DiDi Finance, the fintech arm of Didi Chuxing, China’s biggest mobile transportation and local services platform, on Tuesday announced that it signed a strategic partnership with Bank of Shanghai. Under the agreement, both parties will jointly develop digital financial products and services, and create a “digital finance laboratory.”
“Bank of Shanghai hopes to integrate its financial technology and innovation capability into the diversified service scenarios on DiDi’s platform,” said Bank of Shanghai VP Hu Debin. Hu noted that the increase in online transactions during COVID-19 raised the bar for contactless financial services.
Earlier this year, DiDi was selected to join a list of companies and banks to test China’s Digital Currency Electronic Payment (DCEP) program launched by the People’s Bank of China, which is expected to facilitate contactless money transfers.
DiDi offers a variety of app-based transportation and other services for over 550 million users across China, Latin America, and Australia. Last year in January, the company established its finance arm with a range of financial services, such as car insurance, personal loans, and a crowdfunded medical insurance product.
Alan Zhuo Yue, general manager of DiDi Finance, said that Bank of Shanghai is a recognized leader in the digital banking sector: “DiDi and Bank of Shanghai look forward to beginning financial innovation in the smart mobility sector and expanding soon into a broader range of efficient and convenient financial services for our users.”