The People`s Bank of China, the country`s central bank, has announced the establishment of a FinTech committee. China`s central bank has also acted
The People`s Bank of China, the country`s central bank, has announced the establishment of a FinTech committee.
China`s central bank has also acted as the country`s financial regulator. It will organize an “in-depth study” on the impact of FinTech innovation in a few areas like monetary policy, payment and settlement and financial stability.
China has reportedly been seen as the world`s largest commercial FinTech market with 40% of its 1.38 billion people using new FinTech payment technologies. Alibaba`s Alipay and Tencent`s popular messaging and payments platform WeChat are among the most popular examples quoted in the report.
According to a rough translation of the bank`s announcement:
“The People’s Bank of China has set up a financial technology FinTech committee, aimed at strengthening FinTech work in research, work, planning and coordination. Financial technology is a technology-driven financial innovation that has injected new vitality in financial development but has also brought new challenges.”
Another prominent excerpt from the press release elaborated on FinTech applications and partnership, while also talking about RegTech:
“On FinTech Applications and Partnerships
The People’s bank of China will organize an in-depth study on the impact of financial and technological development on monetary policy, financial markets, financial stability and payment and settlement; as well as the strategic planning and policy guidance for China’s financial and technological development. We will further strengthen the partnerships and cooperation at home and abroad, establish and improve the financial technological innovation management mechanism that is suitable for China’s national conditions, handle the relationship between safety and development, and guide the proper use of new technologies in the financial field.
The application and practice of regulatory technology (RegTech) as well as the active use of large data, artificial intelligence, cloud computing and other technologies will be used to enrich financial supervision as a means to enhance cross-industry, cross-market & cross-financial risk of screening, prevention and mitigation.”
It is particularly interesting to observe how the newly established committee will impact the financial technology sector in the world`s biggest financial market.