The northern Chinese province of Shaanxi has just announced the first innovation project for its fintech regulatory sandbox scheme.
The Shaanxi province government recently announced that the debut project for its fintech sandbox would be a blockchain-based system to help drive the collateralisation of loans using contract management rights for land in rural villages.
The project is being jointly undertaken by the Shaanxi Rural Credit Union Society (陕西省农信联社) and the Shaanxi Yangling Rural Commercial Bank (陕西杨凌农商银行), and focuses in particular upon the use of both the blockchain and big data to increase the accessibility of financial services in rural villages, by permitting the use of contract management rights for land as collateral.
The project makes use of Shaanxi Rural Credit’s existing platform for using land contract management rights as collateral for loans, in tandem with big data for the development risk identification models.
Shaanxi is one of more than a dozen provinces and municipalities in China to have launched fintech regulatory sandbox schemes, as part of efforts to first trial innovative fintech applications in a contained environment before rolling them out in the broader marketplace.
Shaanxi province officials said that the fintech sandbox would help it to thoroughly test and improve fintech innovations that possess real value prior to launch.