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1、2022 China Fintech 50 ReportKPMG China information contained herein is the English translation of 2022畢馬威中國金融科技企業雙50報告.Should there be any inconsistency between Chinese and English version,the Chinese version shall prevail.ContentsOverviewAppendix I:Summary of Fintech-related Laws and RegulationsApp

2、endix II:Profile of the Selection Expert CommitteeAppendix III:KPMG Chinas Fintech TeamKPMG China Fintech Series ReportsAbout KPMG ChinaAbout Us06-21Trends and Prospects22-4748-5354-57Appendix 2023 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liabili

3、ty company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.ForewordChairman

4、,KPMG China and Asia PacificHonsonTo2022 was a crucial year that marked the beginning of the Fintech Development Plan(2022-2025),as well as a period in which the country transitioned from strengthening the pillars and framework of fintech towards harnessing the sectors growth momentum.To support the

5、 long-term,stable development of the fintech sector,in 2022,financial institutions fully engaged in digital transformation and more effectively applied innovative financial information technologies,and they also played a role in improving the top-level system and developing a system for fintech ethi

6、cs and prudent regulation.In this critical moment for fintech development,KPMG China is announcing the 2022 China Leading Fintech 50 and Emerging 50 lists,which showcase a range of well-developed and technologically savvy enterprises.2023 marks the seventh consecutive year in which KPMG has publishe

7、d the China Fintech 50,which started in 2016,and we are as excited as ever to be participating in the fintech market and witnessing its phenomenal changes and milestones.We are confident that the fintech sector is becoming more open,innovative and sustainable while keeping risks well under control.V

8、ice Chairman and Senior Partner,Northern Region,KPMG ChinaJacky ZouThe core ABCD technologies(AI,blockchain,cloud computing and big data)are steadily maturing,and emerging technologies such as virtual reality(VR)are booming.These technologies are driving development,empowering financial data centres

9、 and computing power centres,and opening up comprehensive financial scenarios.In the midst of their digital transformations,financial institutions are harnessing the power of financial technologies to cover and integrate diversified scenarios and customer groups.Through a model that combines technol

10、ogy,finance and industry,enterprises are fusing the digital economy with the real economy to expand the scale and reach of innovative financial services.In recent years,innovative fintech enterprises that leveraged advanced core technologies have gained an edge,and they are now well-positioned to us

11、e their comprehensive technological solutions and fintech capabilities to help traditional financial institutions make breakthroughs in the integration of the digital economy and real economy.2023 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liabilit

12、y company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Vice Chairman,Hea

13、d of Financial Services,KPMG ChinaTony CheungAs the digital economy permeates every aspect of our lives,financial sector enterprises are asking themselves how fintech can be used to better serve the real economy and promote digital transformation.Going forward,fintech enterprises will continue to pr

14、ovide clients with all-inclusive support throughout the industrial chain and corporate life cycle,covering all business processes and data dimensions.Recently,we have seen huge leaps in technological progress.Artificial intelligence(AI)algorithms and data intelligence are becoming more accessible;in

15、novative security technologies such as privacy computing have made significant progress;and computing power solutions such as hardware acceleration have continued to unlock gigantic computing power.Against this backdrop,demand is surging across a range of key scenarios,including financial IT innovat

16、ion,green finance,supply chain finance,financial regulation and e-CNY.The future is bright for the quality development of the financial sector,but it is crucial that this development take place in a secure manner.As the top-level system improves,and technologies and finance become more closely integ

17、rated,the fintech sector should focus on both innovation and risk control,as well as institutional regulation and self-discipline,in order to meet the industrys need for both financial development and financial security.Head of Financial Services Assurance,KPMG ChinaThomas ChanAs Chinas fintech sect

18、or continues to evolve,it is empowering financial institutions to achieve high-quality digital transformation.In our visits to fintech enterprises,we saw the financial sector serving the real economy in various scenarios,and we found that new trends around business logic,business models and industry

19、 ecosystems are deepening the integration of technologies.As a result,fintech is being more precisely positioned,and the roadmap for its implementation is becoming clearer.In the field of green finance,financial institutions face difficulties in capturing green data and identifying,certifying and la

20、belling green assets.In this context,technologies such as big data and blockchain provide the answer by ensuring the traceability and immutability of underlying green data.Meanwhile,demand for supply chain finance services has been growing,and end-to-end data penetration is a major development direc

21、tion for technologies in this sub-sector.In the paytech field,cross-border payment has opened up new markets as smart contracts and cross-border payments are expected to expand opportunities for the use of e-CNY.Leveraging their technological expertise and insight into the financial sectors transfor

22、mation,a number of leading fintech enterprises are playing an active role in Chinas financial modernisation.Overview72022 China Fintech 50 Report 2023 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR

23、)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 China Leading Fintech 50 and Emerging 50Composition of the

24、 Selection CommitteeThe Selection Committee comprises a number of external experts,along with dozens of KPMG representatives from China and the global firm.These individuals are specialists in various fields,including information technology,data,capital markets,venture capital,risk management,financ

25、e,macroeconomics and financial services.IntroductionKPMG endeavours to promote the sustainable development of Chinas fintech sector.KPMG launched the first China Leading Fintech 50 list in 2016,which was widely recognised,and since then KPMG has released the China Leading Fintech 50 list and report

26、every year.Core Selection CriteriaThe five core dimensions of the KPMG China Fintech 50 selection process are as follows:Capital Market RecognitionTechnology and DataDevelopment ProspectsPopularisation of Financial ServicesInnovation and TransformationSelection dimensionsKPMG has independently devel

27、oped the Startup Insights Platform(SIP)Model,which takes into account the above-mentioned core areas to quantitatively evaluate enterprises across multiple dimensions,including collaboration,technology,product,market and financing.Note:The selection of the Leading Fintech 50 and Emerging 50 is desig

28、ned to draw attention to technologicalinnovation in the financial sector,promote industry exchanges,and advance the development of fintech.It doesnot evaluate the compliance or investability of the participating companies,nor does it interpret any regulatorypolicies.Technology and DataInnovation and

29、 TransformationPopularisation of Financial ServicesCapital Market RecognitionIndustry Development Prospects 2023 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)

30、partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 China Fintech 50 Report8Segment distribution for the Leading Fintech 50 Integrated Fintech Wealt

31、htechInsurtechInclusive Technology Supply Chain TechnologyPaytechRegtechIntegrated technology empowermentBig data&AIBlockchain,privacy computing and security Distributed computing,cloud computing and hardware accelerationPlatform Technology Empowerment92022 China Fintech 50 Report 2023 KPMG Huazhen

32、LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Li

33、mited,a private English company limited by guarantee.All rights reserved.Years in which the enterprise was shortlistedFull name of enterpriseShort name of enterprise2022 China Leading Fintech 50 and Emerging 50 Leading Enterprises List360 DigiTechShanghai Qiyu Information Technology Co.,Ltd.2022/202

34、1/2020/2019Bairong,Inc.Bairong YunchuangTechnology Co.,Ltd.2022/2021/2020/2019/2018/2017/2016AIBANKCITIC AIBank Corporation Limited2022/2021/2020/2019/2018IceKreditIceKredit,Inc.2022/2021/2020/2019/2018/2017/2016Bubi TechnologiesBubi(Beijing)NetworkTechnology Co.,Ltd.2022/2021/2020/2019/2018/2017Dat

35、aGrandDatagrand Information andTechnology(Shanghai)Co.,Ltd.2022/2021/2020Dashu CreditechShenzhen Dashu Creditech Co.,Ltd.2022/2021/2020HUNDSUNHundsunTechnologies Inc.2022/2021/2020TigeroboTigeroboNetwork Technology(Shanghai)Co.,Ltd.2022/2021/2020/2019/2018ArchForceShenzhen ArchForce Financial Techno

36、logy Co.,Ltd.2022/202/2020WeLabWeLab Group2022/2021/2020/2019/2018/2017/2016AHI FintechHuian Jinke(Beijing)Technology Co.,Ltd.2022/2020/2019FOFUNDFofund Co.,Ltd.2022/2021/20202022 China Fintech 50 Report 2023 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limi

37、ted liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.10202

38、2 China Leading Fintech 50 and Emerging 50 Leading Enterprises ListValue OnlineShenzhen Value Online Information Technology Co.,Ltd.2022/2021/2020/2019JFZShenzhen Golden Axe Network Technology Co.,Ltd.2022/2021/2020/2019/2018/2017/2016OneConnectOneConnect FinancialTechnology Co.,Ltd.2022/2021/2020/2

39、019/2018Kingstar FintechShanghai Kingstar Fintech Co.,Ltd.2022/2020KingdomTechnologyShenzhen Kingdom Sci-tech Co.,Ltd.2022/2021KINGSWAREZhuhai Kingsware Infotech Co.,Ltd.2022/2021/2020KafangShanghai Kayang Information System Co.,Ltd.2022/2020KTM TechKaitaiming Technology(Beijing)Co.,Ltd.2022/2021/20

40、20AirwallexAirwallex2022/2021/2020/2019LinklogisLinklogis Inc.2022/2021/2020/2019IdeaComeIdeacome Technology Co.,Ltd.2022/2021/2020/2016Lufax HoldingShanghai Lujiazui International Financial Asset Exchange Co.,Ltd.2022/2021/2020/2019/2018/2017/2016MSXFMashang Consumer FinanceCo.,Ltd.2022/2021/2020/2

41、019/2018/2017/2016Years in which the enterprise was shortlistedFull name of enterpriseShort name of enterprise112022 China Fintech 50 Report 2023 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)part

42、nership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 China Leading Fintech 50 and Emerging 50 Leading Enterprises Li

43、stMioTechMioTech2022/2021/2020/2019/2018NewBankerBeijing Niutoubang Technology&Consulting Co.,Ltd.2022/2021/2020PingAn E-walletPing An e-Wallet e-CommerceCo.,Ltd.2022/2021/2020/2019GLP FinTechGLP Financial Holding(Chongqing)Co.,Ltd.2022/2021/2020Samoyed Cloud Samoyed Cloud Technology Group Holdings

44、Limited2022/2021/2020/2017DCITSDigital China Information Service Company Ltd.2022/2021/2020ShouqianbaShanghai Shouqianba Internet Technology Co.,Ltd.2022/2020ChinaScopeChinaScope(Shanghai)Company2022/2021/2018/2017/2016Sichuan XW BankSichuan XW BankCo.,Ltd.2022/2021/2020/2019Tianchuang CreditTianchu

45、ang Credit Co.,Ltd.2022/2018/2017/2016Datayes!Datayes Inc.2022/2021/2020/2019/2018/2017WanxiangBlockchainShanghai Wanxiang BlockchainInc.2022/2021/2020/2019VBAOBeijing Chinavbao Technology Co.,Ltd.2022/2021Years in which the enterprise was shortlistedFull name of enterpriseShort name of enterprise20

46、22 China Fintech 50 Report 2023 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent membe

47、r firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.122022 China Leading Fintech 50 and Emerging 50 Leading Enterprises ListWeBankWeBank Co.,Ltd.2022/2021/2020/2019/2018/2017/2016XWFintechChengdu XW Fintech Co.,Ltd.2022/2021/2020XYSLX

48、YSL2022/2021/2020/2019/2018Nebular DigitalNanjing Nebular Digital Technology Co.,Ltd.2022/2021/2020/2019/2018SUNRATESunrate Solutions Limited2022/2021/2020/2019/2018China UMSChina UnionPay Merchant Services Co.,Ltd.2022/2021/2020Yingmi FundZhuhai Yingmi Fund Service Co.,Ltd.2022/2021/2020/2019CSCCZh

49、ongqiyunlian(Beijing)Financial Information Service Co.,Ltd.2022/2021CSCIChina Securities Credit Investment Co.,Ltd.2022/2021/2020/2019ZhongAn Online P&C nsuranceZhongAn Online P&C Insurance Co.,Ltd.2022/2021/2020/2019/2018/2017/2016PeerSafeBeijing PeerSafe TechnologyCo.,Ltd.2022/2021/2020/2019Years

50、in which the enterprise was shortlistedFull name of enterpriseShort name of enterprise132022 China Fintech 50 Report 2023 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong

51、Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 China Leading Fintech 50 and Emerging 50 Emerging Enterprises ListBaige OnlineBaigebao(

52、Xiamen)Insurance Brokers2022/2021BangnitouVanguard Investment Advisors(Shanghai)Investment Consultancy Co.,Ltd.2022/2021Bicai GroupBicai Data Technology Group2022/2021Credit-XBeijing Chexiao Technology Co.,Ltd.2022DAOKOU FINTECHBeijing Daokou JinkeTechnology Co.,Ltd.2022/2021/2020Dongan TechnologyZh

53、ejiang Dongan Technology Co.,Ltd.2022/2021InsightOneInsightone Tech Co.,Ltd.2022/2021DowsureDowsure Technology 2022Dooffe TECHJiangsu Duofei Network Technology Co.,Ltd.2022FinogeeksShenzhen Fantai Geek Technology Co.,Ltd.2022SecideaShenzhen Secidea Network Security Technology Co.,Ltd.2022JDHJiandanh

54、ui Information Technology(Guangzhou)Co.,Ltd.2022SinoVoiceBeijing SinoVoice Technology Co.,Ltd.2022Years in which the enterprise was shortlistedFull name of enterpriseShort name of enterprise2022 China Fintech 50 Report 2023 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China

55、)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights

56、 reserved.142022 China Leading Fintech 50 and Emerging 50 Emerging Enterprises ListSequoiaDBGuangzhou Sequoia Software Development Co.,Ltd.2022/2021Kaixin TechnologyKaixin Financial Technology Co.,Ltd.2022/2021/2020KEYIKEShenzhen Keyike Information Technology Co.,Ltd.2022QutkeQutke Technology(Beijin

57、g)Co.,Ltd.2022LeChain CloudShenzhen Xiaobu RunpaoTechnology Co.,Ltd.2022/2021Lewei SichuanSichuan Lewei Technology Co.,Ltd.2022LICAIMOFANGBeijing Koudai CaifuInformation Technology Ltd.2022/2021/2020FintopiaFintopia Group2022Ling Shu TechNengLian Tech Ltd.2022/2021Magic EngineMagic Engine2022ZechFin

58、Shenzhen Qianhai ZejinInternet Financial Services Co.,Ltd.2022Qinjia TechnologyQinjia Network Technology(Beijing)Co.,Ltd.2022HyperchainHangzhou HyperchainTechnology Co.,Ltd.2022/2020Years in which the enterprise was shortlistedFull name of enterpriseShort name of enterprise152022 China Fintech 50 Re

59、port 2023 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated wit

60、h KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 China Leading Fintech 50 and Emerging 50 Emerging Enterprises ListRxhuiBeijing Ronghui JinxinInformation Technology Co.,Ltd.2022RealAIBeijing RealAI Intelligent Technology Co.,Ltd.2022Sanyue Technolo

61、gyBeijing Youpin SanyueTechnology Development Co.,Ltd.2022CoralGlobalHangzhou Mumin Network Technology Co.,Ltd.2022Shenghe TechnologyShanghai Sohertz ZhiyuanTechnology Group Co.,Ltd.2022Shengli TechnologyShengli Anyuan Technology(Hangzhou)Co.,Ltd.2022DC Public ServiceShujin Public Service(Qingdao)Co

62、.,Ltd.2022/2021TDFTTiandao Fintech Co.,Ltd.2022/2021/2020Tianjin KinchengBankKincheng Bank of Tianjin Co.,Ltd.2022TTDSichuan Totodi Technology Co.,Ltd.2022/2021WisewebWise Web Technology Group Co.,Ltd.2022Weiyan TechShenzhen Weiyan TechnologyCo.,Ltd.2022/2021/2020XUNCETECHShenzhen Xunce Technology L

63、imited2022/2021/2020Years in which the enterprise was shortlistedFull name of enterpriseShort name of enterprise2022 China Fintech 50 Report 2023 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)part

64、nership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.162022 China Leading Fintech 50 and Emerging 50 Emerging Enterprises

65、 ListAsiaInfo SecurityAsiaInfo Security Technologies Co.,Ltd.2022EyecoolBeijing Eyecool Technology Co.,Ltd.2022EasyTransferBeijing Easy Transfer Commercial Service Co.,Ltd.2022Yinzhe TechnologyYinzhe Technology(Guangzhou)Co.,Ltd.2022Yuanbao TechnologyBeijing Yuanbao Technology Co.,Ltd.2022/2021SME C

66、REDITZhejiang Zhelixin Credit Investigation Co.,Ltd.2022/2021Knowledge-VisionChengdu Knowledge Vision Technology Co.,Ltd.2022/2021ZIGGURATXian Zhigui Internet Technology Co.,Ltd.2022HashSTACSChengdu HashSTACSTechnology Co.,Ltd.2022/2021Smart Star ChainZhihui Xinglian(Xiamen)Digital Technology Co.,Lt

67、d.2022BOC FINTECHBank of China Financial Technology Co.,Ltd.2022Years in which the enterprise was shortlistedFull name of enterpriseShort name of enterprise172022 China Fintech 50 Report 2023 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability com

68、pany in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.OverviewIn terms of th

69、e selected companies expertise areas,Platform Technology Empowerment and Wealthtech enterprises ranked first and second in 2022,which were the same rankings we saw in 2021.They accounted for 31 percent and 16 percent of the selected companies respectively.On the heels of these categories,Inclusive T

70、echnology came in third,accounting for 13 percent of the selected companies.Finally,Supply Chain Technology,Insurtech,Paytech,Integrated Fintech and Regtech ranked fourth to eighth respectively.In order to highlight the technology-based nature of fintech development,in 2022,we again divided the Plat

71、form Technology Empowerment segment into four sub-segments:Integrated Technology Empowerment;Big Data and AI;Blockchain,Privacy Computing and Security;and Distributed Computing,Cloud Computing and Hardware Acceleration.Within the Platform Technology Empowerment segment,the sub-segments of Big Data a

72、nd AI;and Blockchain,Privacy Computing and Security ranked first and second,which were the same rankings as in 2021.They accounted for 11 percent and 10 percent of the selected companies respectively.Once again,the rankings continue to highlight the role of big data,AI and blockchain as leading infr

73、astructure technologies.01Distribution of expertise areas:Platform Technology Empowerment,Wealthtechand Inclusive Technology were the top three categories,highlighting the role of big data,AI and blockchain as leading infrastructure technologies4889111316711103RegtechIntegratedFintechPaytechInsurtec

74、hSupply ChainTechnologyInclusiveTechnologyWealthtechPlatformTechnologIntegrated technology empowerment31Distribution of expertise areasSource:KPMG analysis 2023 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a

75、 Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 China Fintech 50 Report18OverviewSimilar to 2021

76、,Beijing,Shanghai and Shenzhen are home to most of the selected companies,accounting for 29 percent,24 percent and 19 percent of the selected companies respectively.Two more companies from Beijing were selected this year compared to last year.In a notable difference from 2021,the selected companies

77、in 2022 were more widely distributed.Enterprises in Xiamen,Zhuhai,Tianjin and Qingdao were also shortlisted,in addition to those from emerging fintech cities like Hangzhou,Chengdu,Nanjing and Guangzhou.This change reflects the transition China is making from reinforcing the pillars and framework of

78、fintech towards harnessing growth momentum across the country.Geographically,almost all enterprises are located in the top five city clusters earmarked for prioritised development in the 14th Five-Year Plan.Overall,89 percent of the selected companies are located in the Yangtze River Delta,Guangdong

79、-Hong Kong-Macau Greater Bay Area,and Beijing-Tianjin-Hebei city clusters.02City and regional distribution:Beijing,Shanghai and Shenzhen remain at the top of the list,with the Yangtze River Delta,Guangdong-Hong Kong-Macao and Beijing-Tianjin-Hebei regions demonstrating a strong clustering effectIndi

80、vidual CitiesUrban Clusters35302483Yangtze River DeltaBeijing-Tianjin-HebeiGuangdong-Hong Kong-MacaoChengdu-ChongqingOthers292419873322111BeijingShanghaiShenzhenHangzhouChengduGuangzhouNanjingXiamenZhuhaiQingdaoSource:KPMG analysisSource:KPMG analysis192022 China Fintech 50 Report 2023 KPMG Huazhen

81、LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Li

82、mited,a private English company limited by guarantee.All rights reserved.Overview76%68%41%34%33%33%29%11%10%10%9%8%1%1%0%20%40%60%80%The ABCD technologies are still the core financial technologies.In 2022,the percentage of companies that cited knowledge graphs as a core technology rose to 34 percent

83、,overtaking blockchain for the 4th place spot for the first time,followed by both deep learning and blockchain at 33 percent,tied for 5th place.These changes show that while fintech enterprises are still based on the ABCD technologies,they are actively exploring other capabilities in their quest to

84、more deeply integrate technologies and financial scenarios.The potential of the metaverse has been gaining recognition as companies in this space continue to make progress in basic research,technological innovation and scenario development.Meanwhile,fintech enterprises have also begun actively deplo

85、ying technologies such as VR and edge computing.03Distribution of core technologies:The core ABCD technologies are steadily maturing,and emerging technologies such as VR are boomingDistribution of core technologiesSource:KPMG analysis 2023 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPM

86、G Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guar

87、antee.All rights reserved.2022 China Fintech 50 Report20OverviewPercentage of technical personnel has become a key indicator for measuring the innovative capability of a fintech enterprise,and the number of selected enterprises that employed more than 60 percent fintech personnel grew in 2022.Specif

88、ically,half of the selected enterprises in 2022 had more than 60 percent technical personnel,underlining the trend of technology-driven fintech development.0%4%12%66%18%5%5%17%62%11%0%10%20%30%40%50%60%70%Less than 2 years2-3 years3-5 years5-10 yearsMore than 10 years20222021Proportion of technical

89、personnel5%24%20%50%3%15%33%49%4%10%37%49%3%12%37%47%0%10%20%30%40%50%60%60%202220212020201904Proportion of technical personnel:Half of the selected enterprises had more than 60 percent fintech personnel05Distribution of years since establishment:Over 80 percent of the selected enterprises have been

90、 established for more than 5 years,showing that mature enterprises are being rewarded for their years of hard workAfter years of development,many leading fintech enterprises have positioned themselves as intermediaries serving both the financial sector and the real economy.In terms of years since es

91、tablishment,84 percent of the selected enterprises have been established for more than 5 years,and 18 percent have been established for more than a decade.These figures increased by 11 and 7 percentage points respectively compared with 2021.Distribution of years since establishmentSource:KPMG analys

92、isSource:KPMG analysis 2023 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member fi

93、rms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 China Fintech 50 Report21Trends and Prospects232022 China Fintech 50 Report 2023 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liabi

94、lity company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2023 Fintech T

95、rendsLaying a solid institutional foundation for the long-term,stable development of the sectorSince the end of 2021,a number of policies have been introduced for the fintech sector,including the Fintech Development Plan(2022-2025)(the“Plan”),the Guiding Opinions on the Digital Transformation of the

96、 Banking and Insurance Industries,and the 14th Five-Year Plan for the Technological Development of the Securities and Futures Industries.These policies reflect on the results that have been achieved over the last five years in reinforcing the foundation and framework of fintech,while also serving as

97、 a rallying call for the market to embark on a new stage of fintech development.As suggested in the Plan,technology-empowered financial resources should be precisely allocated to key areas and weaker aspects of economic and social development,so that the financial sector can better serve the real ec

98、onomy.Digitalised,fintech-based financial infrastructure is an indispensable part of“new infrastructure”;and the stronger it is,the smoother and more efficient the financial system runs as a whole and the more reasonable financial resources are allocated.The new information technologies,particularly

99、 the ABCD technologies,have been proven effective after years of trials and testing.The stable development of mature technologies is empowering financial data centres and computing power centres and opening up comprehensive financial scenarios.In general,technology is causing the financial sector to

100、 shift from“model innovation”towards“technological innovation,”while also laying a solid foundation for financial infrastructure.Financial enterprises are becoming more open and responsive as they pursue their digital transformations,but risks in business,technology,data,networks and other areas are

101、 emerging alongside these changes.Digitalisation is accelerating the upgrading of financial products and services,but it is also resulting in new financial risks that pose challenges to traditional regulatory policies and tools.In 2022,China introduced a number of high-level financial and data regul

102、ations to lay a more robust institutional foundation for the financial system.Specifically,in October,the Peoples Bank of China issued the Guidelines for Science and Technology Ethics in the Financial Sector,which provides policy guidance in response to ethical issues related to the digital divide,t

103、echnological exclusion,algorithmic discrimination,privacy violations and other challenges.In December,the State Council issued the Opinions on Establishing an Institutional Foundation to Better Maximise the Role of Data Elements(the“20 Data Measures”),which is the first issuance to describe the basi

104、c rules for data and specify principles and guidelines for handling data property rights,data circulation,data transactions,data use,data distribution,data governance and data security.Data is widely circulated in the financial sector,and the 20 Data Measures clearly specify how data property rights

105、,data circulation,data transactions,and income distribution should be handled.Institutions are just as important as technology when it comes to forming a solid foundation for the long-term development of the fintech sector,especially in view of the dual role played by institutions as both a motivato

106、r and constraint.In recent years,the development of legal frameworks,regulations,industry standards and self-disciplinary rules have accelerated the formation of a multi-layered system of fintech rules and regulations.2023 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)

107、Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights

108、reserved.2022 China Fintech 50 Report242023 Fintech Segment TrendsIntegrated Fintech SegmentAs an important tool for fusing the digital economy and real economy,integrated technologies are being used to access diversified scenarios and customer groups and drive digital transformationUsing integrated

109、 technologies to target diversified scenarios and customer groupsThe report to the 20th National Congress of the Communist Party of China stresses the development of the digital economy as the key to a modern industrial system and high-quality development.The report envisions a future in which China

110、 will“accelerate the development of the digital economy,integrate the digital economy with the real economy,and build internationally competitive digital industry clusters.”Finance is the lifeblood of the economy.Going forward,enterprises need to determine how to develop fintech so that it can be us

111、ed to integrate the digital economy and the real economy and empower the transformation of traditional industries.After years of rapid fintech development,many technologically innovative financial enterprises are operating in the marketplace.These enterprises know how to leverage their technological

112、 advantages and financial expertise to access financial scenarios and target customer groups,and they are lending their fintech capabilities to traditional financial institutions to empower their digital transformations.In this way,they are helping integrate the digital economy and real economy and

113、fulfilling their mission to serve the real economy.In the past,technologies were usually applied in single scenarios or at a single point.Today,fintech enterprises are applying packages of technologies to address complex and diversified scenarios and help financial institutions scale challenges duri

114、ng their digital transformations.After years of trials and testing,core technologies such as big data and AI are stable and mature,and they are serving as the launch point for enterprises to access diversified financial scenarios.Currently,multiple pain points exist in green finance.For example,fina

115、ncial institutions face challenges in capturing front-end green data;identifying,certifying and labelling green assets;exercising risk control over green assets;and disclosing environmental information.Fortunately,fintech provides an effective solution to these challenges.For instance,enterprises ca

116、n use technologies such as big data to address difficulties in handling data and information,and blockchain technology can be used to ensure that the underlying green data of assets is traceable and immutable.252022 China Fintech 50 Report 2023 KPMG Huazhen LLP,a Peoples Republic of China partnershi

117、p,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by

118、 guarantee.All rights reserved.2023 Fintech Segment TrendsLeveraging fintech capabilities to support the digital transformation of industriesIn recent years,opportunities in terms of new customer groups have been emerging from the development of the silver economy and pension fund financing as China

119、s population ages.Fintech not only plays a role in empowering the silver economy and pension fund financing,but also in ensuring that“long tail”customers such as the elderly are included in a digitalised community.Mitigating the“digital divide”is an issue that is drawing the attention of both policy

120、 makers and market participants.Currently,fintech enterprises are designing elderly-oriented electronics and software,including senior-friendly mobile banking capabilities,in an effort to tap this market.In addition,infrastructure that supports the digital economy,including 5G,AI,and mobile Internet

121、,is being improved in rural areas,and the rural financial service system is being strengthened.As a result,rural financial services are becoming increasingly digitalised,and future-oriented financial institutions are precisely identifying target customers in these areas.For example,farmers in China

122、commonly face issues related to the slow-moving nature of agricultural products because they lack information about the relationship between the market and price fluctuations.To address these challenges,financial institutions can provide market forecasts,agricultural product insurance and small loan

123、s to farmers.In this way,financial institutions can serve the“agricultural industry,rural areas and farmers”and add new momentum to rural revitalisation.In recent years,innovative fintech enterprises have leveraged ongoing investment and diversified business scenarios to drive the development of cor

124、e financial technologies,and they are now well-positioned to use their fintech capabilities to support the digital transformation of the traditional financial sector.Small and medium-sized financial institutions are relatively weak in terms of their technology and risk control capabilities.However,r

125、egulators are urging them to fulfil their responsibilities as loan providers and avoid“credit management without substance.”Against this backdrop,they can now engage third-party fintech service providers to establish smart systems to combat money laundering,manage credit and control risks.Innovative

126、 fintech enterprises are also lending their technological capabilities to other industries.For example,technologies such as Internet of things(IoT),blockchain,and satellite remote sensing are being used in the agricultural industry to capture and intelligently analyse data.Enterprises are also using

127、 the ABCD technologies to empower intelligent education and build“eCampuses.”2023 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of

128、 the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 China Fintech 50 Report262023 Fintech Segment TrendsPlatform technology empowerment segmentLed by the power of technology,syner

129、gies between technology and finance are modernising the financial sector in ChinaAs technology continues to penetrate into core areas of finance,fintech enterprises are endeavouring to meet the needs of customers while also strengthening their core technical capabilities,intensively exploring differ

130、ent application scenarios,accumulating reusable solutions and rapidly expanding their business.As IT innovation moves into the fast lane,these enterprises are expected to harness their integrated technical capabilities to promote the high-quality development of the financial sector.With the deepenin

131、g digital transformation of the industry,technology and finance are becoming increasingly inseparable.As more and more financial institutions shift technology from a“supporting”role to an“empowering”one,a handful of highly capable fintech enterprises with top-notch technical capabilities and service

132、 quality are expected to emerge in the market.They will focus on the new generation of ABCD technologies as their core competence,while also exploring emerging technologies such as quantum computing,digital twins,virtual reality/augmented reality(VR/AR),virtual humans,network connections and biologi

133、cal probes.These leading companies will no longer be satisfied with only deploying simple tools for their customers in the financial sector instead,they will provide comprehensive support across the entire industry chain and enterprise lifecycle,covering all business processes and data dimensions.Th

134、e deep integration of technology scenarios is driving financial IT innovationSub-segment 1:Integrated technology empowerment272022 China Fintech 50 Report 2023 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a

135、Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2023 Fintech Segment TrendsThe technology multiplier e

136、ffect is rapidly expanding the use of scenario-based best practicesWith the development of the digital economy,enterprises are exploring on how to leverage fintech to promote the digital transformation of the financial sector and assist financial institutions in better serving the real economy.As te

137、chnology suppliers continue to strengthen their core technical capabilities,different digital technologies are becoming more deeply integrated,resulting in a robust multiplier effect.The evolution and integration of infrastructure technologies will ultimately expand applications in upper-layer scena

138、rios.In terms of promoting the digital transformation of financial institutions,the distributed transformation of underlying infrastructure has become a major trend.In this area,technology suppliers are focusing on issues such as smooth data migration,security compliance and compatibility adaptation

139、 to ensure that distributed transformation will not affect business continuity.In addition,they are building capability modules that are standardised and componentised to improve the breadth and flexibility of upper-layer applications.From the perspective of empowering financial institutions to serv

140、e the real economy,fintech has given way to the emergence of new business models such as“open banking,”whereby financial services are gradually embedded into different aspects of business and real life scenarios.At the same time,fintech capabilities are also being extended across the entire industry

141、 chain and ecosystem of the financial sector.As a result,demand in key scenarios such as green finance,smart cities and supply chain finance will continue to grow.To uncover business opportunities,fintech enterprises are actively identifying customers pain points and adopting the development strateg

142、y of“focus first,then expand”to cultivate best practices.Under this model,they are focusing on specific scenarios,and then relying on product standardisation to expand their business.Additional cutting-edge technological breakthroughs are neededto lead financial IT innovationThe financial sector has

143、 reached a general consensus on promoting financial IT innovation,which has accelerated breakthroughs on the supply side of technologies.The financial sector is the major area for IT innovation,which is closely linked to the security and control of the countrys overall financial system,and it also p

144、rovides a rich foundation for R&D and the application of cutting-edge technologies.China should increase the use of domestically-made technologies and catch up with international standards,both in terms of basic software and hardware such as operating systems,databases,middleware and hardware accele

145、ration,as well as in emerging technologies such as quantum computing and the metaverse.It is important to note that as IT innovation in the financial sector involves the overall IT architecture,explosive growth is expected to be seen in the demand for items from underlying architecture to cloud comp

146、uting and data storage services,as well as for the replacement and upgrading of core systems and peripheral products.As many players will work together to build the financial sectors IT innovation ecosystem,integrated technology suppliers that focus on leading infrastructure technology and that poss

147、ess core scenario application advantages are expected to lead the construction of the ecosystem and actively promote the innovation and exploration of more cutting-edge technologies.2023 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company

148、in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 China Fintech 50 Repor

149、t282023 Fintech Segment TrendsAt the end of 2022,China issued the 20 Data Measures to emphasise the importance of building a basic system for data that covers data property rights,circulation and transaction of data elements,income distribution and security governance.The 20 Data Measures are design

150、ed to promote data compliance and the efficient circulation and usage of data in order to empower the development of the real economy.Based on the massive scale of the countrys data and rich application scenarios,the Measures aim to fully tap the value of data elements and give the entire population

151、 access to the benefits brought about by the digital economy.In the financial sector,enterprises are rapidly realising the value of data.The sector has accumulated a large number of full-link data resources,enabling enterprises to become pioneers in exploring and improving the basic system for data,

152、and innovating the technological path and development model.Data lifecycle management should be strengthened to make data more usable and user-friendly.Specifically,in the data collection stage,IoT devices and applications should be widely used to collect data in real time across different terminals

153、 in order to effectively break down data silos and accumulate diverse,high-quality data resources.In the data integration stage,the gradual integration of traditional relational databases with data streams and batches,data lakes and warehouses,and overall data governance;the deep integration of AI c

154、apabilities;and the transformation of self-service big data analysis and mining architecture are equipping enterprises with centralised control over structured,semi-structured and unstructured data and enabling them to construct a shared,open database.In the data processing stage,the industry and it

155、s enterprises are steadily clarifying their internal data standards,and technological advancements are being seen in areas such as data extraction,data cleaning,data verification and data conversion.As a result,enterprises are now better equipped to interpret data.Finally,in the data application sta

156、ge,employing a data-driven approach has become a“must”across the industry,which is resulting in improvements in the productivity structure of the digital economy as a whole.From the perspective of the overall industry and the development of the digital economy,unlocking the potential of data element

157、s also means that data circulation and transactions will occur across different levels,industries and regions.In this respect,financial institutions and fintech enterprises need to not only strengthen their enterprise-level data management capabilities,but also continue to cultivate ecosystem-level

158、data management capabilities and promote the mining of data value on a larger scale at a higher level.Strengthening data lifecycle management and exploring thepotential of data elementsActivating the value of data elements to make data intelligence accessible to allSub-segment 2:Big data and AI29202

159、2 China Fintech 50 Report 2023 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member

160、 firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2023 Fintech Segment Trends“Simple,explainable,engineered,secured and trustable”have become the standards for the new generation of AI infrastructureAI algorithms enable data-driven t

161、hinking and decision-making,and provide an effective tool for making good use of data and conquering the“last mile”of data value.It is important to note that in an open source environment,risks are arising from the convergence of algorithms,and approaches that simply leverage a handful of data to tr

162、ain deep learning models are unable to meet competitive demands.As a result,enterprises are increasingly focusing on improving their algorithms accuracy and iteration efficiency in an effort to develop explainable,intervenable and simplified AI decision-making platforms.In addition,they have also st

163、arted to build AI security attack and defencesystems using next-generation AI technologies that are secure,trustworthy and reliable,with the goal of ensuring the stable operation of their algorithms in a confrontational environment.On the one hand,to obtain in-depth insights into the operational pro

164、cesses and pain points of the financial industry,enterprises are fully integrating industry know-how into their algorithmic models to improve the accuracy of their algorithms and data analysis.On the other hand,as data sources improve and data dimensions expand,enterprises are fundamentally improvin

165、g their algorithms quality and iteration efficiency,seizing first-mover advantages,and lowering the threshold for the use of AI algorithms.In this way,they are establishing end-to-end,explainable,traceable and business-oriented AI services that cover the entire process of“data,models,application,opt

166、imisation and governance.”As the quantity,quality and efficiency of AI algorithms improve,the results of intelligent data analysis are expected to shift from mainly supporting business intelligence(BI)scenarios to AI scenarios,giving way to a new generation of AI infrastructure supported by technolo

167、gies such as deep learning,explainable machine learning,AI security attack and defence,and knowledge graphs.2023 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)

168、partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 China Fintech 50 Report302023 Fintech Segment TrendsImproving employees ability to access the va

169、lue of data is essential not only for delivering value based on customer needs but also for transmitting data value to the end users of data in the financial sector and establishing a closed-loop system that promotes data value.Currently,financial institutions are facing issues related to low partic

170、ipation of business staff in data processing and application,and significant numbers of IT professionals are required to both perform technical development tasks and obtain an understanding of the underlying business logic,resulting in a potential misallocation of resources.One of the major solution

171、s to address this issue is to continuously promote data intelligence for everyone in the enterprise,and fully ensure that front-line business staff can conveniently access technical products during actual business operations.By taking these steps,enterprises can reduce their reliance on IT staff,opt

172、imise their human resource structure and raise overall work efficiency.For example,in respect of business operations intelligence,technologies such as low-code platforms and robotic process automation+natural language processing(RPA+NLP)can be used to empower business staff with an end-to-end,user-f

173、riendly,automated operational experience.Meanwhile,in terms of business process intelligence,enterprises are using knowledge maps,data maps,intelligent text processing,biometrics(such as iris recognition,voiceprint recognition and vein recognition)and multi-modal interactive robots to facilitate col

174、laboration between digital staff and operational staff,thereby improving their work efficiency and providing end users with an efficient,intelligent service experience.Delivering value to customers by adopting data-driven business operations intelligence and business process intelligence312022 China

175、 Fintech 50 Report 2023 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms

176、affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2023 Fintech Segment TrendsThe value of data elements is not only reflected in their use value to the enterprise,but also in their exchange value in the marketplace.Therefore,the assetisatio

177、n of data elements is an inevitable aspect of Chinas effort to build a data elements market.“New infrastructure”is the strategic cornerstone and driving force behind the digital economy,and blockchain is an important part of“new infrastructure.”Its core value lies in its ability to enable distribute

178、d trust,which can effectively solve information asymmetry issues between different parties in a financial system,and therefore it enjoys broad application prospects.As China continues to promote the construction of blockchain infrastructure,national projects such as“Xinghuo Space”and the Blockchain-

179、based Service Network(BSN)are paving the way for blockchain technology to be applied across many financial scenarios,which will result in significant advances in the openness,sharing and trading of financial data.One major path for the adoption of blockchain in the financial sector is for relevant p

180、latforms to be established.In this context,the government should direct blockchain construction and standardise its development to enhance consensus among all parties and enable low-cost trust.These conditions will then lead to the emergence of a number of new business models in areas such as green

181、finance,supply chain finance,financial supervision,and digital RMB business.Strengthening blockchain infrastructure,and using blockchain platforms to enable low-cost trustWith the issuance of privacy protection laws and regulations such as the Network Security Law,the Data Security Law,and the Perso

182、nal Information Protection Law,as well as heightening scrutiny from financial regulators,privacy computing has become a“must have”in the financial sector due to it ability to balance data security and data application.In general,privacy computing is still at a single-point application stage covering

183、 two scenarios:risk control and marketing.To allow for large-scale application,enterprises need to improve their privacy computing capabilities,promote the integration and innovation of software and hardware,and strengthen the scalability and supervision of technical architecture.Going forward,priva

184、cy computing is expected to continue to promote the security and circulation of data elements in the financial sector and boost the integration of data ecosystems across departments,industries and regions,ultimately becoming another major fintech infrastructure technology that facilitates the develo

185、pment of the financial sector.In the face of stringent supervision,privacy computing provides the foundation for technical capabilities Promoting assetisation of data elements and building a comprehensive line of defenceSub-segment 3:Blockchain,privacy computing and security 2023 KPMG Huazhen LLP,a

186、Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,

187、a private English company limited by guarantee.All rights reserved.2022 China Fintech 50 Report322023 Fintech Segment TrendsFocusing on the risks of cutting-edge technologies amid prominent security challengesAt present,financial information systems with large-scale infrastructure and a large number

188、 of data nodes are increasingly being developed.The security challenges they are facing are becoming more complex,and mainly come in two types:cyber attacks and technology application risks.In respect of cyber attacks,strengthening risk prevention in the financial system has become a common focus ac

189、ross the sector,and financial information security in particular has become important for the high-quality development of the financial sector,pushing enterprises to introduce technical concepts such as chaos engineering and zero trust architecture,and strengthen multi-dimensional security governanc

190、e capabilities in areas such as information,data and networks.On the other hand,technology application risks are more subtle and uncontrollable,and may include problems such as deficiencies in the cross-chain mutual trust mechanism for blockchain,weaknesses in the performance and accuracy of privacy

191、 computing platforms,and inadequacies in the interpretability of AI models and AI attack-defence technologies.As the financial industry and its regulators direct more attention to the risks of cutting-edge technologies,we expect to see these risks driving more technological innovation in the coming

192、years.332022 China Fintech 50 Report 2023 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of indepen

193、dent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2023 Fintech Segment TrendsComputing power is one of the core productive forces driving the development of the digital economy.As the leading industry in digital transforma

194、tion,the financial sector needs computing power that“continuously evolves.”As advancements in hardware accelerate innovation and breakthroughs in technical solutions,distributed technology and financial cloud computing,efficient,flexible and intelligent computing services are emerging that meet the

195、requirements of different scenarios and enable businesses to reduce costs and increase efficiency.Transaction volumes,data volumes and peak value per second are growing exponentially across financial business scenarios,and the demand for edge computing has exploded while also becoming more complex a

196、nd diverse.Against this backdrop,computing services for the financial sector have entered a critical period of innovation.Traditional computing solutions that use a central processing unit(CPU)as a general-purpose server cannot fully meet the financial sectors needs,and dedicated chips are required

197、to obtain the necessary flexible computing power in certain scenarios.Innovation in the industry is currently trending in the direction of heterogeneous computing,and this technology is mainly being applied in the financial industry to develop hardware acceleration solutions that use field programma

198、ble gate array(FPGA)chips.These chips optimise computing performance,and offer outstanding advantages in processing real-time requests from users and in computing in small quantities and large batches.FPGA chips have been piloted in specific scenarios,such as in the high-speed brokerage market quota

199、tion system and brokerage order system,to improve the efficiency of trading business.With the support of technologies such as high-performance computing and edge computing,the computing power of the financial sector is steadily evolving and growing more diverse.However,the industry still needs to de

200、velop more widely-recognised integrated solutions that meet the needs of enterprises across different scenarios in order to fully tap the value of computing innovation.Edge computing is complex and diverse,and hardware acceleration solutions are breaking performance bottlenecksAdvances in computing

201、power are enabling digital acceleration enginesSub-segment 4:Distributed computing,cloud computing and hardware acceleration 2023 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG

202、,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 China Fintech 50 Report342023 Fintech Segment TrendsCross-level integration of

203、IT infrastructure with hybrid cloud computing is gradually becoming mainstreamOne major way to implement distributed architecture is to move to the cloud.Essentially,cloud computing virtualises resources and breaks down barriers to resource access that were previously posed by time and space.The clo

204、ud efficiently integrates resources at the“cloud,network and terminal”levels in order to meet the need for low latency,high performance and large bandwidth computing.Currently,financial service cloud computing is evolving from private cloud computing to a hybrid model that is formed by“public cloud+

205、private cloud+industry cloud.”Private cloud computing meets the security needs of financial institutions,which must adhere to the principle that“data should not be moved out of the local region,”but its economies of scale are limited.On the other hand,the public cloud and industry cloud are built on

206、 a more open ecosystem.They can help financial institutions to flexibly allocate internal and external resources and speed up cloud migration.Hybrid cloud strikes an optimal balance between the three elements of security,cost,and efficiency.Relatedly,“cloud native”has become an important trend in th

207、e industry.This concept stresses the development of loosely coupled systems that use containers,microservices and other cloud-native technologies to enable seamless connectivity between the private cloud,public cloud and industry cloud,with the aim of supporting more agile and flexible application d

208、evelopment.Distributed architecture stresses multi-node deployment and aligns resources based on actual demand,which greatly optimises the allocation of IT resources.At the national level,the“Eastern Data,Western Computing”(東數西算)initiative,which is now in the construction phase,will promote computin

209、g power connectivity,remote computing and collaborative networks,and provide crucial support for the implementation of distributed computing in many key sectors of the national economy,including the financial sector.Under centralised architecture,single point of failure risk can affect business cont

210、inuity.Distributed architecture possesses a single-point“self-healing”function and can flexibly allocate resources,which helps ensure the financial systems ability to provide continuous and stable services.Going forward,the financial sectors IT architecture will gradually evolve towards an organic i

211、ntegration of the centralised model and distributed model.It is important to note that as computing nodes increase and become more decentralised,the risk of system exposure will also increase,and the industry will need to focus on distributed security protection solutions.Optimising IT resources by

212、moving from centralised architecture to converged distributed architecture352022 China Fintech 50 Report 2023 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)par

213、tnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2023 Fintech Segment Trends1 Development Research Centre of the State Council,Consumption-led Efforts to

214、 Expand and Meet Domestic Demand,September 2022.WealthtechsegmentFintech companies are providing integrated services and helping financial institutions build open and innovative wealth management platformsThe incomes of Chinese residents are still growing fast,providing fertile ground for the develo

215、pment of the wealth management industry.According to a report released by the Development Research Centre of the State Council,middle-income groups as a share of Chinas total population will rise from 30 percent in 2021 to 50 percent in 2030,making them an important part of the wealth management sec

216、tor and providing huge room for the industry to develop1.Fintech companies are expanding from offering underlying technologies to providing integrated service packages to asset management institutionsAs the digital transformation of asset management institutions progresses,fintech enterprises will f

217、ocus on providing comprehensive services for the entire asset management process.At present,fintech companies are using AI,big data,cloud computing and other technologies to provide integrated servicesfrom data production and information extraction to intelligent modelling and investment decision-ma

218、king assistance.In this way,they are providing one-stop digital intelligence products and services to professional institutions such as fund companies,brokerages,banks and trusts.Some companies have even formed complete product and service suites powered by self-developed technology engines to offer

219、 support that covers underlying technologies,middle platforms and applications.On the underlying technology platforms,algorithmic trading execution,advanced algorithmic models and new technologies such as machine learning are used to provide intelligent algorithmic trading services and quantitative

220、trading solutions for wealth management institutions.At the middle platform level,data,algorithm and knowledge platforms are deployed to realise whole-process modeling of“data fusion,data development,knowledge fusion,and knowledge computing,”so as to improve the governance and use of corporate data

221、and knowledge.At the application level,based on the complete technical architecture underpinning the data middle platform,wealth management firms are able to access one-stop platforms that flexibly combine multiple business modules,allowing them to engage in self-defined data value mining and build

222、intelligent applications to more effectively apply corporate data.2023 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG g

223、lobal organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 China Fintech 50 Report362023 Fintech Segment TrendsThe opening up of the wealth management industry is accelerating,resulting in a more o

224、pen and innovative ecosystemBuilding an open ecosystem can help wealth management institutions expand their online operations,service channels,and product and service systems,and improve their user experience.More and more wealth management firms have shifted from the previous“product sales”mindset

225、to a wealth planning service model that covers the entire life cycle of their clients.Under this model,wealth management firms take into account their clients goals and provide richer experiences and services,including inheritance planning,retirement planning,medical planning,and integrated investme

226、nt and financing.In order to meet the diversified financial needs of clients,wealth management institutions have started to integrate internal and external resources to create open,innovative wealth management platforms.Some financial institutions that possess multiple licences have begun to deepen

227、intra-group synergies,for example by breaking down barriers to client information within the group and establishing intra-group client referral mechanisms and other tools.Other firms are taking measures to complement their resources,including in terms of clients,products,technical support and data,t

228、o enhance their clients investment experience and increase their asset management scale.Meanwhile,some financial institutions have opted to integrate their internal group resources and then open up their wealth management platforms to external parties.In this way,they can interact with other institu

229、tions in an open ecosystem to improve their operations.372022 China Fintech 50 Report 2023 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member

230、 firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2023 Fintech Segment Trends2KPMG and NIFA,2022 Insights Reporton Fintech Leaders,September2022.Supply chain technology segm

231、entTechnology is empowering digital supply chain finance Recently,the State Council released the Outline of Strategic Planning for Expanding Domestic Demand(2022-2035)(the“Plan”),which proposes“steadily expanding domestic demand and creating new engines for domestic demand growth,”and“focusing on im

232、proving the efficiency of factor allocation and promoting the innovative development of supply chain finance,information and data,human resources and other services.”Going forward,the growing domestic market will spur demand for supply chain finance services,while technologies including AI,blockchai

233、n,IoT and big data will be used to empower the supply chain.These developments will open up greater room for the growth of supply chain finance.Digital intelligence is empowering the supply chain,and supply chain technology is promoting data penetration The Plan proposes to“speed up the promotion of

234、 digital industrialisation and industrial digitisation,encourage the inclusive use of clouds and digital intelligence,steadily improve digital governance,and strengthen the digital capabilities of small and medium-sized enterprises,especially those in the manufacturing industry.”Industrial digitisat

235、ion provides the basis for the digital upgrading of supply chain finance and will drive the digitisation of modern logistics systems and supply chains.By adopting technology,traditional supply chain finance can move faster towards digitisation and intelligence,and this opportunity presents huge room

236、 for the growth of digital supply chain finance.According to the 2022 Insights Report on Fintech Leaders jointly released by KPMG and the National Internet Finance Association of China(NIFA),fintech companies are most optimistic about the future of digital supply chain finance,with 53 percent of the

237、 respondents selecting this field as a promising one and 23 percent making it their first choice2.2023 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnershi

238、p,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 China Fintech 50 Report382023 Fintech Segment TrendsHowever,the digital transformation of supply chain fin

239、ance still faces challenges around insufficient fintech integration.Research conducted by the China Federation of Logistics and Purchasing shows that enterprises have self-developed over 38 percent of their digital technologies,with only 11.54 percent of enterprises relying on upstream and downstrea

240、m support3.The sectors digitalisation process is uncoordinated,and upstream and downstream enterprises do not cooperate well.For this reason,core enterprises and upstream and downstream enterprises urgently need to strengthen collaboration,so that they can jointly build data platforms,promote data p

241、enetration across the whole supply chain,solve the problems of data silos and information asymmetry,and enable core enterprises credit guarantees to cover first-tier,second-tier and even third-tier suppliers.Going forward,enterprises can harness AI,blockchain,IoT and other digital intelligence techn

242、ologies to open up the supply chain links of research,procurement,production,sales and services;integrate the supply chains commercial flows,product flows,capital flows and information flows;reinforce cooperation between core enterprises and upstream and downstream enterprises;and improve the effici

243、ency of fund usage in the supply chain.These efforts will help cultivate an open ecosystem that promotes the development of all enterprises.3 China Federation of Logistics and Purchasing,China Logistics and Supply Chain Finance Digital Development Report 2022,June 2022.With the help of technology,su

244、pply chain finance services are shifting from traditional loan services to integrated financial servicesThe 20th National Congress of the Communist Party of China proposed“enhancing the resilience and security of industrial and supply chains”and“unswervingly maintaining the security of key industria

245、l and supply chains.”The development of industrial chains requires enterprises to strengthen and expand the chains,which will result in the introduction of more supply chain finance services.Some supply chain enterprises have already started to expand their business from traditional loan services to

246、 integrated financial services.Using AI,blockchain,IoT and big data,these enterprises are offering innovative online solutions that are scenario-based and data-driven.For example,technologies such as AI and NLP are being used to mine and analysemassive amounts of data,and generate information about

247、opportunities and risks in pre-lending,in-process and post-lending scenarios to help business partners explore opportunities,analyse risk,track information and raise management efficiency for existing or target customers.Technological systems are also being used to provide professional consulting se

248、rvices,including operational services,marketing and promotional services,and product and IT consulting services.In addition,innovative enterprises are using RPA,AI and other technologies to develop applications that address the needs of enterprises in various supply chain scenarios,including collect

249、ion,payment,investment,financing and management.These applications are laying the foundation for the digital transformation of corporate management.392022 China Fintech 50 Report 2023 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in

250、Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2023 Fintech Segment TrendsInc

251、lusive technology segmentTechnology is driving the construction of long-term mechanisms for the provision of financial services to SMBs and individual customersInclusive technology companies have been deepening and changing their technological methods.They not only focus on pursuing mechanism innova

252、tion and product innovation to offer inclusive financial services that meet the personal financial needs of long-tail customers,but also develop long-term mechanisms to provide financial services to small and micro businesses(SMBs).In recent years,financial institutions have been widely adopting inc

253、lusive technology in order to increase the accessibility and sustainability of their financial services and improve the affordability of credit costs,with the goal of engaging in inclusive finance.These technologies have improved the quality and efficiency of inclusive finance and are driving its hi

254、gh-quality development.Developing a long-term mechanism for loan services for SMBsIn May 2022,the Peoples Bank of China issued the Notice on Promoting the Establishment of a Long-term Mechanism for Boosting the Financial Sectors Confidence,Willingness,Capability,and Expertise in Lending to Micro and

255、 Small Businesses(the“Notice”),which proposes 20 initiatives,including the promotion of technological empowerment and product innovation.The role of fintech is mentioned several times in the Notice,and“strengthening the use of fintech”is specifically mentioned in Part XV.The Notice proposes embeddin

256、g fintech throughout the entire financial service process for SMBs,and it also states that fintech should play a fundamental role in supporting the financial sectors“confidence,willingness,capability,and expertise in lending,”so as to support the construction of a long-term mechanism for lending to

257、SMBs.Financial services for SMBs represent a global issue.Policy studies and fintech development in different countries over the years have shown that the key to improving financial services for SMBs and developing inclusive finance depends not on policy subsidies,but on mechanism innovation and mod

258、el innovation.With the support of financial technologies,financial institutions are integrating technology,scenarios and finance in order to create new customer acquisition,risk control and profitability models for financial services for SMBs;and this is causing the strategies,organisational systems

259、 and credit culture of banks to change.The functional relationship between“size,cost and risk”in SMB lending is changing fast,and the capabilities of the credit supply chain are improving rapidly.2023 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liab

260、ility company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 China Fi

261、ntech 50 Report402023 Fintech Segment TrendsThe integrated development of compliance technology,green finance,and sci-tech innovation financeFinancial institutions tend to not grant loans to SMBs due to the higher risk that the loans will become non-performing,and also due to concerns about rapid ch

262、anges in SMB operations,which complicate post-loan management.However,by integrating compliance technology and inclusive finance,enterprises can develop due diligence exemption systems for such credit services in order to apply exemption provisions related to the submission,review,confirmation and r

263、econsideration of due diligence materials.In addition,technologies such as blockchain can be used to prevent data tampering and tracing,thus reducing malpractice and other forms of non-compliance.At the 24th meeting of the Central Commission for Comprehensively Deepening Reform in February 2022,poli

264、cymakers called for promoting the integration of inclusive finance with green finance and sci-tech innovation finance.In respect of agriculture,rural revitalisation,precise poverty alleviation and SMBs,the service targets of inclusive finance and green finance overlap significantly.However,since gre

265、en finance currently focuses on supporting energy production and supply,transportation and infrastructure construction,SMBs have little access to green finance as their participation in these fields is limited.In fact,agricultural producers and SMBs generate significant amounts of pollution due to t

266、heir unsophisticated production methods and low technology,and for this reason they should represent key targets of pollution control.In this context,financial institutions should integrate inclusive finance and green finance in order to grant agricultural producers and SMBs access to green financin

267、g.412022 China Fintech 50 Report 2023 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent

268、 member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2023 Fintech Segment TrendsPaytechsegmentCross-border payment sees new growth markets,with smart contracts and cross-border payment expected to expand the use of e-CNY As the p

269、ayments market matures and regulatory policies are refined,the payment sector is gradually moving from unruly growth to high-quality development.The application of AI,big data,blockchain,and privacy computing,among other technologies,by enterprises in the payment sector is enhancing payment efficien

270、cy,promoting data multiplication and generating more value from payment data elements.Cross-border payment expands,and concerns around digital payment security grow amid geopolitical conflictsPolicy support for the expansion of cross-border e-commerce pilot schemes and cross-border payment business

271、has presented new opportunities to cross-border payment business.In February 2022,the State Council agreed to set up integrated cross-border e-commerce pilot zones in 27 cities and regions,including Ordos,in order to expand the cross-border e-commerce pilot programme.In June 2022,the central bank is

272、sued the Notice on Supporting Cross-border RMB Settlement for New Forms of Foreign Trade,extending the payment scope of payment institutions from products and services to items in the current account.This policy has widened the scope of cross-border payment business and opened up a new market for th

273、e industry.Cross-border payment systems that incorporate technologies such as AI,blockchain and big data can reduce manual processing,shorten settlement times and improve payment efficiency.Notably,the security of cross-border payments has come to the fore amidst geopolitical conflicts,and as a resu

274、lt countries are focusing on the autonomy,security and independence of their cross-border finance flows.In addition,some countries and regions are building diversified regional cross-border payment infrastructure.Against this backdrop,cross-border payment institutions should pay attention to securit

275、y issues when conducting offshore business and prepare contingency plans for any problems that may arise.2023 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)par

276、tnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 China Fintech 50 Report422023 Fintech Segment TrendsThe payment industry is deepening interconnecti

277、vity and generating more value from data elementsThe 14th Five-Year Plan for the Development of the Digital Economy,which was released in early 2022,states,“The digital economy will start to fully expand in 2025,at which time its core industries should account for 10 percent of gross domestic produc

278、tion(GDP).”Amid the rapid development of the digital economy and with the support of policies that promote interconnectivity,the closed payment ecosystem is opening up to accommodate external payment methods,such as Alipay,WeChat Pay,and Cloud Flash Pay.Interconnectivity between leading payment inst

279、itutions will gradually eliminate payment barriers,end monopolies in the payment industry and improve payment efficiency.As payment data is now a“factor of production,”payment giants are leveraging the multiplier effect of data and fully tapping the value of payment data elements in an effort to pro

280、mote interconnectivity and adapt to the digital economy.As the e-CNY pilot programme expands,smart contracts and cross-border payments are expected to enrich the use of the e-CNY The e-CNY plan has been launched,and regulators are actively promoting the e-CNY,resulting in an expanded e-CNY pilot sch

281、eme and richer application scenarios.The e-CNY can now be used in consumer scenarios covering peoples livelihood,clothing,shelter and transportation;in business scenarios covering bill discounting,green credit and supply chain finance;and in government-related scenarios covering provident fund payme

282、nt,government subsidies and taxation.At this point,the stability of the e-CNY system and the scenarios in which the e-CNY can be used have been effectively verified.Going forward,efforts will focus on expanding scenarios and constructing the e-CNY system.Enterprises can use smart contract technologi

283、es that promote consistency,observability and self-compliance to broaden use cases for the e-CNY.As the e-CNY is programmable and scalable,it can be linked to smart contracts for the purposes of conditional payments.Since 2022,e-CNY linked with smart contracts have been used to make prepayments for

284、educational institutions,gyms,etc.to address pain points in these consumer scenarios.The e-CNY is also being used to make cross-border payments in international trade.The multi-CBDC(mBridge)project,which is being jointly developed by the Bank of International Settlements Innovation Hub Hong Kong Cen

285、tre,the Hong Kong Monetary Authority(HKMA),the Central Bank of Thailand,the Digital Currency Institute of the Peoples Bank of China and the Central Bank of the United Arab Emirates,recently completed the first real-value pilot transactions using the digital currencies of four central banks.In this w

286、ay,the mBridge platform allows commercial banks to complete cross-border remittances and foreign exchange operations for their customers.The pilot programme validates the feasibility of using the e-CNY to make cross-border payments for international trade settlement purposes.With richer application

287、scenarios,a refined ecosystem and more advanced technologies,coupled with its low transaction costs and high security,the e-CNY will become more accessible and cover more transactions.In the future,it is expected to become a substitute for third-party payment methods to some extent and weaken their

288、influence.432022 China Fintech 50 Report 2023 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of ind

289、ependent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2023 Fintech Segment TrendsInsurtech segmentInsurtech is trending toward omni-scenario integration and vertical segmentsInsurtech companies are pursuing integration and

290、 innovation to penetrate the entire chain of the insurance sector,and they are making breakthroughs in scenarios in an effort to steadily optimise the traditional insurance business model.In this way,they are driving innovation in the insurance industry and pushing insurers to adapt to digitalisatio

291、n trends.Meanwhile,regulators have issued a number of policies,such as the Guiding Opinions of the China Banking and Insurance Regulatory Commission on Promoting the Quality Development of the Banking and Insurance Industries,the Guiding Opinions on Promoting the Online Development of Property Insur

292、ance Business and The General Office of the China Banking and Insurance Regulatory Commission on Issuing the Three Parallel Programmes for Promoting the Quality Development of the Property Insurance Industry,to encourage insurers to steadily improve their digital transformations,online services and

293、intelligent operations.The development of insurtech is moving from technological reform to omni-scenario integrationThe development of fintech has gradually changed the core elements of competition from assets and outlets to technology and data.In recent years,significant breakthroughs in underlying

294、 technologies have laid the foundation for insurtech innovation,which is resulting in insurers adopting new technologies and developing new business models that enable transformation.Over time,we have learned that technological innovations require the support of application scenarios and data resour

295、ces.To be fully embraced,insurtechshould be consumer-centric,and insurtech companies should understand that the development of the insurance industry relies on risk transfer and loss sharing,which are the industrys core values.Technology should be integrated with insurance business model innovation.

296、Furthermore,insurtech enterprises should consider how they can help insurers provide simpler,automated interaction processes and more personalised services for different customer groups.To this end,they should focus on capturing more value from data and designing innovative products based on user ne

297、eds.By following this approach,insurtech enterprises can build an insurance ecosystem,empower insurers and create more value for the industry.2023 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)par

298、tnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 China Fintech 50 Report442023 Fintech Segment Trends4 A New Jo

299、urney in Insurtech Integration:Building a Four-dimensional Closed-loop Ecosystem Combining Internet,Medicine,Pharmaceuticals and Insurance,20 December 2022,https:/ companies should explore the new logic of“insurance+services”and develop vertical segmentsGoing forward,insurtech companies should also

300、focus on vertical insurance scenarios and make breakthroughs in sub-segments.For example,in the post-pandemic era,given heightened public awareness around medical services and health,more domestic insurtech platforms are working to build closed-loop ecosystems that combine the Internet,medicines,pha

301、rmaceuticals,and insurance.Unlike in Europe and the US where effective closed-loop ecosystems have been formed between medical resources and insurance payments,domestic insurers have traditionally faced difficulties in improving the payment chain for medical treatment so as to reduce patients financ

302、ial burden,and in pushing hospitals to provide more targeted treatment through payment incentives.Using big data analysis and AI,third-party insurtech companies are capturing the demands of different stakeholders in the ecosystem,and by leveraging the latest technologies,they can build a win-win bus

303、iness model for all parties.For instance,pharmaceutical companies have a demand for using volume to compensate for price,”i.e.they are willing to moderately lower drug prices to drive sales growth,creating room for win-win situations for both patients and pharmaceutical companies.Meanwhile,insurers

304、face high marketing channel costs.If third-party insurtech companies can provide accurate services to reduce insurers channel costs,insurers can spend more of their premiums on medical claims while reducing costs and increasing efficiency,thus achieving a win-win situation for both patients and insu

305、rers.Moreover,from a consumer perspective,many patients are not highly compliant in taking their medication;common problems include irregular medication,unauthorised discontinuation of medication and inadequate dosage.To address this issue,third-party insurtech platforms can promote business growth

306、for pharmaceutical companies by guiding users through their service experience and encouraging them to take their medication as prescribed,especially for chronic illnesses4.452022 China Fintech 50 Report 2023 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limi

307、ted liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2023

308、Fintech Segment TrendsRegtechsegmentRegulators are expected to use market-based mechanisms to improve regulatory efficiency,and enterprises are proactively enhancing compliance management The Fintech Development Plan(2022-2025)proposes to“accelerate the comprehensive application of regtech and stren

309、gthen the development of digital regulation capabilities.”At present,regtech is being harnessed by regulators(the government)in supervisory processes as well as by regulated entities(enterprises)in their effort to ensure compliance.On the regulatory front,regtech helps financial regulators improve r

310、egulatory processes and enhance regulatory efficiency;meanwhile,financial institutions can use regtech to automate reporting and conduct data analytics,easing compliance pressure.In the future,regtech will enable regulators to use market-based mechanisms to improve regulatory efficiency,and financia

311、l consumer protection will be an important application areaRefined regulation is becoming the norm amid increasingly stringent regulation,and in light of this trend,regulators need comprehensive data to promptly and accurately grasp the dynamics of the entities they are regulating.However,as a resul

312、t of rapid financial innovation and the integrated operations of regulated entities,financial risks are increasingly concealed and complex,rendering traditional regulatory techniques inadequate.Recently,the Peoples Bank of China proposed to“strengthen regtech,and actively use big data,AI,cloud compu

313、ting and other technologies to enrich regulatory tools and enhance regulators ability to identify,prevent and resolve cross-sectoral and cross-market financial risks5.”However,instead of relying on regulatory agencies to upgrade regtech,the process should be market-driven.For example,the development

314、 of regtech can be outsourced to technologically advanced third-party regtech companies that provide services to regulators.At present,despite the increasing number of such companies in the regtech ecosystem,the types and number of participating entities are limited,and there is still room to enhanc

315、e cooperation and communication in the ecosystem.Third-party regtech companies help enhance regulatory efficiency,and more regtechcompanies will enter the market in the future.Going forward,we expect to see stronger coordination and cooperation among regulators,regulated entities,and third-party reg

316、tech companies,which will enhance regulatory data sharing and boost regulatory efficiency.5 Zhou Xiaochuan:Actively Using Big Data,AI and Other Technologies to Enrich Financial Regulatory Tools,C,10 September 2021,https:/ 2023 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(Ch

317、ina)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rig

318、hts reserved.2022 China Fintech 50 Report462023 Fintech Segment TrendsRegulated entities are enhancing their compliance management capabilities as technology enables the development of platform-based regtechStrengthened oversight and the frequent release of regulatory policies that emphasise“effecti

319、ve supervision,strict accountability and zero tolerance”are driving regulated entities to actively explore the use of technology in compliance.The evolution of regtech is causing regulated entities to move from a passive response posture to one that focuses on proactive and inclusive response.Enterp

320、rises are using regtech to actively enhance their financial compliance management capabilities and ensure safe and sound operations.In this way,their approach is shifting from“passively responding to compliance requirements”to“compliance-driven business development.”At present,regtech is mainly bein

321、g applied in the fields of anti-money laundering(AML),related-party transaction management and regulatory data reporting.While specific needs in these three compliance scenarios may vary,they require common core technical elements,such as data platforms,intelligent rule databases,subject identificat

322、ion and assessment capabilities,and whole-process risk monitoring capabilities.Hence,compared to top-down investment in regtech,construction from the bottom is more agile and extensible.With this structure,enterprises can flexibly respond to future regulatory requirements in other areas while also m

323、eeting their needs in respect of AML,related-party transactions and regulatory data reporting6.Under this scenario-based construction trend,regtech enterprises are using big data,blockchain,optical character recognition(OCR),NLP and knowledge graphs,among other technologies,to steer regtech applicat

324、ions towards professional regulatory compliance,with the goal of empowering human-computer interaction and digital intelligence and meeting the regulatory needs of various parties.6 Tencent and KPMG,Technology for Good:A White Paper on Regulatory Technology,June 2022.The rapid development of fintech

325、 has provided financial consumers with more innovative products and convenient services.At the same time,risks around personal information leaks and transaction fraud have been growing more insidious,increasing the complexity of efforts to protect financial consumers rights and interests.Regulatory

326、requirements for consumer protection are also becoming increasingly stringent,and regulators are focusing on using technology to achieve efficient oversight.Going forward,regtech will be used to develop a consumer protection system that covers the entire consumption process.Technology will be applie

327、d at all steps of the process,from information access to the final use of financial services.Throughout the entire process of information acquisition,customer access,product purchase and after-sales service,organisations will deploy data security,firewall and host security tools,among other basic se

328、curity measures,to protect personal data from leakage and unauthorised access and ensure the security of personal data.2023 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hon

329、g Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2022 China Fintech 50 Report47Appendix492022 China Fintech 50 Report 2023 KPMG Huazhen LLP

330、,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limit

331、ed,a private English company limited by guarantee.All rights reserved.Appendix ISummary of Fintech-related Laws and RegulationsDatePolicyIssued byOfficial link2022JanGuiding Opinions of the General Office of the China Banking and Insurance Regulatory Commission on the Digital Transformation of the B

332、anking and Insurance SectorsChina Banking and Insurance Regulatory Commissionhttp:/ Development Plan(2022-2025)Peoples Bank of Chinahttp:/www.china- on Strengthening Financial Services for New CitizensChina Banking and Insurance Regulatory Commission,et al.http:/ Fintech Committee of the Peoples Ban

333、k of China Holds a Meeting to Discuss and Plan Key Tasks for 2022Peoples Bank of Chinahttp:/ Report on the Digital Transformation of Chinas Banking SectorSina Financial Research Institutehttps:/ on Strengthening Credit Information Sharing to Promote the Construction of a Financing Credit Service Platform NetworkGeneral Office of the National Development and Reform Commission and General Office of