The central bank of the People's Republic of China, known as the People's Bank Of China (PBOC), has released a financial and technology plan set for 2022-2025. A project geared towards promoting growth in the Financial Technology (FinTech) industry. Although a highlight of this plan is PBOC taking a Pro-open banking stand; however, its dive into open banking stresses more about a regulatory than participatory move.
Data remains the life wire for open banking and the entire concept of digital inclusion for financial institutions. Given this, the People's Bank Of China, although in support of promoting data sharing, is more driven towards tighter supervision of the entire idea of financial inclusion. The Central Bank of China, since 2020, has imposed sanctions and punishment on over 52,000 institutions and individuals in a bid to tackle issues like illegally selling and purchasing accounts, misappropriation of funds and money laundering. Hence, the goal is to strengthen governance of Financial Technology (FinTech) by ensuring orderly sharing of data under a secure and privacy supported system.
This new Plan of the People's Bank Of China (PBOC) will set all institutions in the FinTech industry in China under solid supervision by the Central Bank. The implication of monitoring is a rigid system. Companies and other players in China's FinTech will likely experience a slow progressive or developmental pace compared to the global FinTech ecosystem.
China in focus
Population: 1.40 billion in 2020 as compared to 1.39 billion in 2019
GDP: $14.72 trillion compared to $14.28 trillion in 2019
GDP per capita: $10,500 in 2020 compared to $10,216 in 2019