Experts: To expand, fintech must support the real economy

To expand its competitiveness, the financial technology sector should be prepared to serve the entire economy, financial insiders told a conference on Monday.

The fifth (2018) Financial Science and Technology Summit and Financial Technology Enabling Real Economy and Blockchain Landing Application was launched on Monday during the ongoing 20th China International Fair for Investment and Trade. The event attracted experts and senior executives from the financial industry to discuss the applications of financial technology to the frontiers of real economy and the latest trend in the industry.

"In recent years, financial technology has become the key area of focus in the financial industry," said Yao Zhiping, chief economic director of the Xiamen financial affairs office.

The trend of promoting reform and innovation in the financial service industry through cutting-edge technology such as big data, blockchain and cloud computing, and integrating fintech with the real economy, are becoming more and more obvious, Yao said.

Financial technology, or fintech, is a broad term for new technology and innovation that aims to compete with traditional financial methods in such services as banking and investing.

Cai Kailong, founder of Touch Wood, a venture capital management company, said that fintech is best considered a combination of traditional finance and advanced technology, which will drive new products and industries related to payments, deposits, loans and investments. "Fintech should serve the real economy so that it can maintain its vitality and long-term development," Cai said.

Li Ji, general manager of Xiamen Cross-Strait Equity Exchange, said that at present, fintech in China is developing rapidly with great impetus, and that emerging fintech and its business are continuing to grow. "In the next five to 10 years, there will be a upsurge for the Chinese financial industry to emerge as world renowned fintech companies," Li said.

As a new technology in the financial industry, the application of blockchain was also discussed.

"Blockchain is a decentralization technology and we believe in it," said David Liu, chairman of an international networking organization.

The organization will connect its industries around the world with better and more effective mechanisms using the technology, he added.

During the summit, Sino-King Tomm Bo Data Management, a blockchain technology provider, signed a cooperation agreement to aid its industries around the world, transforming their blockchain technologies to increase production efficiency and enhance the industries' brand value at low cost.

Fintech must develop based on traditional finance models to aid in ramping up its competitiveness and must serve the real economy to ensure its development, said Chou Yi, director of the Taiwan Institute of Economic Research.

Finance is the blood of economy that requires innovation to develop with vital energy, Chou said.

liangkaiyan@chinadaily.com.cn

(China Daily 09/11/2018 page15)