Fintech firms must behave like banks, China regulator says as it ring-fences runaway industry to rein in potential risks

China’s financial regulators have articulated their vision of how internet-driven technology should intersect and interact with banking and finance, a week after mothballing the world’s largest initial public offering and setting off a stock market rout in Hong Kong that wiped out US$260 billion in value. “Fintech has improved the efficiency of financial services, but it has not fundamentally changed the core nature of finance,” said Liang, adding “[we have to] include financial activities under the same comprehensive regulatory [ambit].”

While he recognised the benefits that fintech has brought changes to the avenues for delivering finance, and upgrade services efficiencies, he however makes no differentiation on digitalisation of financial services by banks as a distinct evolutionary process from those by non-banking fintech groups.

Read the full article at South China Morning Post

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2020-11-12T10:42:43+05:30November 12th, 2020|Categories: Banking & Finance, Compliance, FIAKS daily, Finance, Fintech & Technology, Innovation, Regulator, Technology|Tags: |Comments Off on Fintech firms must behave like banks, China regulator says as it ring-fences runaway industry to rein in potential risks
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