Despite the economic downturn and the impact of the COVID-19 pandemic, China’s financial technology companies are optimistic about the sector’s future development.
According to a joint study conducted by accounting firm KPMG and the National Internet Finance Association of China, the average confidence index of industry players remained stable at 82 compared with last year.
The overall digital transformation of the financial industry has deepened in 2022 with the implementation of a series of policy measures, with securities houses and asset managers leading the way, Jacky Zou, vice chairman of KPMG China, said.
Meanwhile, over 40 percent of fintech enterprises surveyed stated they have expanded or are planning to expand their business to Southeast Asian countries, an emerging hot spot over the past several years, the study found.
Furthermore, the cooperation between financial institutions and fintech service providers has become more mature and standardized, but concerns about data security and privacy protection are cited as the most difficult challenges for future collaborations.
In terms of funding, private equity and venture capital remain the most active investors in the financial technology space, while investment from financial institutions and Internet companies is increasing.
Financial technology is a catch-all term for new technology that aims to improve the delivery, customer experience, and use of financial services.
Mobile payments, digital banking, online insurance, and intelligent investment advice are all topics that are frequently discussed in the industry.
The People’s Bank of China, the country’s central bank, released a fintech development plan for 2022 to 2025 earlier this year, urging all parties to improve coordination and increase efforts to strengthen fintech governance and build stronger data capability.