Industry development analysis
In 2020, the cumulative technical capital investment of banks, insurance and securities institutions reached 269.19 billion yuan, and China’s fintech has moved towards an advanced stage of intelligence driven by trusted technology.
2021 is the closing year of the “three-year plan for financial science and technology”. In the next few years, the technology investment and digital innovation practice of financial institutions will mainly focus on three directions: infrastructure technology construction and upgrading, business demand-oriented digital practice, and innovation practice based on digital financial infrastructure.
Technology development insight
According to “iResearch: fintech – technology strategy matrix (2021, China)”: cloud computing, distributed core system, distributed database, privacy computing, alliance chain and other technologies are in the category of “core strategy”, it is recommended that financial institutions pay attention to the investment and application of these technologies.
Fintech technology market currently has four business models of “sales of technical products, customized services, charging by volume (nodes, Siasun Robot&Automation Co.Ltd(300024) quantity, flow, etc.) and joint profit sharing”, with huge overall market opportunities.
Subdivision research
In 2020, Bank Of China Limited(601988) institutions will invest 207.8 billion yuan in technology and the cost of technology procurement will reach 61.8 billion yuan; The technology input of Chinese insurance institutions reached 35.1 billion yuan, and the technology procurement cost of Chinese insurance institutions reached 18.3 billion yuan; China’s securities institutions invested 26.29 billion yuan in technology.
Based on the “development quadrant of scientific and technological efficiency from 2020 to 2021”:
a. In the banking field, it has shown good scientific and technological efficiency in the use cases of remote video banking, digital RMB, data middle platform and data governance;
b. In the insurance field, the performance of use cases such as channel and marketing (promoted by salestech), data middle platform and global digitization is better;
c. The securities sector has shown relatively leading scientific and technological efficiency in digital supervision and wealth management business represented by tamp.
Trend Outlook
In the next five years, China’s fintech industry will enter a “credible era”, and the integration of credibility and intelligence will become the main theme of fintech development in the next 10 years.
Data governance and data trusted circulation will become the entry point for the development of trusted technology in recent five years, and fintech’s “two-tier capability” and “three-tier capability” enter the period of collaborative development.
