2015年CRI Internet Finance to Make a Difference in China's Finance Development

 

Technology revolution and big data have helped online businesses boom in China.

With Tencent's third party mobile payment service being well received, and with Alipay going viral, more and more online businesses have entered the financial world, offering services such as peer-to-peer lending, crowdfunding, microfinance, and wealth management for small- and-micro businesses.

Wu Xiaoqiu, head of the Finance and Securities Institute of Renmin University of China, says Internet finance is currently playing a complementary role in the finance sector¹, helping² the country's traditional financial services transformed to an inclusive mode.

"Internet finance is available to customers that traditional finance missed. Traditional finance used to serve big businesses and rich people, ignoring small and micro businesses. If a financial system just provides service to a specific population, then I don't think it is an efficient system. Therefore, Internet finance has transformed traditional finance to an inclusive finance system."

Speaking at a forum³ at the Second World Internet Conference, he adds that the development of mobile Internet can make finance services cheaper, while big data can assist risk control.

According to the "2015 Annual Report on China's Internet Finance Development," third party mobile payment services quadrupled in size last year compared with 2013 to nearly six trillion yuan, while P2P lending has grown rapidly.

Xu Ming, Deputy President of Postal⁴ Savings⁵ Bank of China, says Internet finance provides an opportunity for the innovation of business models and transformation⁶ of banking⁷ services.

"Internet finance means more opportunities than challenges to traditional commercial banks because it brings inspiration to us. Traditional banks need to be transformed to improve service levels and capabilities⁸. They also need to learn from Internet finance, which has a great advantage in customer experience, client coverage⁹, and the application of big data."

At the same time, since internet finance is still rather new in China, regulation systems are facing challenges adjusting to the finance industry's development.

Dong Dengxin, Head of the Financial and Security Research Institute, Wuhan University of Science and Technology, says only innovation and supervision¹⁰ can promote the healthy development of Internet finance.

"Innovation expands the supervision, making up loopholes in supervision. Many countries encourage innovation because only innovation can promote the development of supervision. Internet finance is a new industry and regulators don't have enough knowledge about it. Therefore they should give it mild tolerance¹¹ and moderate space for innovation."

According to Guo Qingping, vice-governor of the People's Bank of China, three pairs of relationships need to be taken care of for the Internet finance sector to further develop in the country.

One is the relationship between Internet finance and traditional finance. The second is to properly deal with innovation and risk control. And the third is the relationship between the government and the market. 

For CRI, I'm Niu Honglin.

1 sector   

n.部门，部分；防御地段，防区；扇形

参考例句：

• The export sector will aid the economic recovery. 出口产业将促进经济复苏。
• The enemy have attacked the British sector.敌人已进攻英国防区。

2 helping   

n.食物的一份&adj.帮助人的，辅助的

参考例句：

• The poor children regularly pony up for a second helping of my hamburger. 那些可怜的孩子们总是要求我把我的汉堡包再给他们一份。
• By doing this, they may at times be helping to restore competition. 这样一来, 他在某些时候,有助于竞争的加强。

3 forum   

n.论坛，讨论会

参考例句：

• They're holding a forum on new ways of teaching history.他们正在举行历史教学讨论会。
• The organisation would provide a forum where problems could be discussed.这个组织将提供一个可以讨论问题的平台。

4 postal   

adj.邮政的，邮局的

参考例句：

• A postal network now covers the whole country.邮路遍及全国。
• Remember to use postal code.勿忘使用邮政编码。

5 savings   

n.存款，储蓄

参考例句：

• I can't afford the vacation,for it would eat up my savings.我度不起假，那样会把我的积蓄用光的。
• By this time he had used up all his savings.到这时，他的存款已全部用完。

6 transformation   

n.变化；改造；转变

参考例句：

• Going to college brought about a dramatic transformation in her outlook.上大学使她的观念发生了巨大的变化。
• He was struggling to make the transformation from single man to responsible husband.他正在努力使自己由单身汉变为可靠的丈夫。

7 banking   

n.银行业，银行学，金融业

参考例句：

• John is launching his son on a career in banking.约翰打算让儿子在银行界谋一个新职位。
• He possesses an extensive knowledge of banking.他具有广博的银行业务知识。

8 capabilities   

n.能力( capability的名词复数 )；可能；容量；[复数]潜在能力

参考例句：

• He was somewhat pompous and had a high opinion of his own capabilities. 他有点自大，自视甚高。 来自辞典例句
• Some programmers use tabs to break complex product capabilities into smaller chunks. 一些程序员认为，标签可以将复杂的功能分为每个窗格一组简单的功能。 来自About Face 3交互设计精髓

9 coverage   

n.报导，保险范围，保险额，范围，覆盖

参考例句：

• There's little coverage of foreign news in the newspaper.报纸上几乎没有国外新闻报道。
• This is an insurance policy with extensive coverage.这是一项承保范围广泛的保险。

10 supervision   

n.监督，管理

参考例句：

• The work was done under my supervision.这项工作是在我的监督之下完成的。
• The old man's will was executed under the personal supervision of the lawyer.老人的遗嘱是在律师的亲自监督下执行的。

11 tolerance   

n.宽容；容忍，忍受；耐药力；公差

参考例句：

• Tolerance is one of his strengths.宽容是他的一个优点。
• Human beings have limited tolerance of noise.人类对噪音的忍耐力有限。