The country contributes to some of the world’s largest investments in the sector, and has been adopting technologies faster than anywhere else. The likes of Alipay, Lufax and ZhongAn Insurance have made their names across the globe by developing some of the most disruptive business models.
However, every coin has two sides. Increasing numbers of voices have been questioning the health and legitimacy of the fintech business models. Regulators and investors have been alerted by the growing closures of peer-to-peer companies and the recent defaults of high-profile online investment products.
We have not yet seen the full potential of fintech in China. We believe that technological advances, coupled with the unique circumstances of China’s financial system, will propel fintech companies to further drive innovation and disrupt the traditional financial services space. Premier Li Keqiang commented at the inauguration ceremony of WeBank, the new web-based bank owned by Tencent, “It’s one small step for WeBank, one giant step for the country’s financial reform.”
Such changing landscape requires participants in the Chinese fintech space to plan strategically, invest significantly and conduct prompt actions.