Lufax: FinTech and the Transformation of Wealth Management in China

This case examines the rise and competitive positioning of Lufax, an online marketplace headquartered in Shanghai, China, and a pioneer in the origination and trading of financial assets. The company had grown at a remarkable rate, and was awarded “Trading Platform of the Year” for 2017 by the Asian Banker Financial Markets Awards Programme. Case protagonist Gregory Gibb, Chairman & CEO of Lufax, must decide how to navigate the challenging regulatory and competitive landscape, in order to achieve Lufax’s goal of transforming and expanding the wealth management industry in China. Whether the technology giants (e.g. Baidu, Alibaba, and Tencent, often collectively known as “BAT”) would be able to develop strong capabilities in the “Fin” part of “FinTech,” and whether traditional financial institutions would become technologically sophisticated enough for their “Tech” capabilities to materialize, were among some of the key uncertainties and potential challenges that Lufax had to confront. There were also looming risks and lingering uncertainties on the political and regulatory front. The focal point of the case centers around how Gibb can strategize and position Lufax going forward, and leverage its unique “finance DNA” to try to win market share in the rapidly changing FinTech and wealth management sectors in mainland China.