KPMG China’s latest report on the Chinese fintech sector points to the dominance of younger companies established less than a decade ago as well as those focused on big data.
KPMG China recently released the third edition of its “China Leading 50 Fintech Enterprises Report” (毕马威中国领先金融科技50企业报告（第三届）) at a ceremony held in Beijing.
According to the report China’s fintech sector is already at the international forefront in multiple arenas, driving upgrades to the Chinese financial sector and improving its ability to service the real economy.
“Looking back at this year’s selections, we notice that a new wave of fintech innovation embodied by smart finance has already commenced in China,” said Tao Kuangchun, KPMG’s Asia-Pacific chair.
“Following several years of ongoing promotion, the concept of using big data and smart models to drive financial productivity has already deeply entered people’s minds.
“Various enterprises participating in the financial sector are actively investing their efforts into the development, application and upgrade of leading smart technologies. “
The report indicates that the majority of China’s 50 leading listed and private fintech companies are fledgling enterprises established less than a decade ago.
Only 10% have valuations of 20 billion yuan or more, while 50% of the companies are valued at less than 3 billion yuan.
22 companies are specialists in big data and smart finance, while 8 focus on lending and consumer and on-site finance.
8 companies are “comprehensive fintech” concerns, while for 6 the focus is on payments technology, and for another 6 the core concern is wealth management and capital markets.
5 of China’s top fintech companies are insurtech concerns, while only 2 are blockchain focused.
20 of China’s top fintech companies are headquartered in Shanghai, 18 in Beijing, and 13 in the Guangdong province cities of Guangzhou and Shenzhen.
The Zhejiang province capital of Hangzhou is host to 3 of China’s leading fintech companies, while Suzhou, Changsha and Chongqing are home to one a piece.
Tao Kuangchun said that Chinese financial institutions are using a range of methods to pursue fintech innovation, including the establishment of specialist innovation funds, strategic cooperation with tech companies, and the founding of fintech subsidiaries.