Fintech, which originated in Europe and especially in the U.S., has a profound technical and institutional background. The U.S. completed interest rate marketization in 1986, and the marketization of interest rates combined with the development of internet technology makes internet banks without branch outlets possible. Internet banks can provide competitive deposit rates by removing the cost of traditional outlets, and they can carry out specialized management in the lending market. This makes internet banking an important part of the U.S. banking industry.
Fintech has received extensive attention in China. Optimists predict that it will bring about revolutionary changes, and even subvert traditional finance, but some people think that fintech is a false proposition. From a practical point of view, the diversity of fintech models can meet the financial needs of more groups, reduce service costs and improve service efficiency--placing great hopes for development of inclusive finance. At the same time, because some of the online lending is not standardized and hurts the interests of investors, appeals to strengthening lending supervision have been made. Given separate supervisory institutions, it can be difficult to determine which regulatory authorities should manage which license, so complying with the law and self-discipline is particularly important.
The internet changes finance and innovation releases dividends. The internet has shown disruptive power in many industries, and it has also show its cutting edge in the financial industry. Perhaps this is a good chance for overtaking incumbency, so let’s meet the spring of fintech with a tolerate attitude and solid preparation.
