China Has Outpaced The Silicon Valley And New York In Fintech, Future Of Bitcoin
Bitcoin – Singaporean Bank DBS and Ernst & Young companies have released a collaborative report named as “The Rise of Fintech in Chin: Redefining Financial Services” to offer the insights of the great growth of Fintech in China and to evaluate the undisputed leader in the world in Fintech.
The DBS Chief Innovation Officer Neal Cross states that the high growth rate of the Chinese fintech industry can be attributed as per the regulations and policies imposed by the government on fintech networks and startups. They also noted that another main factor for the Chinese fintech market’s growth is the increasing support from the tech giants such as Baidu, TenCent, and Alibaba.
Drivers of Fintech in China and Market Target
Presently, the industry of fintech in China has been dominated by two of the main markets: insurance, payment, and remittances. More than 40% of banking services customers rely on fintech applications and platforms for settling the domestic as well as international payments. The smart AI-based fintech services are utilized by another 35% of the bank consumers with insurance.
The DBS and EY research team state that the key drivers of China’s fintech are the limited capacity of banking services and system that are continuously for failing in satisfying the demands and requirements of the Chinese people.
It’s meaning for Bitcoin BTC
The old financial applications and platforms have lower security measures, higher fees, and excessive KYC policies as compared to the bitcoin services. This is due to the fact that the majority of the financial applications relies on fiat or government issued money for operations. It means that more time used for authentication and verification of users and payments.
A great portion of bank users is switching to online payment applications in China. Moreover, the worldwide base of bitcoin user will likely see a recognizable promotion.