Chinese FinTech Industry Slated to Grow More This Year

This 2019 seems to be a good year for China’s financial technology companies, according to SHINE, a media outlet powered by Shanghai Daily. Reports say that the country’s industry has experienced an ‘accelerated consolidation’ due to participating companies pursuing various paths.

Martin Chorzempa from Technology Review says that With China at the forefront of fintech, Western countries will not be able to catch up. According to him, this is due to the fact that the companies in the country are investing in contactless payment methods such as Ant Financial’s Alipay and Tencent’s WeChat. Moreover, the Chinese government also help the sector to grow by allowing flexibility and more breathing space for innovations. These companies also built on what other companies have developed and enhanced the tech according to their needs.

Meanwhile, SHINE mentioned that there is a possibility that the concerning state of China’s relations with the United States might have an effect on the performance of the fintech sector this year. However, a study conducted by the Bank of Communications (BoComm) is optimistic that other fields such as regulatory and insurance tech will enable continuing surges in investments. Additionally, KPMG, a consulting firm agrees about this assessment as its data shows that the country’s fintech sector is ‘positive’ for 2019.

According to the BoComm, artificial intelligence and automation will garner more attention from investors. Meanwhile, KPMG bets on blockchain technology to gain more investments, especially with regards to the implementation of the tech.