Alibaba Group Holding announced collaboration with 25 banks, financial institutions, and credit rating agencies across the globe. On Wednesday, the Chinese ecommerce company made it official. Its main objective is to allow cross border trade financing for SMEs along with new credit-reporting service. The company took this step as it looks forward to bolster its B2B (business-to-business) ecosystem across the globe by teaming up with offline industries.
Alibaba Group is also currently looking to improve its Online-to-Offline (O2O) services. It initially started as a B2B platform and now it has evolved a lot. It initially was a platform of Chinese suppliers only but now, it is a one-stop platform offering several services to its international buyers and sellers, such as logistics, business services, and business verification services.
The CEO of Alibaba Group, Daniel Zhang, said in a press conference in Hangzhou, “To Alibaba, regardless of B2B exports or imports, the ecosystem is very important. The Alibaba mission is to make it easy to do any type of business.”
The domestic partners for its latest initiative that will be taking care of the finances for all the SMEs, include MYBank (Alibaba-backed internet bank), China Merchants Bank, Bank of China, etc.
As of now, only SMEs that belong to the mainland China are allowed to take loans from this initiative. These loans can be used to further fund cross border trades in the future. The Chinese firm also announced of launching its own credit rating platform this year under domain name of credit.alibaba.com.
The president of B2B business unit at Alibaba, Sophie Wu, said, “By building up the credit profiles of Chinese SMEs based on business-related data, Alibaba.com’s credit reporting service can help overseas buyers identify trustworthy trading partners and provide Chinese suppliers access to innovative financing options.”
The company is significantly growing as the time is passing by. It is regarded as the biggest and largest tech organization in the world, which has all the power to invest in any startup or business. The only disadvantage is that it has little or no presence in the international markets, which may be hampering its progress for global domination. The firm aims to dominate the global retail space but the challenges in expansion specifically in the United States are worrying it.
China represents a significant market with many isolated businesses. Jack Ma clearly understands the potential of international borders to expand and tap into other markets.
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