Fintech and its global expansion

Technological and industrial upheaval is in commencement. The digital and collective economies have built up rapidly, with a sudden increase of artificial intelligence big data and cloud computing. Fintech is an intense blend of finance and technology, and is flattering the focus of global financial innovation and expansion.

Many countries and international businesses have formulated policies to promote fintech development. Countries such as the UK, Singapore and Australia have begun to implement a regulatory sandbox to create an inclusive and innovative regulatory environment for fintech. Before USPresident Barack Obama s departure from office in , the US National Economic Council published a white paper entitled Framework for fintech, which clearly set out the administration s principles and framework policies for innovation in fintech, and aimed to promote its sound and sustainable development.

In its growth, development, governance and continuing globalization, the world economy is undergoing profound and multifaceted changes, and faces new risks and uncertainties. However, its upward trend means expectations for the market are gradually picking up. China s economy is also shifting from a phase of rapid growth to one of high quality development. After the 19th National Congress of the Communist Party of China, China has extended supply side structural reforms and promoted synergetic development between the real economy, technological innovation, modern finance and human resources that have increasingly enhanced its economic innovation and competitiveness.

The International Monetary Fund, the Financial Stability Board, the International Businesses for Standardization and other international groups have divined the huge importance of fintech, and set up research groups, working groups and specialist committees. These will undertake deep analysis of the impacts on monetary policy, financial stability and international financial governance, and will play an active role in establishing the international policy framework for fintech. After years of discussion, a global consensus of principles on fintech has been reached. Some principles emphasize the driving force of scientific and technological innovation in fintech, and that while developing consumer protection should be the premise, inclusive finance should be the highlight and risk prevention the core, thus establishing guidelines for countries intending to promote sound fintech development.

The healthy and sustainable development of global fintech can be continued in the following ways. First, there is a need to pay attention to the development value, development concept and innovation trends. An old saying in China is when pulling a wagon, we should both lower our heads to take care of the wagon and look up for the road , emphasizing the importance of future directions of development. Finance is a widespread, wealth oriented industry characterized by high risk and inherent vulnerability. These properties without a correct development value or concept in place can result in overexpansion, irrational prosperity and economic crisis. For example, the subprime mortgage crisis that began in 2007 2008 and led to the recession in the US and global financial crisis. Other crises around the globe have been caused by similar mechanisms deviation and overcomplicated financial innovation.

Source: HOB

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