Recent research from reliable and major sources predicts that China will be a global leader in fintech and Blockchain industries. The research develop
Recent research from reliable and major sources predicts that China will be a global leader in fintech and Blockchain industries. The research development firms include DBS and EY. This prediction is likely to be accelerated by the various organizations and consortiums formed to support the growth and development of fintech and Blockchain startups. Cointelegraph reported that over the last few years, a substantial number of consumers have embraced better alternatives to traditional banking systems.
Some Chinese fintech companies such as Alibabas Ant Financial have been able to secure a market capital of $60 billion. There are 2 major reasons why these Chinese fintech companies have even overtaken companies such as Bitcoin.
Favorable and Collaborative Ecosystem
The main reason contributing to the high growth rate is the ecosystem of the Chinese Industries. Chinese industry leaders often come together to form a consortium that ensures that resources and investments are fairly allocated to boost startups and some innovative service providers.
The US Blockchain and Fintech industries have individual consortiums with self interest to commercialize Blockchain technology. This has led to a competitive market instead of a favorable and collaborative ecosystem. The Chinese Blockchain has a consortium called China Ledger. This consortium was created for the sole purpose of providing a basis for Industry leading companies and Blockchain startups to work with. This efforts lead to the Chinese Blockchain market main aim to bring innovation especially in the inefficient and traditional financial market.
Feasible investment methods and prominent investors
Feasible investment method, Prominent Investors and conglomerates are another factor behind the growth of the Chinese fintech industry. The government of China recently launched a $1.5 fintech fund. This fund is to be capital for startups venturing in the fintech industry. Chinese state owned companies formed Asia Fin Tech Merger and Acquisition Fund of Funds. This consortium main objective is to ensure that all fields in the Chinese fintech industry receive enough resources and capital.
China is predicted to lead the global Blockchain and fintech market in 2017 if these efforts continue.