Xinhua news agency, Beijing, November (20): proper regulation will help finance technology return to its source.
Shi Ge, Xu Sheng
The progress of Internet technology has led to the rapid development of financial science and technology, but technological innovation often makes people ignore or even cover up the risk of technology application. How to balance regulation and innovation has become a topic of concern in the recent financial and technological circles. The industry believes that proper regulation will help finance technology return to its original source and truly serve the real economy.
China's financial technology industry started from online payment, after years of development, has covered payment, credit, investment, insurance, credit and other business, especially mobile payment has led the development of the world.
"Technology companies have attracted a large number of customers by virtue of technological advantages and brand effects, providing opportunities for financial innovation and development, introducing competition, and improving the efficiency of the financial system." Zhu Jun, director of the international division of the people's Bank of China, said at the 2018 global financial technology (Beijing) summit.
For example, after Ali and Tencent accumulated a large number of customers in major businesses such as online business platform, social networking, games and so on, they set foot in the financial industry with payment services as the entry point, forming the whole financial business chain. Internationally, Amazon has also built an ecosystem of financial business, covering almost the entire banking business landscape.
"The development of financial science and technology helps to improve the inclusiveness of financial services, reduce transaction costs, expand market capacity, reduce risk concentration, and provide new means to solve the imbalance and inadequacy of financial development." Cai Esheng, President of northern New Financial Research Institute, said.
In his view, the development of financial science and technology has brought both opportunities and challenges to technological innovative companies. Financial science and technology are reconstructing the logic between financial supervision and financial business, which makes many new industries dissociate from the traditional financial supervision system.
"Regulators often lack sufficient technical means to dynamically monitor, real-time track and pre-warn financial technology, resulting in regulatory loopholes, resulting in imperfect data privacy protection, technology and data monopoly and other issues." Cai Esheng said.
Li Dongrong, president of China Internet Finance Association, believes that the opportunities and challenges brought by the development of financial science and technology should be viewed dialectically. "Regulation and innovation are not totally opposed, but accompanied by each other. Appropriate supervision will help accelerate the transformation of financial science and technology from high-speed development to high-quality development, return to the financial origin, and truly obey it." In the real economy.
"In the long run, if the regulatory level lacks guidance for large technology companies, it will reduce the efficiency of financial operations and aggravate inequity and imbalance." Zhu Jun said that regulatory arbitrage should be dealt with by strengthening rule-making, while encouraging innovation and improving efficiency, fairness should be taken into account, and risk factors affecting financial stability should be properly resolved.
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