China takes lead in fintech innovations: experts

China is at the forefront of financial technological innovations that include mobile payment and artificial intelligence (AI), according to industry watchers at the SWIFT International Banker’s Operation Seminar, or Sibos, in Beijing.

The four-day Sibos 2024 financial conference concluded on Thursday.

The theme of this year’s conference was “Connecting the Future of Finance,” with discussion that focused on the digital transformations shaping the industry.

Experts in attendance said China is at the forefront of adopting certain areas of fintech innovations such as mobile payment.

“I think the estimate is that in the next few years, the domestic mobile payment will already exceed 100 trillion U.S. dollars in the next few years,” said David Chan, managing director and partner of Boston Consulting Group.

Another area of focus is called embedded finance, which integrates financial services directly into non-financial platforms or applications, such as shopping and travel apps.

The approach allows businesses to seamlessly offer services like payments, loans, insurance and investment options within their existing user experiences.

Most of the services leverage insights from collected customer data to provide tailored financial solutions.

“Also leveraging on the data to do better risk management so that they can actually allow more SMEs, more underbanked populations to be able to access funding,” said Chan.

China is also leading in the research and adoption of generative AI, including chatbots that use large language models, or LLMs, to simulate real human communication.

“Even the foundational LLM is at the developing stage, but many of the global banks and insurance companies have been active in adopting use cases which are at the forefront, for example, I think these customer enablement, customer service, call centers,” said Nicole Zhou, senior partner of McKinsey and Company.

However, combining AI with financial services is still at an early stage. Experts suggest for the financial industry to fully harness the power of AI, a deeper shift in the operating models of institutions is necessary, but this is expected to take time.

China’s top legislator Zhao Leji has highlighted the importance of upholding, improving and running China’s foundational political system, the system of people’s congresses, to good effect.

Zhao, a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee and chairman of the National People’s Congress Standing Committee, made the remarks during a research tour in northeast China’s Liaoning Province lasting from Monday to Thursday.

Zhao visited several cities on this tour, including Dandong, Dalian and Shenyang, carrying out extensive research at the offices of the local people’s congress standing committees, while also presiding over symposiums.

During these engagements, he asked local people’s congresses to align their efforts with the specific circumstances of their respective regions to promote economic and social development and reform tasks.

Zhao also took the time to visit legislation outreach and community deputy liaison offices, enterprises, villages and rural households. During these visits, he engaged in profound exchanges with both deputies to the people’s congresses and local residents.

In the course of such interactions, he pointed out that people’s congresses should consciously practice whole-process people’s democracy, establish sound mechanisms for gathering public opinion and wisdom, and ensure the effective performance of deputies’ responsibilities in accordance with the law.