By Shi Guang, Institute of Finance, DRC

Research Report, Special Issue, No.61, 2018 (Total 1628) 2018-12-27

Abstract: Scientific and technological change is leading a new round of innovation and development of financial industry. At present, driven by strong momentum, fintech is witnessing a rapid development in the world, its impact on various fields of finance has been swiftly released, and the financial industrial pattern has been reshaped through multiple mechanisms such as reducing transaction costs, narrowing down information asymmetry, and enhancing the effect of economic scale. Fintech has a far-reaching impact on the financial industry, including diversification of financial market entities, mixed financial business models, ecology-oriented financial industrial chain, scenario application of financial business, inclusive supply of financial services and asset-based financial basic data. To promote the healthy development of fintech, we need to deal properly with the relations between efficiency and risk, centralization and decentralization, science and technology guidance and follow-up supervision in a balanced manner. Fintech could be used to improve the efficiency of the real economy and financial services and create pressure on financial institutions to deepen reform. At the same time, we need to pay attention to risk prevention, speed up the modernization of financial supervision capacity, protect vulnerable groups, and strengthen the protection of consumers’ rights and information security.

Key words: financial science and technology (fintech), big data, artificial intelligence (AI)