英文摘要

《财经》杂志   

2020年08月03日 11:39  

本文3647字,约5分钟

New Line of Supervision Ensures China’s FinTech Innovation Has Healthy Development; New Regulatory Measures for User’s Facial Recognition Payment are Needed; The Collapse of P2P Lending Industry Proves the Importance of Sticking to Business Logic; China Should Learn From the US and European Counties to Develop and Supervise FinTech

New Line of Supervision Ensures China’s FinTech Innovation Has Healthy Development

China is undergoing a new and dynamic phase of financial technological changes which will revolutionize internet financing. However, while this particular effort was launched in 2013, the technological transformation of this sector is far from reaching the second half of its targets.

China’s financial innovation has shown great vitality with numerous innovative measures. But there have also been many “fake innovations”. At present, “soft” supervision has become the basis of China’s regulatory innovation. With the deepening of financial technological developments, the demand for regulatory innovation is also increasing. For example, in August 2019 the Central Bank issued the “FinTech Development Plan (2019-2021)”. This aims to improve the basic regulatory system of financial technology.

Now at the midway point of this endeavor, we must ask: how is the progress of this three-year development plan? Reporters from Caijing exclusively interviewed three important practitioners of financial technology regulatory innovation who presented us with a detailed picture of where the regulations are leading.

 

New Regulatory Measures for User’s Facial Recognition Payment are Needed

In a recent scam case, a nursemaid used facial recognition software to steal 220,000 yuan from an elderly lady. This case caused widespread controversy, and people began to doubt the security of “the facial recognition payment” systems. However, the developers and agents of the face payment systems are fully confident of the future for this new payment method.

Some experts have said that the era of biometric payments is coming. Industry giants have the sharpest sense of smell with this trend. For example, in 2019 the two major payment giants, Alipay and WeChat Pay, invested as much as 10 billion yuan in the marketing of face recognition equipment— in just one year. But some other experts warn that moral and legal issues need to be considered. Facial recognition payments are bound to collect a lot of personal information. If the data is stolen, it will be very troublesome for both customers and providers, not to mention society as a whole.

 

The Collapse of P2P Lending Industry Proves the Importance of Sticking to Business Logic

The combination of the internet and financial sector represented by the P2P lending industry have promoted financial inclusiveness and improved user experience. But risks in them are difficult to mitigate. As a result, the rapid development of the entire P2P lending industry has become unsustainable.

In 2013, internet financial management suddenly became popular. With it, P2P financial management systems also became the most typical form of internet-based finance at that time. However, the credit risk behind this industry requires abundant capital as a guarantee. But this is beyond the capabilities of most P2P platforms. Indeed, as the leading platforms collapsed, the P2P industry finally came to a tragic ending.

Basically, the P2P industry has gone from brilliance to destruction. This once again proves to us that operators need to respect basic business logic and the essential nature of the financial industry.

 

China Should Learn From the US and European Counties to Develop and Supervise FinTech

With the penetration and development of new technology in the financial field, regulatory policies that are compatible with the risk management and rapid development of financial technology are gradually being put in place. Judging from international regulatory experience, major European and American economies have successively introduced regulatory policies on financial technology.

As leading countries in the development of FinTech, the United Kingdom, the United States, and the European Union have in recent years all stressed the importance of supervision while actively encouraging financial technology innovations. Reflecting on the regulatory development of major European and American economies, China can learn from their experience in three ways: in terms of coordinated financial function supervision, perfecting the regulatory sandbox, and consumer protection.