On January 14, the Business Management Department of the People's Bank of China announced to the public the first batch of six pilot applications for fintech innovation supervision.
Through the query of the People's Bank of China Fintech Innovation Supervision Pilot Platform, the six applications are: Internet of Things-based item traceability certification management and supply chain finance (Industrial and Commercial Bank of China), Weijiedai products (Agricultural Bank of China), and CITIC Bank Zhiling products (China CITIC Bank/China UnionPay/Duxiaoman/Ctrip), AIBank Inside products (Baixin Bank), quick review and quick loan products (Ningbo Bank), mobile POS innovative applications (China UnionPay/Xiaomi Digital Technology/JD Digital Technology).
The selection of the first batch of finalists for the "Regulatory Sandbox" mainly focuses on the application of cutting-edge technologies such as the Internet of Things, big data, artificial intelligence, and blockchain in the financial field, covering multiple application scenarios such as digital finance, and aims to alleviate the financing difficulties of small and micro enterprises Financing is expensive, improving the level of financial convenience services, expanding financial service channels, etc. The pilot project represents the mainstream direction and advanced achievements of my country's financial technology development at present, and has the characteristics of advanced technology, universal application of scenarios, and strong demonstration.
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Image source/network
In recent years, in the wave of global financial technology development, China's financial technology industry has risen rapidly. But while helping the traditional financial industry to improve quality and efficiency, its hidden risks are gradually revealed. On the one hand, financial technology institutions expect that relevant regulations will give enough space for innovation; on the other hand, regulators are also trying to find a balance between technological innovation and risk prevention and control.
In this context, the Chinese version of the financial technology "regulatory sandbox" came into being.
On December 5 last year, the central bank issued an announcement stating that the People's Bank of China supports the pilot project of financial technology innovation supervision in Beijing, explores the construction of financial technology innovation supervision tools that are in line with my country's national conditions and is in line with international standards, and guides licensed financial institutions to operate in accordance with the law. Under the premise of regulating and protecting consumers' rights and interests, use modern information technology to empower financial quality and efficiency, and create a financial technology innovation and development environment that is upright, safe, inclusive, and open.
The Beijing financial supervision department stated that it will explore and promote the implementation of financial technology regulatory innovation pilots centered on regulatory sandboxes.On December 23, 2019, Beijing's financial technology innovation supervision pilot work was officially launched.
Why did the fintech innovation supervision pilot land in Beijing first?
Zeng Zhicheng, deputy director of the central bank's business management department, said bluntly that Beijing has unique resource advantages in developing the financial technology industry. A financial management center, a complete financial system and a huge market space provide rich application scenarios and a good regulatory environment for the development of Beijing's financial technology.
Yin Yong, Member of the Standing Committee of the Beijing Municipal Party Committee and Deputy Mayor, previously held the first "Chengfang Financial Technology Forum",Using a set of data to demonstrate Beijing's financial technology strength:Beijing currently has more than 700 licensed financial legal entities, and its total financial assets account for 45% of the country's total; Beijing's technology R&D investment accounts for nearly 6% of the regional GDP, which is 3 times higher than the national average. more than double;
In addition, Beijing now has more than 200 newly registered innovative companies every day, and the number of companies such as technology and unicorns ranks second in the world.
Previously, as soon as the "regulatory sandbox" came out to encourage industrial innovation and provide more development space for financial technology, it set off an upsurge of discussion in the virtual currency industry. Previously, there was a view that the Chinese version of the financial technology "regulatory sandbox" does not rule out the possibility of including online lending, virtual currency and other institutions.
However, on December 7 last year, at the "Beijing Financial Technology Innovation Media Conference",image description
Beijing Financial Technology Innovation Media Conference Photo source/People's Daily Online
At the same time, it is not ruled out that projects launched by financial technology companies and licensed institutions will enter. In addition to the first batch of 6 projects disclosed above, 46 financial technology projects in the Beijing area have finally been approved by the six ministries and commissions of the state for pilot projects, and will gradually enter the "regulatory sandbox" for pilot work.
In general, the launch of the Chinese version of the "Regulatory Sandbox" has clarified three key points for the financial technology field,The first is the bottom line of innovation, that is, what can be done and what cannot be done, and the phenomenon of abusing innovation is restrained while encouraging innovation;The second is to open up the boundaries of innovation, to provide a broader trial and error space for the development of financial technology projects;The last is to achieve the achievements of financial technology innovation, let truly effective innovations benefit the society and realize inclusive finance, and at the same time provide some usable innovative tools for the structural reform of the financial supply side.
