The “The 4th Annual Conference on Blockchain Finance and Financial Technology China 2018” was successfully held in Shanghai from March 15-16, 2018. The conference was supported by a number of organizations including BITRENT, Blockchain Terminal, NetEase Cloud Shield, and Dream Exchange. The activity site brought together more than 600 domestic and foreign experts and scholars and corporate executives from industries such as banking, insurance, payment, internet finance, blockchain, big data, risk control, information services, and law firms.
Li De, former deputy director of the People’s Bank of China’s People’s Bank of China’s People's Bank of China’s People's Bank of China, attended the forum and delivered wonderful opinions on financial technology.
Li De: Ladies and gentlemen, good morning! It is a great honour to come to Shanghai, the modern metropolis, in the spring season with the privilege of participating in the 4th China Blocked Conference on Blockchain Finance and Financial Technology 2018. At present, China’s economy has been stable and positive, driving the entire consumer economy and consumer finance, as well as the flourishing development of financial technology.
By the end of last year, the size of our Internet users had reached 772 million. The penetration rate reached 55.8%. In 2017, total social retail sales reached more than 3,600 billion, an increase of 10.2% over the previous year. Online shopping and online retail, in particular, were very popular, reaching 7.2 trillion yuan, an increase of 32.2% over the previous year. Payment, maintain rapid growth, market concentration further. In particular, mobile payments rose, and the number of transactions increased significantly. At the end of last year, the number of users using online payment in China reached 530 million. Compared to 2016, it has increased by more than 56 million people. Our Internet wealth management market is also diversified. Last year, the total number of Internet users we bought for Internet banking reached 129 million, an increase of 30% year-on-year. At the same time, with the standardization of our Internet finance, we have cleared up and rectified. According to statistics, our online loan industry has developed steadily. By the end of the 17th year, it was 1,931, more than 500 fewer than in 16 years. In 2018 we continue to regulate the development of internet finance, so the scale of online lending may further decline.
Our internet insurance is developing steadily, the insurance insurance structure has changed, and the proportion of life insurance has increased. This is the current state of our entire financial technology and Internet finance development.
With the steady economic development of the entire economy and further deepening of the reform of the supply side of our economy, financial science and technology will also be further developed. It mainly has the following characteristics:
The accelerating integration of Internet technology and financial industry, mobile payment of big data, cloud computing, and the central position of blockchain in Internet finance will further develop. At present, many Internet companies have begun to turn to financial technology companies. Market competition is also intensifying. Many industries, including our banking industry, non-banking industry, and internet finance companies, will join the ranks of financial technology.
The third is the rapid development of mobile, the introduction of mobile technology after the introduction of information technology in the financial sector, allowing consumers to pay for goods in mobile terminals, as well as online loans, etc., especially mobile payment for mobile phones, is being implemented in many areas.
The fourth is the accelerated development of model innovation. The first is financial e-commercialization. With the banking industry, securities, insurance industry, etc., we have mastered a lot of customer information through technical means, and our internet companies have also mastered many technological means. The customer's information in all aspects, including his credit, merchandise, funds. The second is to gradually build an integrated platform. Our financial companies and Internet companies can develop a variety of customer needs, establish a comprehensive platform, and implement a one-stop service.
The fifth is the acceleration of the development of the organization system. Our Internet companies have accelerated their integration with the industry. At the same time, our service market is further sinking. From the first-tier cities to the second-tier, the third-line, and even to the rural areas, further development is planned. financial. This is the status of our financial technology and the development of Internet finance.
In the development of our financial technology, it is not always easy. In particular, our online loan, our financial management, our equity investment and so on. In the past, some cases have occurred. Therefore, these two years have been rectifying and rectifying. Gradually standardize it.
Then financial science and technology also face some risks, first of all, the nature and function of finance itself, as well as its existing risks, itself including credit risk, liquidity risk, legal risk and so on.
The second is the Internet platform for financial technology. It may also spread and amplify all these risks.
The third is our Internet + these innovative areas, there may be some other risks. At the same time, in the process of rectification and rectification, some of the technology finance companies such as our Internet finance are undergoing transformation. In this regard, there may be some risks in the transition. Therefore, in these areas, there are some risks that need attention in the process of transformation and development, especially the prevention of systemic risks.
Therefore, we will continue to standardize the development of the future of Internet finance. Our People's Bank of China, including the leadership of the China Banking Regulatory Commission, has repeatedly stressed that anyone who engages in finance must be licensed and must standardize its operations. The future of Internet finance may be to further strengthen supervision and standardize its development.
The main performance is four aspects. One is to standardize the industry's access and withdrawal mechanisms. We know that there are two important documents in 2017, one is about the deposit system of online loan companies, and banks need to write supervision reports. There is a very important document that is related to the relevant departments of the People's Bank of China that we drafted on the new regulations on asset management. We are currently accepting public opinions and we will try to bring the issue to the State Council in 2018. We will work on various industries, especially financial management. The financial asset management business is standardized.
At the same time, we also heard that digital currency and virtual assets are also included in civil law, so it may be that our future financial technology and internet finance will be further standardized.
The second is to support the development of the real economy and to support supply-side reforms, including our Internet banking, Internet securities and insurance, and further follow the "three reductions and one supplement." One of the “three reductions” includes cost reduction. We need to reduce the financing costs of companies through internet finance. Our current debt ratio is relatively high, including the debt ratio of residents. In the third quarter of 2017, the debt ratio of our residents has exceeded 48%, and it is said that one-third of the residents are already in a high debt ratio. Including corporate, local debt and debt ratios are all relatively high, so we must reduce the financing costs of companies through Internet finance and technology and promote the steady development of the entire society.
The third is to improve the credit information system. This is very important. This is to increase the transparency of financial information, including the People's Bank of China, including the People's Bank's credit center, etc., including various specialized banks, including specialized credit information companies. To form a very good social credit system to detect and supervise the credit of enterprises and individuals.
The fourth is that we need to further use scientific and technological means to carry out financial innovations, especially in the area of financial supervision. Recently we have new information that we originally changed from one line of three meetings to one line of two meetings. This is only a preliminary message. The China Banking Regulatory Commission and China Insurance Regulatory Commission must merge, that is, the financial system is also innovating. Then the financial supervision means are also innovating, and gradually using this big data, cloud computing, blockchain will further develop in the field of financial supervision, and form a fast, convenient and efficient financial supervision system.
Finally, I wish the conference a complete success. thank you all!