With a net worth around $18.5 billion US Lu.com is a financial marketplace that takes place entirely online. Based in China and established in 2011, Lu.com made the list of companies with over a billion dollars net worth (known as Unicorn Companies) back in 2014. Any company that can do this within three years of founding is definitely doing something right…and we wanted to know what.
With only a single product to begin with, Lu.com quickly climbed the ranks to become the biggest and best P2P lender in the Chinese market. Lu.com provides an online platform where investors and borrowers can find their perfect partner, sparking new businesses, engaging old businesses and allowing the economic market to flourish throughout the country. A sister to the Ping An Insurance Group, Lufax have made major innovations in the Chinese financial sector… but they are making moves to expand.
Since they were founded, Lu.com have expanded their operations to become a much larger platform, seeking to eventually expand into further territories. They expanded into insurance companies and financial license holders – meaning that they work closely with those who regularly handle large amounts of cash. They frequently work for hedge fund financiers and make the majority of their profit by charging a small percentage of commission on each of the investments made on their platform. They currently lead the way as the most influential Chinese P2P lending company and their business model is being used to guide other companies around the world.
Lufax has done astonishingly well due to the finance boom in online expenditure. This boom has slowed but hasn’t stopped yet, and we can expect the company will find other ways to adapt as the market changes. With such major funders as China Fintech, Ping An Insurance, CDH Investments and the Bank of China; Lufax have a financial backing that is almost scary. Let’s take a look at what their services actually are to find out where all those loans come from.
List of Services
Lu.com is an online financial portal, so much of their produce is monetary. Some of their services are:
- Providing an online platform for both borrowers and lenders.
- Develop algorithms that best match potential clients to each other.
- Loan facilitation and advise through their online service
- An online network of entrepreneurs to assist.
- A community forum that helps resolve any other issues.
- A fully staffed service with help and support available at all times.
Obviously Lu.com have made a significant impact on the world’s perception of the Chinese economy. Their business stands as testimony to how a good idea can be worth billions – when it is executed at the right time. The rise of online transaction is what truly made this company – and given our current climate this doesn’t seem to be an idea whose value will wear out anytime soon. All that remains to be seen is how they intend to adapt as they spread, because globalization is just around the corner.
If you need any more information on Lufax then you can visit their web page, here.