Chinese Central Bank Flags Launch of New Fintech Development Plan

A senior official from the Chinese central bank has outlined plans to release a new fintech development plan as part of efforts to guide the steady development of the sector.

Fan Yifei (范一飞), deputy-governor of the People’s Bank of China (PBOC), said that the monetary authority would unveil “a fintech development plan for a new era on the foundation of the previous period of work, to guide the stable development of fintech by the financial sector and accelerate digital transformation.”

The PBOC deputy-governor made the remarks on 10 September at the 2021 China (Beijing) Digital Finance Forum (2021中国（北京）数字金融论坛).

Fan highlighted the emergence of a “new path” for fintech development covering five areas including:

1. Deeply uncovering the value of data, and stimulating endogenous drivers for transformation and upgrade. “Financial institutions must focus heavily on data work, fully unleash their data potential, and ignite the ‘data engine’ for financial digital transformation.”
2. Arranging digital infrastructure development, and consolidating the foundations for digital financial development. “We must endeavour to create scientific, secure and reliable digital infrastructure in the three areas of increasing the efficiency of data centres, expanding the capacity of computing systems, and speeding up communications networks.”
3. Research and development of digital currencies, raising the level of inclusive financial services. “The digital renminbi is a major part of financial supply-side structural reforms, and is of benefit to driving the digital transformation of lifestyle and production methods.”
4. Developing digital loans, deeply emphasising the servicing of the real economy. “Digital lending can achieve reductions in costs and increases in efficiency. It is necessary to use digital technology to drive the smart transformation of loan reviews and lending processes.”
5. Overcoming digital divides, aiding the establishment of a common prosperity environment. “Fintech is a key method for overcoming digital divides and resolving the problems of development being imbalanced and unequal. With regard to alleviating the divide in urban-rural digital development, we can comprehensively implement demonstration projects for fintech to stimulate rural village revival, and assist in the modernisation of agricultural industry.”