remain 新年看中国FinTech——过去、现在和未来前景(4)

Other arguments range from unequal treatment of consumer rights (pure FinTech players reportedly do not strictly abide by consumer protection rules on areas like data privacy) or fair competition (many FinTech players heavily subsidize their products). Different theories aside, it can be said that it is China’s generally friendly ecosystem that has made it a global leader in FinTech. Whether or not it was by accident or by design remains highly debatable.

Fintech China: Cloudy Prospects?

As the Chinese government shifts its policy priority to focus more on financial stability, a flurry of regulatory and administrative measures have been rolled out to contain risks, and industry players are feeling the pressure. While the government has provided some general guidance, details remain sketchy. Will the government continue to encourage financial innovation and FinTech? Who has the primary regulatory authority? What regulations are coming? How are they going to be applied? The market needs and is anxiously awaiting clarity.

It is generally agreed that there are three primary drivers behind innovation in FinTech: the market demand for affordable financial services, technological progress and a robust policy and regulatory regime. China and the developing world tend to have strong unmet or under-met demand for basic financial services, given financial repression in these markets. Technological progress in smartphones serves as an enabler, making it possible for services to be delivered digitally to large numbers of customers anytime, anywhere. In this area, China again is a leader, with global internet giants like Tencent and Alibaba.