On August 22, 2019, the People’s Bank of China issued the “FinTech Development Plan (2019-2021)”, hereinafter referred to as the “plan”. The “Plan” elaborates on the important significance and development goals of the development of fintech, and clearly figure out 27 key tasks on fintech for 2019-2021, and proposes supporting measures to promote fintech.
We learnt the following from the “plan”.
Fintech are technology-driven financial innovations. The “plan” proposes to use machine learning, data mining, smart contracts and other technologies to promote the transformation and upgrading of financial sector, to provide new ways for financial system to serve the real economy, to promote the development of inclusive finance, and to prevent financial risks.
The “plan” asks financial institutions to make overall plans, and to strengthen the strategic deployment of fintech by better mechanism design and talent team building. Financial institutions are asked to disclose their innovations and applications in the fintech, as well as the number and proportion of fintech employees, in their annual reports and other official channels.
The “plan” proposes to strengthen the proper applications of fintech in five aspects: big data, cloud computing, artificial intelligence, distributed database, and online digital identity authentication.
The “Plan” pointed out that fintech should help broaden the channels of financial services, improve the quality of financial services, improve the efficiency of financial services, and to let more Chinese people and enterprises to enjoy better financial services.
The Plan particularly emphasizes the role of fintech in risk prevention and financial regulation.
We expect that in the future, relevant authorities and local governments will successively issue policies and rules to support the implementation of the “plan”. There will be more and more opportunities for universities, think tanks, technology companies and financial institutions to work together. And most importantly fintech professionals will be welcomed by the market.