Ant Financial Harvard Case Solution & Analysis

Ant Financial Case Solution


Banks or financial service companies should deliver their commitments and promises because most of the regulators appreciate reliability. For building the healthy relationship with regulators, bank should not send a 25 page procedure manual, they must specify a paragraph and a page number so the requested information can be found with an ease.


Collegiality has been a mutual respect. Financial service sector or bank should maintain the respect in their relationship, even in the tough time conversations can take place to resolve any issue that may arise. It manage the healthy relationship between regulators.


The  bank  is responsible of opening new account for the customers and discussing all the potential problems or issues and is responsible to abide the laws and regulations with the regulators so it can build a healthy relation with regulators.

What are the challenges to address in AF's globalization? How do you think about their current approach to addressing the challenges?

Ant Financial Company has a staff of 7000 globally with 1500 of them being in risk management. Alipay is the sector of the this company and Alipay capital loss is less than 0.001% which means that it is lower than the individual likelihood to get hit by a meteorite but holding these numbers together through global development might be the company’s biggest challenge.

An area which Ant Financial was targeting was the Chinese tourist’s expenditure which was estimated at USD 215 Billion in 2015, what  Ant Financial did was to engage Alipay to open up local wallets within the native economies to allow peer-to-peer transaction. But that was quite striving because Matthew Brennan (co-founder of China Channel) stated that:

“There are a lot of regulations and if they want to enable that, they should have to have partnership with local companies but it’s most likely impossible in many countries. Tencent had local wallets in Hong Kong and South Africa. In South Africa, they are capable to do it because of Naspers, which is a main investor in Tencent. The same for the Hong Kong because it close to China but to make this service available in all other countries is challenging for them.”

The current approach of the organization was to create partnerships in with other Fintech Organizations throughout the world to legalize the change of currency which would be transferred through online means in the online wallet of Ali Pay, this strategy is sufficient until regulators enforces bars on the organization as it plays a vital role in the monetary policy of the country.

According to Ant Financial the best ways to enhance or pursue growth is through investments in developing countries such as India, Korea and Thailand, where the organization created strategic partners. This strategy is on the term with the globalization of the Ant Financial but this all can change if the regulators force a law which can hold the organizational operations. The organization should think of the alternative strategies which should be kept in place and immediately implemented if the regulators provide some laws forcing the hold of operations.

What are the general implications for the global economy? 

The globalization impact is evident, it tends to effect almost every aspect of the modern life, it would change the world economy and it would open up new opportunities for the countries all around the world. It should be notified that presumably it would act as a driving force for the development of economy. The process of globalization would allow the countries to cooperate, interact and exchange information. It would most likely makes the emergence of new and innovative technologies that would improve the people’s lives and shape the business world.

Globalization would allow the people to start their own businesses and relocate to wealthier countries. This would translate into more opportunities and higher income in life. It would compel the business to adapt different strategies based on certain ideological trends that try to balance the interest and rights of both community and individual. This change would signifies a change for the labors, business leaders and management, this can be done by accepting the participation of government in implementation and development of company’s strategies.

It would also bring re-organization at national, international and sub-national levels. More specifically, it would bring re-organization of international trade, production and financial market integration. This in turn, it would affect the social relations and capitalist economy through microeconomic and multilateralism phenomenon such as business competitiveness. The expansion of business would result in trade in financial services via cross-border entry and capital flows. In short, globalization would result in increased competition, more efficient markets, stabilized security, equality of wealth throughout the world.

What are the implications for your industry?

Globalization in the economy benefit the industry of the country by promoting the overall growth of the economy. The liberalization of foreign investment minimize the time and amount spent in procedures for getting approvals from the officials. It also increase the production of the business and lower the cost associated with the projects.

According to our industry, which in turn can be taken for the Pakistani Industry, as I am focused on that developing country; the globalization has led to more of the service industries coming into power rather than the historic primary industrial organizations. This empowerment has led to the cheaper goods in the market coming from different multinational organizations of high quality and readily being available in to the market, further the services industry is at its peak due to many new ideas coming into existence. One example of this can be taken by the Fintech Company which is Ant Financial, which progressed hard because of the historic banking institutions in place. These type of organizations promotes the volume of the export and increase the inflow of the foreign capital in the industry.

Industrial labor has also become much more efficient due to the growing competition and inflow of the foreign knowledge in the industry making the processes much more efficient.  It has increased the overall productivity of the industry which in result leads to higher wages and eliminates the industrial caused illness prevailing in the industry.

It will gives rise to the employment in the industry by creating new jobs and opportunities in the industrial sector. It will boosts the economy of the country and provide help in resolving the issues that are prevailing in the industry. It incorporates new method and technologies in the industry which will make the overall process much more efficient and will help in reducing the cost. It will also bring new opportunities in the country which eventually will help the country to grow and prosper..............


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