With the new round of technological and industrial revolutions progressing in the world, new information technologies such as cloud computing, data & analytics, artificial intelligence and blockchain have made great strides and set off a wave of financial technology (fintech) sweeping the globe. How is fintech shaping China’s financial services sector?
Strategies and mindset: Strengthen innovation through internal efforts and partnerships with fintech companies in the next three to five years;
Resource allocation: Commit to investing in emerging technologies and intend to allocate nearly a third of annual turnover to fintech investments.
Action plan: Plan to increase partnership with fintech companies, but concerns around IT security, regulatory uncertainty and IT compatibility need to be addressed.
From PwC’s perspective, fintech will impact the financial services sector in five aspects:
Fintech companies tend to snatch away the revenues of traditional financial institutions and force them to be more competitive and vibrant;
Technology disrupts the logic of traditional financial institutions and empowers them to adjust their strategic direction;
Electronic channel services occupy the entrance, driving traditional financial institutions to achieve full channel integration and coordination;
Innovations in fintech companies have sprung up, inspiring traditional financial institutions to innovate their business models;
Business innovation drives management innovation, forcing traditional financial institutions to reform their organisational model and IT architecture.