Fan Wenzhong: the future of financial technology and the opportunity of Beijing, the capital.

On August 5th, 202 1 Shell Finance Summer Online Summit "Digital Economy: The Road to the Future" kicked off. Fan Wenzhong, Party Secretary and Chairman of Beijing Financial Control Group, attended the forum and gave a keynote speech entitled "The Future of Financial Technology and the Opportunity of Beijing". The following is the full text of the speech:

In today's world, a new round of information technology revolution is gestating and rising, which has a profound impact on the global economic and political development pattern. All walks of life are experiencing brand-new changes, and financial technology is changing with each passing day, which has ignited a new fire of global financial competition.

At present, we are in the era of financial transformation. In the past, the asset size, number of branches and business market share of financial institutions are no longer the guarantee factors for success. The insight into the future trend and the ability to grasp this trend are the basis for the survival and development of enterprises. In fact, there is no difference between the core competitiveness of financial institutions and Internet companies and manufacturing enterprises. They all need to have the ability to gain customers beyond their competitors, have a deeper understanding of customers and provide customers with the products and services they need in a timely and comprehensive manner. Generally speaking, the business logic of selling cabbage and selling wealth management is essentially the same, except that the latter needs a financial license.

For a country or region, the improvement of financial technology infrastructure will be the core competitiveness in the future. Just as the construction capacity of high-speed rail and expressway has promoted the miraculous growth of China's reform and opening up for more than 40 years. At present, data is the core economic resource, and the platform for collecting, processing and applying data has become the infrastructure. The perfection of these financial technology infrastructures will determine the core competitiveness of countries and regions.

If China wants to build the financial technology infrastructure to adapt to the future society, it must answer these basic questions: who will plan, who will build, who will operate and who will apply.

Theoretically, infrastructure planning needs to be forward-looking, comprehensive, fair and authoritative. All social infrastructure should be "top-level", and financial technology infrastructure is no exception, which needs unified planning and overall design. The government has the most comprehensive social planning information, so it should establish a "planning bureau" to adapt to the development of digital economy, make a comprehensive plan for regional and national infrastructure, balance the interests of all sectors of society, and formulate a fair and just plan for the allocation and use of data resources, so that the financial infrastructure can have a correct orientation from the beginning of planning.

It is impossible for the government to do everything in infrastructure construction. Just like building bridges and roads, it is impossible for the state to produce cement and steel and organize construction teams. In order to clarify the responsibility boundary between the government and the market and effectively promote the construction of financial technology infrastructure, professional and market-oriented institutions must actively participate. The process of construction should be open-minded, "there is specialization in the industry", and resources and technologies from all sides should be gathered. At the policy level, the government formulates construction standards and usage norms, and is the "supervisor" and "receiver" of the project; In implementation, we should make full use of the professional experience and talents of various market institutions and scientific and technological enterprises to build a "road" and a "bridge" in the financial field quickly and well.

Two thousand years ago, Guan Zi of the State of Qi hit the nail on the head in "On Waste", saying that "people who are cheap can be punished, while respect is useless". It means that really important daily necessities, such as grain and silk, must be cheap, while some flashy and useless luxuries, such as pearls and jade, can be expensive, otherwise there will be big problems in society. In the same way, data and information have become the core economic resources of society. To reduce the economic operation cost of the whole society, we must ensure low cost. Social infrastructure cannot be privately owned by individual enterprises, nor should it be aimed at pursuing the profit of individual platforms and the growth of shareholders' income. If the platform enterprises are allowed to monopolize the data price, it will lead to the decrease of the overall social and economic efficiency and the decline of the overall social welfare. As early as the Spring and Autumn Period, Guan Zhong had advocated that the government should establish a franchise organization such as Guanshanhai to directly manage special industries such as salt and iron. Similarly, financial technology infrastructure, as a platform for managing social core economic resources, has both economic and social attributes, and should be managed by institutions with credibility and public welfare, or operated by "government+market" to reduce the social cost of data and information and eliminate the "data black box".

Throughout history, the scientific and technological revolution has often played a role in helping the poor. After the agricultural revolution, the mental workers who were in a weak position surpassed the manual workers who hunted and preyed; After the industrial revolution, white-collar workers with core scientific and technological skills have surpassed blue-collar workers with traditional manual skills; After the information revolution, small and medium-sized enterprises, the general public and the disadvantaged groups in financial services will be the main beneficiaries of financial technology innovation and financial technology infrastructure development. This is like a city's public transportation, water, electricity and gas facilities, which are planned by the government, built by commercial companies and operated by public welfare enterprises, and finally enjoyed by the public.

As a national science and technology innovation center and a national financial management center, Beijing has many unique advantages in developing digital economy.

The first advantage is financial strength. As the national financial management center, Beijing is the location of national financial management departments, large financial institutions, important financial infrastructure and international financial organizations. According to relevant statistics, Beijing has more than 170 trillion financial assets, more than half of the national financial assets, and there are more than 900 licensed financial legal person institutions, ranking first in the country. The second advantage is superior technology. As an international scientific and technological innovation center, Beijing is one of the cities with the most concentrated scientific and technological innovation resources in China and even in the world, ranking first in the global scientific research city for three consecutive years; City-wide research and development. D The intensity of capital investment remained at around 6%, surpassing internationally renowned innovative cities such as new york and Berlin; The accumulated national science and technology awards account for about 30% of the country. The third advantage is that there are many talents. There are scientific research institutes and educational institutions in Beijing, with 50% academicians and nearly 1 10,000 teachers and students. Elite talents span all walks of life and undertake a large number of major and key national scientific research projects and industrialization projects. The fourth advantage is a good foundation. In recent years, driven by the big data action plan and the policy system of "1 3" to promote the innovation and development of digital economy, Beijing has completed the convergence of government affairs data, continuously strengthened its service capacity, and frequently appeared innovative application highlights.

Based on the above advantages, in recent years, based on its own resource endowment, Beijing has adhered to international first-class standards, accelerated the development of digital economy, and gradually become an innovation leader and industrial pioneer in the process of digital development in China. According to statistics, in 2020, the total digital economy in Beijing will exceed 1.44 trillion yuan, accounting for more than 40% of GDP. At the 202 1 Global Digital Economy Conference, which opened on August 2, Beijing also released the "blueprint" for the development of the world's first digital economy benchmark city, clearly proposing to actively build a global digital economy benchmark city.

In order to achieve this goal, we need to aim at the world's cutting-edge technology and the strategic needs of future development, so that the innovation vitality of digital technology can be fully released, the potential of data resource elements can be fully stimulated, the governance of digitally empowered megacities can be fully demonstrated, and the demonstration radiation capacity of data-driven cities can be effectively improved. Among them, we believe that it is very critical to promote the market reform of data elements.

Many people think that without data trading, we still use data every day, and the data still has use value. Why must we promote data flow communication and transaction and build a data element market? I want to tell a short story to answer this question first. In the mid-1990s, I worked in the Ministry of Finance, and my dormitory was in Gongzhufen. At that time, there was no real estate market in China, and houses for enterprises and civil servants were allocated. The monthly rent is very cheap, but there is no property right. At that time, the main assets of urban families in China were basically savings deposits, generally only tens of thousands to hundreds of thousands of yuan. After I went to study in the United States, I saw that the houses of Yale professors were all hundreds of thousands of dollars, and I thought that such an expensive house could not be bought in my life.

However, in 1998, China started the real estate reform, the property rights of houses were clear, the real estate market developed, and housing resources became assets. Coupled with the intervention of financial instruments, everyone can use real estate as credit collateral for consumption and tourism, which has completely changed the wealth level and asset concept of Chinese people. Now there is an apartment in Beijing's Third Ring Road that can be worth millions or even tens of millions. Looking back at the house of a professor at Yale University in the United States, it is very cheap.

This change in value mining is unimaginable and far-reaching. Through the reform of core elements, the assets and wealth of China families suddenly jumped to the forefront of the world, subverting the whole lifestyle of middle-class families. Think about it carefully, this great change is not the result of five plus two, white plus black, but the great energy released through the reform of the economic factor market. The principle is simple, that is, through confirmation and transaction, turning a housing resource with only use value but no wealth value into a wealth asset that families can distribute and realize, and then providing financial products such as housing mortgage loans through financial innovation, and turning this asset into productive capital that can be used for business operation and life investment. It is this factor market reform that has created great impetus for China's economic growth.

Similarly, the current data, as a core resource, has universal use value, but the asset attributes have not been fully reflected. Only when confirmation, circulation and transaction are realized will social resources be transformed into quantifiable digital assets, and then through further financial innovation, they will evolve into productive digital capital and truly release their intrinsic value. We believe that the continuous evolution from original digital resources to digital assets to digital capital is the core goal of the development of digital economy, and will also provide a powerful source of capital for China's economic growth in the future. This is the real supply-side reform.

Since its establishment on 20 18, Beijing Jinkong Group has closely focused on the construction of the "four centers" of the capital, thoroughly implemented the major decision-making arrangements of the municipal party committee and government, kept in mind the initial financial intention and the mission of state-owned enterprises, adhered to the financial values of "serving people's lives, serving the development of the capital and serving the national strategy", and devoted itself to building a leading domestic and world-class financial investment holding platform and a technology-driven and future-oriented smart financial service system. With financial technology as the core driving force, we will strive to achieve the national innovation leadership of inclusive finance and technology and finance, enhance the competitiveness of the capital's financial industry, and help Beijing build "two regions".

First, based on the equity management of licensed financial institutions, we will quickly build a trillion-level state-owned financial capital management and operation platform. Focusing on optimizing the layout of municipal state-owned financial resources, we will adhere to the main business of equity management of financial institutions and vigorously expand license resources. It has successively become the largest shareholder of Beijing Rural Commercial Bank and CITIC Jiantou Securities. At the end of 2020, JD.COM, Xiaomi and other large Internet companies in Beijing initiated the establishment of the second national personal credit reporting agency-Park Road Zheng Xin Company, which became a new benchmark for the development of the credit reporting industry. Established Beijing Asset Management Company, and obtained the first batch of pilot qualifications for non-performing loans transfer and personal non-performing loans of single-family legal persons in China. Actively promote the development of Beijing Financing Guarantee Fund Investment Group, co-ordinate Beijing's policy guarantee resources, and strengthen inclusive finance's services. Through the equity management of banks, securities, futures and other financial institutions, we will actively build a municipal state-owned financial capital management platform.

The second is to take the investment fund system as the starting point, serve the construction of "four centers" and build the capital financial stability development fund system. Focusing on the two major themes of "stability" and "development", we will highlight the strategic coordination among the central region, urban areas and at home and abroad, carry out diversified investment strategic layout, and serve the high-quality development of the capital economy. First of all, we will help Beijing to build the "two zones", carry out the national pilot of RMB cross-border use innovation under the support and guidance of the People's Bank of China and the State Administration of Foreign Exchange, set up an international RMB investment and loan fund, innovate RMB overseas direct investment and RMB overseas loan business, focus on supporting foreign cooperation and transformation and upgrading of capital enterprises, and provide financial support for building a new pattern of domestic and international dual-cycle development. At the same time, strengthen regional enterprise cooperation, set up Beijing Jincai Fund Management Co., Ltd., set up Beijing Financial Technology Infrastructure Industry Fund, actively promote the work of cultural development fund, and promote the construction of the "four" centers in the capital.

The third is to build a technology-driven and future-oriented multi-level intelligent financial service system with financial technology as the brain. In this regard, we have established a two-tier architecture.

At the basic level of financial technology, we will use big data, cloud computing, artificial intelligence, blockchain and other financial technologies to build a "four Liang Tian" financial technology infrastructure covering big data, credit investigation, payment and digital asset transactions. The first big data company in inclusive finance was established in China to undertake the "unified interface" function of the city's government data export to the financial field, and realize the unified access and exit, institutionalized management and innovative social application of financial big data. Expand the application of financial big data resources, establish a comprehensive, dynamic and multidimensional financial information database for individuals, families and enterprises, and improve the construction of financial technology infrastructure in the capital. Established Jingyun Enterprise Credit Information Platform and Park Road Credit Information Company, becoming the first institution in China with both enterprise and individual credit information licenses, creating a credit information platform covering the whole society and promoting the construction of Beijing as a "credit capital". Explore the construction of a convenient payment platform with Beijing characteristics, enhance the public service experience, and strive to create a "super entrance" for smart cities. Beijing International Big Data Trading Co., Ltd. was founded by JD.COM, Chipscreen Research Institute and scientific and technological enterprises, aiming at cultivating the data trading market, releasing the value of data elements, and building a leading domestic data trading infrastructure and an important international data cross-border trading hub.

In the application layer of inclusive finance, around the characteristics of small and medium-sized enterprises in the capital and the development goals of inclusive finance, we will build the "three pillars" of service enterprises, families and individuals in inclusive finance. In terms of service enterprises, the first comprehensive financial service platform for small and micro enterprises in China was built and launched in view of the pain points of "high credit risk, high transaction cost and low service efficiency" in financing for small and micro enterprises, providing diversified, multi-level, all-round and full-cycle comprehensive financial services for small and micro enterprises, which achieved positive results and became the "angels in white" for small and micro enterprises during the epidemic. At present, there are nearly 47,000 registered enterprises on the platform, and the demand for docking financing exceeds10.30 billion yuan. In terms of personal services, efforts are made to improve the convenience of residents' life, travel, medical care and education. And set up Beijing Huimin Digital Branch to undertake the operation of "Beijing Connect" and "Winter Olympics Connect" and actively build a comprehensive social and financial service platform to serve the citizens of the capital. By integrating social security, government affairs, life, finance and other functions, we will improve the convenience of residents' life, travel, medical care, education and other aspects, strive to build the best people's livelihood card in China, and help build a smart city in the capital.

In short, in the era of digital economy, Beijing Jinkong Group will actively seize the opportunity of "two regions" construction, continue to try first in financial technology infrastructure construction and inclusive finance service development, and help Beijing International Science and Technology Innovation Center construction, "two regions", digital economy, supply-side structural reform and coordinated development of Beijing, Tianjin and Hebei.