to upgrade our products and services, and drive future growth by providing financial institutions with comprehensive FinTech solutions.”

In 2018, PINTEC raised approximately $45 million on the Nasdaq stock exchange. Related to that funding, Wei made reference to the Chinese market, which is “very active,” but without many competitors in the area of solutions for financial institutions and businesses. More financial technology and services providers should seek to understand how to integrate more seamlessly with the existing infrastructures of financial institutions.

“Our partners, who are using our technology and solutions, are more flexible and want to be able to do things to their own system requirements,” Wei said at the time.