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Internet Finance in China

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Chinese Banking Reform

Part of the book series: The Nottingham China Policy Institute Series ((NCP))

Abstract

In the past decade, the financial services industry has changed significantly, especially after the 2008 global financial crisis. The emergence of FinTech has been enabled by a “perfect storm” of rising customer expectations for services, increased access to VC funding, reduced barriers to entry, and accelerated technological advancements (World FinTech Report, Capgemini Consulting Technology Outsourcing, 2017). The dramatic rise of FinTech opens up a revolutionary means of financing and global FinTech investment continues to grow; it reached $15 billion by mid-August 2016 (The Fintech Ecosystem Report, Business Insider’s premium research service, 2016). More than 80% of global financial services companies consider their business at risk and plan to increase FinTech partnerships with tech companies to avoid losing revenue to innovators (Redrawing the lines: FinTech’s growing influence on Financial Services, Global FinTech Report, 2017). As mainstream financial institutions adopt new business models and emerging technologies, FinTech and the financial industry become more integrated. The influence of FinTech on the markets is growing with significant long-term potential.

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Notes

  1. 1.

    Recent regulatory moves in the United States are going in this direction. For example, in December 2016, a key US regulator—the Office of the Comptroller of the Currency—announced to regulate Fintech firms more like traditional lenders and chartered Fintech would be formally subjected to federal banking rules. Fintech refers to financial technology that is an industry in which companies use new technology and innovation to offer financial services competing with traditional financial institutions and intermediaries.

  2. 2.

    Detailed regulations and laws are available on the official website of the Payment and Clearing Association of China.

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Author information

Authors and Affiliations

  1. Middlesex University, London, UK

    Chunxia Jiang

  2. University of Nottingham, Nottingham, UK

    Shujie Yao

  3. Chongqing University, Chongqing, China

    Shujie Yao

Authors
  1. Chunxia Jiang
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  2. Shujie Yao
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Correspondence to Chunxia Jiang .

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Jiang, C., Yao, S. (2017). Internet Finance in China. In: Chinese Banking Reform. The Nottingham China Policy Institute Series. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-63925-3_7

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  • DOI: https://doi.org/10.1007/978-3-319-63925-3_7

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  • Publisher Name: Palgrave Macmillan, Cham

  • Print ISBN: 978-3-319-63924-6

  • Online ISBN: 978-3-319-63925-3

  • eBook Packages: Economics and FinanceEconomics and Finance (R0)

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