Highlight – What is the current state of Fintech in China?
In today's China, a QR code is a must-have for retail businesses. From grand department stores to food stands on street corners, QR codes are everywhere.
By scanning the codes, people can pay for almost anything, making things easier. But QR codes also make things easier for scammers. They are so accessible that a simple scanning of an unidentified barcode can lead to a large loss of money or massive personal information leak.
QR codes and their popularity exemplify the revolutionary changes brought about by financial technology – Fintech – that seeks to automate and improve the delivery and use of financial services.
It is well acknowledged that, in China, fintech is enhancing financial industry upgrading in specific, and economic transformation in general.
Now, while Chinese people enjoy better financial products and services, concerns are also rising on their risks and challenges. So, what is the current state of Fintech in China? Robert Lawrence Kuhn speaks with Tim Pagett, Leader of Deloitte Asia Pacific Financial Services Industry, and Zhang Xiaoyan, Associate Dean of PBC School of Finance at Tsinghua University.
Pedestrians walk by a sale sign with a QR code, displayed in a shop window in Shanghai, Dec. 28, 2018. / VCG Photo

Pedestrians walk by a sale sign with a QR code, displayed in a shop window in Shanghai, Dec. 28, 2018. / VCG Photo

Defining fintech can be confusing. Pagett explains that fintech is about integrating technology and financial services. It's about how the participants in the market use technology to carry out what are common day-to-day financial services and transactions.
According to Pagett, fintech in China is leading the world, with the most developed payment ecosystem and the most developed e-commerce ecosystem. Thus, fintech industry players in China have more opportunities.
Why fintech in China develops with such high speed? Zhang Xiaoyan explained that China is still an emerging market, and there are a lot of needs in the market for financing. The traditional banking system is not well established compared to that of developed countries. So, the demand and supply of financing makes a driving force for fintech development.