By Zhang Liping, Zhao Yao & Sun Fei, Research Team on “China’s Fintech: Current Performance, Future Growth and Development Strategy,” Research Institute of Finance, DRC

Research Report, No.142, 2020 (Total 5886) 2020-6-15

Abstract: The fintech development could be divided into two dimensions from the perspective of technology-based finance: one is fintech technical dimension, which mainly consists of general technology (cloud computing and big data) and special technology (networking technology, distributed database technology and artificial intelligence technology) to form the basic technology system; the other is the financial function dimension, which mainly consists of investment and financing, operation and risk management, payment and settlement, infrastructure, information security (data assets) and user experience to form a complete financial system with financial functions. The specific development pattern, characteristics and risks of fintech could be entirely determined by an intersection or region defined by the two dimensions, such as the application of technology in different sectors including banking, securities and insurance. The rapid fintech development has raised requirements for enhancing the financial supervisory capability. It is necessary to strengthen penetrative supervision and technology-driven supervision, improve data collection and evaluation capability, formulate technical standard guidelines, enforce the protection of financial consumers’ rights and interests, and prevent and defuse financial risks.

Keywords: fintech, technical classification, financial function