Promote the accumulation of financial technology innovation

Mondo Technology Updated on 2024-02-02

At present, artificial intelligence, big data, cloud computing, Internet of Things and other information technologies are gradually integrated with financial services, not only the financial consumption experience is becoming more and more intelligent, but also new technologies are constantly embedded in people's livelihood fields such as clothing, food, housing and transportation, medical education, and e-commerce, promoting more refined and diversified financial services. With the support of technology, financial institutions have also improved their ability to attract customers and open up new ways to reach customers, effectively improving the coverage and availability of services, and providing more accurate and effective financial services in key areas such as small and micro enterprises, private enterprises, and poverty alleviation, which has alleviated the problems of difficult and expensive financing to a certain extent. It can be seen that financial technology has enriched and improved the functions of traditional finance, improved the quality of financial services, and enhanced the ability to provide financial services to the real economy.

The "Fintech Development Plan (2022-2025)" issued by the People's Bank of China in 2022 pointed out that it is necessary to promote China's financial technology from "pillars and beams" to a new stage of "accumulation of momentum", and strive to achieve a leapfrog improvement in overall level and core competitiveness by 2025. The promulgation of the Plan provides a policy guarantee for further promoting the deeper integration and sustainable development of finance and technology, as well as better meeting the new requirements of the digital economy era. In the future, with the rapid development of financial model development and industry application, the application efficiency and scenario integration ability of financial technology will be improved, which will surely lead the financial industry into a new era.

Financial institutions attach great importance to the layout in the field of financial technology. According to the "2023 Research Report on the Digital Transformation of China's Banking Industry" released by iResearch, the scale of IT investment in China's banking industry will reach 400 billion yuan in 2023, a year-on-year increase of 246%, accounting for 28%。According to a survey jointly conducted by the China Banking Association and PricewaterhouseCoopers, more than 50% of bankers surveyed believe that fintech will lead digital transformation and drive business growth, which is the primary profit growth point for the banking industry in the future.

To improve and enhance the ability of fintech services, financial institutions need to strengthen top-level design, combine technology and business development, and form a comprehensive fintech product supply system. Ensure the consistency of technology introduction and business goals, better embed financial services into the diversified scenarios of the digital economy, form complementary and synergies in platforms, scenarios, products, management and technology, accelerate the release of the output effect of scientific and technological innovation, realize the digital transformation of financial service capabilities, and form a closed loop of comprehensive service capabilities based on financial technology.

The sustainable development of fintech must be built on the basis of further strengthening the ecosystem. Financial institutions, scientific and technological innovation enterprises, Internet platforms, relevant departments and other business entities in the fintech ecosystem should uphold the concept of open cooperation, give full play to their professional advantages in their respective segments, strengthen cooperation in the fields of digital economy, technology research and development and application, talent cultivation, network scene construction, business reconstruction, policy guarantee, etc., promote the establishment of information sharing and collaboration mechanisms between different entities and institutions, quickly adapt to market demand and changes, and create an open, innovative, A collaborative fintech ecosystem.

It is also important that the innovative development of fintech cannot ignore the lifeline and bottom line of financial security. In the new technological environment, financial institutions will face more hidden credit risks, operational risks, market risks, liquidity risks, compliance risks, and reputational risks, and the possibility of systemic risks will increase.

It is necessary to strengthen the classification and sorting out of the risks of fintech business, and establish a comprehensive risk management framework and long-term mechanism. Establish a risk "wall" to prevent cross-contagion of different risks and ensure that systemic financial risks do not occur. Regulators should strike a balance between innovation and risk, remain sensitive and forward-looking to new technologies, and formulate rules and guide the standardized development of fintech applications through pre-regulatory means. Accelerate the implementation of the financial regulatory sandbox and reduce the cost of compliance uncertainty. Actively participate in the formulation of industry standards and data security legislation, and continuously improve the security norms of fintech business. (Author: Li Jianjun **Economy**).

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