Revenue of China's Fintech Companies Soared 55.2% in 2017

Source:iResearch March 12,20189:12 AM
Since 2016, the rising of Chinese internet users has decelerated, resulting in the waning demographic dividend of internet industry. and the era when internet finance grows rapidly with the assistance of user base is coming to an end. Internet financial companies start to go back to find elements that promote the industry rather than only pursue for user base, therefore, more financial practitioners gradually realize the importance of technology. What’s more, as the deepening restructuring of financial technology to China's finance, the closed production system of China’s traditional financial institutions is transferring to be an open system. With the continuous expansion of finance, many financial technology enterprises, based on their expertise, vertical management and knowledge of customers and the market, start getting involved in the financial system of traditional financial institutions and become the major participants in financial domain.
In 2017, the revenue of China’s financial technology companies totaled 654.1 billion Yuan, soaring 55.2% compared with 2016. iResearch holds the opinion that as financial technology serves for financial institutions, which is more like a back-end part in practical financial business, thus, it is not the most lucrative part in financial industrial chain. As a result, it is hard for the revenue of financial technology to enjoy explosive growth in a short term. It is probably to keep steady growth in the future.
Because of the constraints of system and technology, traditional financial institutions’ credit service can be difficult to cover the long tail population. However, through their unique channels of acquiring customers, data dimension and anti-fraud model, financial technology enterprises can help traditional financial institutions to satisfy the credit service demands of long tail population, whose function is just like “irrigation canals” to lead the water from “reservoir” to farmland and crops. Generally speaking, financial technology enterprises help traditional institutions to achieve inclusive finance.
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