China will introduce a fintech development plan that will address various finance-related issues and hasten financing application approvals, the People's Bank of China announced.
According to China Daily, Deputy Governor of the People's Bank of China, Fan Yifei said the government will apply fintech to help boost the real economy. As part of the program, the bank teamed up with the National Development and Reform Commission to test a fintech program in Guangdong Province, Beijing, Shanghai, and seven other Chinese cities.
Most financing processes in China are automated but the upcoming plan will further automate financing procedures, including applications for funding and the establishment of product sales networks. The technology is also expected to detect financial risks at a more efficient rate to help financial institutions serve the economy better.
Fan said the new program will leverage on information networks to improve credit models. Mobile internet technology will also be used for the purpose of lowering credit service costs. As with other improved processes in China, the program will rely on artificial intelligence (AI) to incorporate finance into public services that benefit the Chinese community.
China's fintech development plan will be under supervision to ensure that risks are detected as early as possible. For coping and prevention purposes, a technology management system based on data mining and machine learning will be established.
For Fan, it is important that advanced technology is integrated into the Chinese finance system. These applications, according to Fan, will be beneficial in Beijing's bid to allocate financial resources for both major and underdeveloped regions in the world's second-largest economy.
Late last month, an Accenture report revealed that Chinese firms drove global fintech investments in 2018. According to Tech in Asia, the consulting firm said China accounted for almost half of fintech investments last year on a global note.
The report found out that Chinese companies completed $25.5 billion fintech-related transactions. These figures helped boost worldwide investments by 19 percent despite U.S. restrictions on foreign-supported investments.
In Hong Kong alone, fintech transactions increased to 19 percent last year. Overall, China completed 384 transactions, doubling the total number of 154 projects in 2017.
As proof of China's ascent in global fintech activities, Hong Kong-based online brokerage Futu Holdings's stock soared at almost 28 percent on its first day of trading in American territory.
According to Xinhua, the fintech firm saw 27.66 percent gains on the trading day, marking a rare occurrence in American stock indexes wherein American-listed Chinese listed companies battle it out against other industry giants.
