Becoming Madame Mao

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The Global Fintech Summit was launched at the International Finance Forum (IFF) 2019 Annual Conference by the Paulson Institute and the IFF. Policy makers, business leaders and senior scholars from the United Nations, China, Europe and the Middle East engaged with delegates of the annual conference on the development and application of fintech globally. The summit was moderated by Ms. Deborah Lehr, Vice Chairman and Executive Director of the Paulson Institute, and a current IFF Board member.

 

As fintech continues to make waves, countries around the world are gradually beginning to understand the value of bringing fintech together with sustainability principles to achieve sustainability goals. In a survey report released by the International Monetary Fund in June, around two thirds of nearly 100 countries and regions interviewed have become aware ofthe potential value of fintech and are already carrying out relevant strategies at the national level as part of an effort to enhance, through fintech, industrial capabilities of financing, innovation and application.

 

With the development of technology, division of labor in the financial industry has become more market-oriented, professional and refined,and supply chains and value chain continue to advance. Financial institutionsand technology companies that previously used a simple outsourcing partnership model are now interconnected and cooperating in a variety of areas such asbusiness operations, data, technology and infrastructure.

 

In China, the examples are plenty. The "big four"banks—Bank of China, China Construction Bank, Industrial and Commercial Bank of China, and the Agricultural Bank of China—all have mutual cooperation with China’s largest domestic tech giants—Baidu, Alibaba, and Tencent. China’s environmental exchanges are also exploring methods to apply blockchain technology to domestic carbon market and future global carbon market linkage. In the green finance pilots, fintech is being used to help build financial infrastructure to facilitate green finance such as a green finance information management system, green banking supervision and evaluation system, and identification andevaluation system for green financing and green projects. In emerging countries, fintech is facilitating the implementation of inclusive finance strategies nationally.

 

The trend holds for more developed markets as well. In Austria, Vienna’s municipal government has utilized blockchain technology to issue tokens to reward citizens for low-carbon commuting. But inaddition to its benefits, all countries are beginning to realize the business, technology, network, and data associated risks with fintech development. The risks have extensive effects that pose new challenges to financial regulation andsocial stability globally, and thus, policy makers have realized fintech can be advanced more effectively by introducing and improving regulation technology.

 

At present, fintech has evolved as part of the global agenda and there is a strong need for countries to have solid information exchange with great room for cooperation including in the areas of capital management, industry consolidation, technology research and development, personnel training, infrastructure construction, and governance sharing. In China, fintech is rapidly developing, which is attracting attention globally. As such, China is likely to become a driving force in promoting the strategic development of fintech in emerging fields as well as in emerging countries.

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August 10, 2018

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