Big Data and Online Finance Report Highlights Standardisation, Cooperation and Openness as Key Trends for China

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A new report on big data and online finance from one of China’s leading fintech research bodies highlights a trio of key sector-wide trends.

The China Center for Internet Economy Research (中国互联网经济研究院) at the Central University of Finance and Economics recently released its “Internet Finance Innovation Blue Paper: Chinese Internet Finance Innovation and Management Development Report (2019)” (互联网金融创新蓝皮书:中国互联网金融创新与治理发展报告(2019)).

The report outlines three major development trends for the big data and internet finance sectors in China including:

Greater standardisation of data management

The Report points out that in May 2018 the China Banking and Insurance Regulatory Commission (CBIRC) released the “Banking Sector Financial Institution Data Management Guidelines” (银行业金融机构数据治理指引), which called for banking sector financial institutions and internet financial enterprises to further strengthen data management.

The Guidelines point in particular to raising data quality, strengthening data applications, increasing data value, and strengthening regulation by authorities.

The Guidelines also require that data management abide by the principle of “full coverage,” referring to coverage of the full lifecycle of data at a given institution.

Further strengthening of cooperation

The Report said that the development of big data requires the strengthening of cooperation between different institutions, the integration of personal, enterprise and government data, and the conversion of private big data into public big data.

Domestic financial institutions are highly dependent upon data for growth . Consequently the Report foresees the ongoing integration of data from the online finance sector and other industries, with financial institutions obtaining richer data sources from areas including telecommunications, e-commerce, health, travel and education.

The Report also highlights a trend of greater cooperation between Chinese financial institutions and overseas companies, by means including laboratories, joint-ventures and mergers and acquisitions.

Increasing openness and development of ecosystems

The Report point out that both internet finance companies and commercial banks in China are all taking active steps to develop and integrate into “ecosystem circles,” providing a space where open financial products and services can flourish.

Shanghai Pudong Development Bank has taken the lead in launching an “API Bank” model, permitting cooperative partners to better access its products and services.

SPD Bank has already released over 180 API services, with its “ecosystem cooperative partners’ including Ant Finacnial, Ctrip and China UnionPay.

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