Published: 27 January 2020
Author: FINTECH Circle & KAE
China’s fintech industry is home to eight of the world’s leading fintech unicorns, with an average value of $26.8 billion – eight times greater than the average value of North American fintech unicorns.
But how is China doing it? Well, behind its rapid fintech development lies a country with unique circumstances: 1) a large, tech-savvy population, and 2) an open regulatory environment. This is reinforced by China’s dedication to its tech giants – Alibaba, Baidu and Tencent, who have hardly had restrictions imposed on their growth.
What regulation is currently in place? There is no single regulatory body responsible for the regulation of FinTech products and services. Instead, different FinTech services and products are regulated by different regulatory bodies. Though change is in sight, Banks are increasingly realising that there is a requirement to bring order to this rapidly expanding industry. The People’s Bank of China have commented that the fintech industry either lacks the standards or needs to update the existing standards. This suggests there is consensus that the current regulations for FinTech are not clear or robust enough to drive high-quality developments in the industry.
Watch this video to lean more about the rising concern expressed by banks and regulators and the reasons behind these future changes.
Read KAE’s insight on this topic here.
We will continue the discussion on China’s fintech landscape at the FINTECH Bridge China-UK conference on the 27th Feb at Allen & Overy.
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