FInTech solutions to be incorporated by Chinese banks
According to International Data Corporation (IDC), an international market intelligence firm, as much as 80% of the Chinese banks will adopt FinTech solutions from the cloud-based market. The Chinese FinTech sector has rapidly adopted a wide range of information technologies such as artificial intelligence, big data, cloud computing, mobile solutions and the Internet of Things (IoT) – based applications.
It was reported that China’s IT spending is expected to rise to a significantly high value of 220.8 billion yuan (approximately $31.6 billion) by the end of the year. IDC’s report further stated that 20% of the manual bank transactions will be digitized and the physical banking experience will be replaced by the digital experience.
Furthermore, around 30% of Chinese insurance providers will collaborate with at least three (Insurtech) insurance technology firms by 2021. To increase the efficiency of the claim settlement process, 35% of insurance companies will adopt AI-based technology by 2022. Around 40 traditional Chinese banks will integrate cloud-based technologies and infrastructure by 2022 to work with industry challengers.
Ant Financial, the country’s largest FinTech firm, revealed it was collaborating with numerous banks to revive its plans for introducing an initial public offering (IPO). The process was however postponed due to regulatory issues and concerns regarding its capability to make profits. Ant Financial is probably one of the world’s largest FinTech companies due to its valuation of around $150 billion in 2018.