Are there great prospects for financial technology enterprises in China?

Financial technology can effectively solve traditional financial problems.

Compared with many developed countries, China's financial system has some problems, such as weak foundation and late start. The specific questions are as follows:

From the role of financial technology, the development of financial technology industry can help the financial industry to provide better services for small and medium-sized enterprises, because it can overcome the problems of customer acquisition and risk control with digital technology. In addition, customers' activities on the platform include activities, socializing, shopping and payment. Will leave a digital footprint. The platform can use the big data accumulated by digital footprint to evaluate credit risk, so as to judge the default probability of borrowers.

Financial technology products revolve around the traditional financial layout

By March 2023, China's financial technology products mainly include client software, security chip, security carrier, embedded application software, bank card automatic teller machine (ATM) terminal, payment point-of-sale (POS) terminal, trusted execution environment (TEE) of mobile terminal, trusted application program (TA), barcode payment acceptance terminal (including code display equipment and code scanning equipment), voiceprint recognition system and cloud computing platform.

Banking industry accelerates the application of financial technology industry

Because financial technology can bring many benefits to traditional financial institutions, all major financial institutions are at the stage of accelerating the layout of financial technology. Judging from the layout of traditional financial institutions in the financial technology industry, the digitalization process of the banking industry has accelerated. According to the data of China Banking Regulatory Commission, in 2022, the total investment in science and technology of the six major banks exceeded 1000 billion, and the total investment increased year by year. In addition, the asset management industry and the insurance industry are also accelerating the pace of financial technology industry layout. According to the comprehensive scores of the enterprises surveyed in the 20021Chief Insight Report of Financial Technology Enterprises in China, the average score of the banking industry in terms of the application degree of financial technology and the progress of digital transformation is the highest, followed by the asset management and insurance industries.

Note: ① The scoring interval is1-5; ② Other sub-sectors include securities, funds, wealth management and insurance asset management.

New format of financial technology

The birth of a new model under the development of financial technology industry is giving birth to a brand-new format. For consumers, more payment options and financial products can be obtained. For the industry, the traditional financial model has entered a new format development:

For more research and analysis of this industry, please refer to the Analysis Report on Market Foresight and Investment Strategic Planning of China Financial Technology Industry by Forward-looking Industry Research Institute.