Monday, 27 August 2018

Fintech Guide in China

Fanche's opportunities and risks are in front of the minds of financial sector policy makers these days, and many are looking forward to encouraging and guide China. China's experience has shown that players can be transformed into a new, technological-based financial sector - how to change the risk of paying, saving, lending, investing and risking yourself. Can be done But this experience also comes with caveats and caution stories. China's financial participation experience is discussed on the subject of the new report on the co-author of the World Bank and the People's Bank of China by the Chinese bank.

The report explains two foot models in China, which describes both Punch opportunities and risks: (1) Digital payment providers, and (2) Partner to Non-Banks (P2P) lending platforms.

Nonbank Digital Payment Providers

Ali Baba and Tencent were originally established as an e-commerce and social network company. But now there are big players in the market of both retail finance services. This change began with the integration of payment activists in their current online networks. Alibaba's first price was Alpey in financial products, which began to facilitate trust in 2004 and build trust between buyers and sellers in the online market of Taobao, Alibaba. Similarly, the integration of payment products in Tencent's social media platform has proven a massive success model that allows consumers to add social and financial interactions, including sending gifts or delivery.

One decade fast, and hundreds of millions of customers now use the payment services offered by non-bank digital providers such as Alpai and Tenpay, as well as financial products offered by Anti-Fine A wide range, in which a group of companies is Alpey is a member. Ali Baba and Tencent were non-bank leaders in opening digital payments. This result is a dramatic evolution from exposed society in many major cities of China. Chinese experience shows that the design and supply of modern financial products can be facilitated by online, network based business model technology, network effects, big data, and opportunities for cross subsidy.

But while the punch has certainly improved the availability, convenience and stability of the financial products for consumers in these major online ecosystems, there is no less consensus in which non-bank digital payment providers Non-China, "Last Mail" users have reached China. Users who do not use social media or e-commerce platforms - can indulge in poor financial benefits, such as poor, rural and elderly - limited models. The lack of strong data and analysis is another challenge in determining the river, based on which providers reach "last mail" users.

In fact, many developments in reaching "last mail" with basic transaction products have been completed by a traditional financial service provider. For example, there are approximately one million third party party retail agents working by the financial service provider in China, with no other branch branches, with many agents working in the village. . Of these agents, at least at least digital payment providers have been set up. Channel transfer and social transformers' channels through agents also play an important role in reaching outward adults.

In the place of credit, punch providers have got the same status barrier. New digital credit providers, internet banks, online micro credit companies (MCSZs), and P2P platforms are included. Especially, focusing on serving large businesses, bypassing P2P platforms on key market opportunities to reach credit customers by ignoring traditional financial services. The P2P lending platform has more than 2000 platforms steam in Chinese market ten years ago and serves more than 8 million lenders in China.

Unfortunately, there are many incidents of consumer infringement in the P2P industry. Many lenders / investors believed that their funds have been moved to the specific lender or have been guaranteed by the loan P2P platform - the beliefs, which often were often wrong. There was also a case of fraud. In a high-profile case, Ezubao was shut down in the company after 2015, authorities found that this Ponzzi Scheme is working in which counterfeit investment products were sold almost one million investors.

These issues were increasingly expanding by "waiting and see" inactive, Chinese officials used primarily to respect the new French innovation in place of P2P. By 2016, Chinese authorities started more active approaches to regulate the POP platforms, including issuing unlimited rules for the administration

Source Fintech in China :  
1.      Gma Magazine
2.      Medium 
3.      Financial times
4.       SCMP

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