(Yicai) July 30 -- Chinese short-video platform Kuaishou Technology has obtained an insurance brokerage license, taking one more step in the financial industry.

Kuaishou’s wholly-owned unit Kuaigou Technology has become the controller of Everfit Broker, an insurance brokerage firm in Shanghai, The Paper reported yesterday.

Yunche Technology, another subsidiary of Kuaishou, bought microfinance company Huanju Microfinance from Chinese livestreaming platform Joyy and changed its name to Guangzhou Kuaishou Microfinance.

Short-video platforms have natural advantages when entering the financial industry. Many insurance institutions and their agents have launched marketing and sales campaigns through livestreaming and short videos. Consumer finance advertisements are very popular on short-video platforms.

Kuaishou’s rival Douyin bought an insurance brokerage firm in Beijing in June 2018. Moreover, it acquired a microfinance company in Shenzhen in 2021 and raised its capital to CNY19 billion (USD2.9 billion) from CNY9 billion (USD1.2 billion) last year.

Offline channels of traditional insurance companies are still the preferred choice of insurance buyers, according to a report released by Tsinghua University in April. However, the ratio of online buyers significantly increased this year.

Editor: Futura Costaglione