China tops world fintech rankings
China has outpaced London, New York and Silicon Valley to become the world’s undisputed global fintech leader, according to a report by DBS and Ernst & Young.
“The speed at which China’s fintech landscape has developed is truly remarkable,” he says. “It’s gotten this far because China’s landscape has operated in a sandbox-like environment conducive for FinTech to thrive — a strong domestic market, coupled with a constant push for innovation and experimentation driven by leading giants, unhindered by international influence.”
Chinese consumers’ propensity toward digital adoption is also seen as a key driver behind the country’s fintech boom, featuring a disproportionately large presence of tech-savvy millennials who are open to new technologies.
The report notes that 40% of Chinese consumers use new payments methods compared with 4% in Singapore, while 35% use non-bank fintech firms to access insurance products compared with 1%-2% in many Southeast Asian markets. There are also significantly higher rates of fintech participation in wealth management and lending.
James Lloyd, EY Asia-Pacific fintech Leader, says, “China’s unique mix of rapid urbanisation, massive and underserved market, e-commerce growth, explosion in online and mobile phone penetration, and customer adoption willingness have created a fertile ground for innovation in commerce, banking and financial services more broadly.”
Source: Finextra