Chinese FinTech companies have emerged as important players on the global market, according to a recent report conducted by research firm Ernst &
Chinese FinTech companies have emerged as important players on the global market, according to a recent report conducted by research firm Ernst & Young (EY) and Singaporean bank DBS.
“While London, New York and Silicon Valley, compete to position themselves as the world’s ‘FinTech hub’, China has leapfrogged ahead to become the undoubted centre of global FinTech innovation and adoption – thanks to developments across multiple hubs, such as Shanghai, Hangzhou, Beijing, and Shenzhen. “, reads the foreword in the research paper named “The Rise of Fintech in China: Redefining Financial Services”.
The report attributes China`s growth to multiple factors, among them the scale of unmet needs, regulatory facilitation and an easy access to capital.
Neal Cross, DBS chief innovation officer, said before finextra.com: “It’s gotten this far because China’s landscape has operated in a sandbox-like environment conducive for FinTech to thrive — a strong domestic market, coupled with a constant push for innovation and experimentation driven by leading giants, unhindered by international influence,”
Also, researchers and analysts at EY and DBS have stated that Chinese consumers demonstrate striking willingness to adopt FinTech services. “Forty percent of consumers in China are using new payment methods compared to 4% in Singapore. Thirty-five percent are using FinTech to access insurance products compared to 1-2% in many Southeast Asian markets.”, said the report.
However, it remains to be seen how Chinese firms will expand out of China, stated the authors. Perhaps, we may see direct competition between the likes Baidu and Google, Alibaba and Amazon, Tencent and Facebook. “The next few years will be an exciting time for the industry. Watch this space.”, concluded the research.