China’s Geely Sweden Holdings AB, a subsidiary of Zhejiang Geely Holding Group Co Ltd, and Denmark’s Copenhagen Saxo Bank A/S signed an agreement on 17th December to established a new joint venture aimed to provide financial and regulatory technology solutions to financial institutions in China.
The new company will reportedly utilize all of the cutting-edge technologies that will allow it to provide superior financial services and become competitive in China. This will include the integration of technologies such as cloud-based services, artificial intelligence, and big data.
The joint venture will mainly be providing Chinese institutions will a suite of regulatory technology and financial solutions in areas such as asset management, risk solutions, advisory, trading, and investments. Under the agreement, Geely and Saxo Bank will both have an equal 50 percent stake in the planned joint venture.
Geely Holding Group executive vice-president and chief financial officer, Li Donghui, mentioned in a statement that the company is confident in the partnership given Saxo’s experience in the global market and Geely’s extensive “local know-how.” Geely is currently a shareholder of Saxo Bank and has had a long relationship with the company, helping it leverage its strength in financial technology to tap into other markets.
Saxo Bank CEO and Danish founder, Kim Fournais, echoed Li’s sentiments and added that the establishment of the joint venture is a major milestone for the company as it will provide it with very unique commercial opportunities in the region. Mr. Fournais stated that the partnership should allow it to significantly increase its presence in the Chinese market, which is part of its long-term strategy.
Apart from working with Geely, Saxo also plans to work with government regulators and other Chinese financial institutions to strengthen its position in China. The company aims to provide a “transparent, efficient, and safe” access to its services and given Chinese companies new investment opportunities. Saxo Bank is relying on its years of experience in tailoring technologies to meet the needs of its customers.
According to China Daily, Geely plans to support Saxo Bank’s efforts into tapping the massive opportunities available in the Chinese market. The partnership comes at a very opportune time for both companies given China’s increasingly open financial markets. The country’s open up has seen an influx of foreign institutions attracted by its now preferable policies and incentives. This has, in turn, resulted in the explosion of new development platform solutions and solutions providers that are aimed at meeting the requirement of growing Chinese companies and institutions.