With the impact of financial technology, the change in consumer behavioral habits and the regulatory strictness, the digital transformation of banks has become an inevitable trend.
Until May 9th 2019, Hong Kong Monetary Authority has already issued 8 virtual banking licenses. Several giants in China are on the list.
Global insurance technology financing is expected to reach $6.16 billion in 2019. In China, insurance technology is also on the rise.
Consumer finance outlook is optimistic, however, in the short term, the country's policy orientation is to reshuffle in this. According to the report released by the Ministry of Commerce. In 2018, China's consumer finance market size (excluding mortgage loans) was 8.45 trillion yuan and the market penetration rate was 22.36%. It is estimated that by 2020, China's consumer finance market size will reach 12 trillion yuan, the penetration rate will reach 25.95% by then. Judging from the penetration rate, China's consumer finance is still in the very early stage of development, there is still room for growth.
With the tightening of regulation, the online loan platform is facing a transformation.
Southeast Asia has become the first stop for China FinTech’s “going-out”. Countries like Indonesia, Malaysia, Thailand, Vietnam, and Singapore have more and more tight relationships with Chinese finance technology. After Southeast Asia, the Indian market has been increasingly valued by China FinTech companies because of its huge market spending power, population technology and growth rate, younger demographic characteristics and increasing mobile phone usage. Interpretation of financial market environment, technological development, social environment and access mechanisms in South-East Asia, India and Africa. Discussion of potential cooperation opportunities in technology, capital, business models, etc.
According to the China Payment Clearing Development Report (2019), tourism, study abroad, and e-commerce drive cross-border consumption and third-party cross-border payments into the Red Sea. By the end of 2018, more than 23 payment institutions had obtained pilot licenses for cross-border e-commerce foreign exchange payment business. International cooperation is becoming more frequent, take Ant Financial as an example, its layout in the field of payment in Southeast Asia has Emtek, TouchnGo in Malaysia, GCash in the Philippines, Ascend in Thailand, Kakaopay in South Korea, Paytm in India and Easypaisa in Pakistan. BCash, Bangladesh. At the same time, payment security is also being valued. The cooperative opportunities for cross-border payment and E-Commercre, the newest technology.
In July 2016, the CBRC issued the Guidance on Supervision of China’s Banking Information Technology “13th Five-Year Plan’ Development Planning (see draft). It requires that by the end of the 13th Five-Year Plan (i.e. 2020), the important information systems for the banking industry which facing the Internet landscape must be all migrated to the cloud computing platform, and the proportion of other systems migration must be no less than 60%. In addition to cloud services, the Internet of Things (IoT), big data, artificial intelligence and blockchain are also reshaping the trajectory of finance and the customer experience.
