The significance of fintech in this age should be connected to encourage both technological and institutional improvement, regulate and civilizing, convention, assessment and standards in an appropriate manner, and betterment of the amalgamation of technological and institutional innovation, identify the directions, underneath lines and regulations for fintech. These procedures have made huge development towards to legalize and standard fintech.
New tools such as the regulatory sandbox might strengthen fintech supervision position. By applying new tools, one can set up mechanisms for trial and error, fault tolerance and error correction. Under the premise of controllable risk, it can conduct pilot projects and product testing, providing fintech with better future performance. On the other hand, one must ensure that all financial services are under supervision and all services have market access. Prudent supplementary supervision and a long term regulatory mechanism with full coverage of financial and technological risks should be established.
The mechanism should be thorough and able to track transactions from source to the end destination, and connect all links between assets and debt. Regulators must constantly improve their regulatory capabilities and improve their management practices after all, it is not an easy job for supervision departments to have complete control of fintech innovation it requires hard work and capability.
Fourth, industry self discipline is, theoretically, a typical market restraint mechanism. Through market oriented standards and rules, information disclosure and self policing, opportunistic behaviors by employers that consider only short term interests can be reduced, and the integrity awareness of market participants can be cultivated to form positive external social capital. At the same time, industry self discipline is an effective market mechanism for communication.
With the development of fintech, the financial services market is becoming increasingly complex and overlapping. Financial industry developments have depended on difficult to regulate mixed operations. The complexity and interdependence of the market has caused the government and market to suffer from severe information asymmetry, resulting in onerous management of market expectations. Therefore, through industry self discipline, standardized, transparent and centralized industry data for the government can establish effective communication and dialogue mechanisms, and reduce the cost of communication between the government and the market.
Wherever administrative regulation and industry self discipline can be coordinate, a mechanism of great significance to the supervision of innovation can be established. In this respect, many have already made inroads, the State Council approved the establishment of a national self regulatory businesses specializing in fintech. Since then, self regulatory groups have respected the market rules and served as a bridge between the government and the market. They have also attempted to accelerate the gathering of data statistics, risk monitoring, information disclosure and credit information sharing. In particular, they have focused on the prevention and control of financial risks as well as consumer protections, and unveiled industry standards and self regulatory rules on information disclosure, contract elements registration and deposit of funds. Progress has also been made in regulating the market order of fintech and promoting its sound development.
Fintech is constantly developing and maturing, and many fundamental tasks still need to be explored. NIFA is willing to work together with every country to strengthen communication and co operation, to learn from each other, and to jointly promote fintech worldwide, in order to serve the global economy and social development.