Financial technology industry outlook. 1. With the change of industry structure, the leading position of the head company will be maintained, the proportion of the second echelon may be increased, and the tail company will be eliminated rapidly. The Internet head platform still maintains its advantages in traffic and data, and can form differentiated competitiveness with traditional financial institutions in terms of customer acquisition marketing, risk pricing and customer operation. However, the profitability and growth are affected by regulatory policies. Factors such as licensed operation and data governance will change the business model of the head platform, And make the income distribution of the industrial chain more clear. The competition and cooperation relationship between fintech companies and traditional financial institutions will exist for a long time to promote the service capacity of the financial industry. Internet companies with payment licenses and other financial licenses in the second tier have the possibility to increase market share. The policy orientation of antitrust may reduce the concentration of financial business, which is mainly reflected in lending business and payment business, but the probability of further expanding financial boundaries is reduced. Tail companies have less opportunities and stricter supervision. Companies carrying out financial business have strict license requirements and capital requirements. On the premise that data and flow are not dominant, their competitiveness is weak. 2. Head friendly licensees. Licensed institutions enjoy regulatory dividends, and the profit distribution of the industrial chain is inclined to licensed institutions. The withdrawal of non licensed institutions has improved the competitive environment of the industry. When the industry enters the stage of standardized development, licensed institutions have the advantage of late development, and the market share is expected to increase, which is mainly beneficial to the head institutions with national business qualification, high degree of marketization and scale advantages. 3. Optimistic about the market opportunities brought by the digital transformation of financial institutions for financial technology service providers. Under the guidance of the national 14th five year plan and the financial technology development plan and other programmatic documents, financial innovation has been promoted rapidly, financial institutions continue to increase financial technology investment, improve their financial service capabilities, and are optimistic about financial science and technology service providers with both technical and financial capabilities in subdivided fields. 4. Pay attention to the scientific and technological output of large financial institutions. Science and technology output belongs to the category of B2B business, which needs to be promoted from top to bottom. Large financial institutions have advantages in customer resources at the g-end and b-end, and have strong ability to expand their own ecosystem through the mode of “system development + comprehensive financial services”.
Investment advice. From the perspective of fundamentals, the head platform is stronger than HENGQIANG, and the leading companies are still the core target of investment. They have the advantages of flow, data and operation capacity, have strong market competitiveness and can maintain the leading position in the industry, including ant group (unlisted), China Merchants Bank Co.Ltd(600036) , China stock market news, Hundsun Technologies Inc(600570) ; From the perspective of regulatory and policy environment, encourage traditional financial institutions to accelerate digital transformation, improve the level of financial services, and benefit licensed institutions with leading financial technology layout and financial technology companies that can provide services for financial institutions; From a market perspective, at present, individual fintech stocks are at a low valuation, especially Hong Kong stock companies, which can pay attention to the opportunities for valuation repair, including card transfer, Bairong cloud, Lianyi finance, etc.
Risk warning: the macroeconomic downturn leads to a reduction in the demand for financial services or a decline in the quality of credit assets; Further tighten the supervision of financial technology and Internet finance; The innovation speed of financial science and technology has slowed down, and the application of financial science and technology has fallen short of expectations; Risk that the information used in the research report is not updated in time
