Financial Technology (Fintech) could help build an inclusive financial system which allows any group in society to enjoy more convenient financial services by lowering the threshold and costs of obtaining financing, said Wang Zhongmin, a former vice chairman of the National Council for the Social Society Fund, recently at the Hangzhou Bay Forum.
Fintech has advantages in facilitating operational efficiency, advancing customer experience and boosting products and services updating, and innovations, which are in line with the ultimate goal of traditional financial institutions, said Ao Yifan, a vice president of the Bank of Hangzhou.
Traditional banks usually focus their services on the top 20 percent of customers including large and medium-sized enterprises as well as high-net-worth individuals. While inclusive financing propped up by Fintech could offer services for those whose credit status is hard to measure, like low-income individuals and small enterprises, said Liu Yang, dean of the Blockchain and Industrial Finance Research Institute at the China Electronic Commerce Association. “Leveraged by tremendous customer data, Chinese Fintech companies have an edge over their Western counterparts in innovation applications.”
Urs Bolt, the juror for the Professional Wealth Management (PWM) Wealth Tech Awards at the Financial Times, told the China Fortune Media Group that China has a large market scale while Switzerland has technologies; the two countries could work together on Fintech innovations. China could improve its regulatory technologies, and blockchain technologies could monitor on potential financial risks in real time.
He said that there could be little chance that Fintech companies would take over traditional banks as they are holding customers’ accounts and bearing the financial and credit risks during the transactions.
“It is notable that banks are not leading technology innovations in China. However, Fintech companies are influencing banks to become more tech-oriented.” Urs said banks are supposed to cooperate with tech companies. They need tech applications to exchange data in real time.
He said China’s traditional financial systems need further improvement in real-time personal data monitoring and expertise in KYC (Know your client). He added that China could decentralize its financial regulations by allowing private companies to use regulatory and supervision technologies to test the ground in integrating banks’ customer data.
Fintech has advantages in facilitating operational efficiency, advancing customer experience and boosting products and services updating, and innovations, which are in line with the ultimate goal of traditional financial institutions, said Ao Yifan, a vice president of the Bank of Hangzhou.
Traditional banks usually focus their services on the top 20 percent of customers including large and medium-sized enterprises as well as high-net-worth individuals. While inclusive financing propped up by Fintech could offer services for those whose credit status is hard to measure, like low-income individuals and small enterprises, said Liu Yang, dean of the Blockchain and Industrial Finance Research Institute at the China Electronic Commerce Association. “Leveraged by tremendous customer data, Chinese Fintech companies have an edge over their Western counterparts in innovation applications.”
Urs Bolt, the juror for the Professional Wealth Management (PWM) Wealth Tech Awards at the Financial Times, told the China Fortune Media Group that China has a large market scale while Switzerland has technologies; the two countries could work together on Fintech innovations. China could improve its regulatory technologies, and blockchain technologies could monitor on potential financial risks in real time.
He said that there could be little chance that Fintech companies would take over traditional banks as they are holding customers’ accounts and bearing the financial and credit risks during the transactions.
“It is notable that banks are not leading technology innovations in China. However, Fintech companies are influencing banks to become more tech-oriented.” Urs said banks are supposed to cooperate with tech companies. They need tech applications to exchange data in real time.
He said China’s traditional financial systems need further improvement in real-time personal data monitoring and expertise in KYC (Know your client). He added that China could decentralize its financial regulations by allowing private companies to use regulatory and supervision technologies to test the ground in integrating banks’ customer data.
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