A Brief Analysis Of Fintech

With the approaching of the industrial age 4.0,the definition of 'Fintech' began to be mentioned frequently in in the sector of science,technology and the emerging economy.the new technology,such as big data,artificial intelligence,chain blocks,cloud computing,began to merge with the traditional finance industry,and gradually penetrate into it,which changes disruptively the mode of the financial system,business model,and consumption patterns.Under such a macroscopic background,the financial technology became the new highland of realizing the economic development.Countries began to deploy its financial plans for the development of the technology industry,in the hope that they could occupy the dominant position in the fierce competition.The current FinTech has achieved development across regions and diversification.Why could FinTech develop so fast?By using data analysis,we could find that the developments of technology are the most fundamental motivation.Secondly,the traditional financial system exists obvious imbalance between supply and demand,which need to be resolved urgently,this is also the fundamental cause of FinTech.Moreover,after the financial crisis,financial institutions had to face higher compliance costs,and the FinTech was in the early stage,which faced less rules,so there will be a regulatory arbitrage space.In the 21st century,all countries want to strengthen 'soft power' to promote scientific and technological innovation,which provided the financial technology a good loose soil environment to root in.The change of population structure and the upgrading of consumption structure accelerate the development of FinTech.FinTech can achieve the combination of emerging technology with traditional financial business,which could reduce transaction costs and improve the efficiency of financial services based on data mining and tracking,FinTech can be able to quantify the risk factors and achieve the real-time monitoring,which can improve the scientificity and accuracy of economic decision.FinTech makes financial services be delivered across time and space,it has changed the motion of traditional financial services,which takes products as the starting point of,FinTech let users to participate in product research and development,and with the help of 'user portrait' they can provide customized service to customers to achieve‘personalized'.But it overly dependent on the data and the underlying technology,which brings the technical risk,operational risk,compliance risk,and make the traditional financial risk more complex.At the same time it has high leverage,light assets,which brings the increase the risk of default.In addition,how to implement the protection of data and privacy has become a hot topic.JDD,as the representative company of FinTech industry,its development course and status quo are also the microcosm of the entire industry.JDD was just founded 6 years ago,but it can be top-ranking of the industry.After comparative analysis and in-depth research,we can conclude that it has to do with this with the following factors.Firstly,the firm sticks to developing science and technology,secondly,they adhere to extending application scenarios.Lastly,they have accurate positioning and strategic.However,the FinTech,after all,is a relatively new concept.In the process of development,the enterprise will inevitably encounter some problems,such as consumer protection,enterprise reputation,technology risk,which is also the present condition of the industry's development.The conclusion can be drawn from the analysis of macroeconomic environment,if they want to overcome these obstacles on the road for development of financial technology,purely rely on the change of the company is insufficient,it also need he whole industry's participation and the joint efforts of regulators.At the micro level,the company should adhere to take technology as the core competitiveness,vigorously promote scientific and technological innovation,build a talent pool and improve consumer protection mechanisms as well as establish a responsible corporate image to increase customer loyalty.They should also promote the construction of enterprise inner control and contract system to reduce the operation risk.On the macro level,they need to promote the development of technology supervision,promote the construction of diversified supervision system,strengthen the financial regulatory authorities'learning and understanding of science and technology,to suit the remedy to the case.In addition,supporting infrastructure construction is also essential.The future development of FinTech will be towards the inclusive finance,and will used more frequently in the background such as risk control.As China has become a 'upstart'during the development of FinTech,we should study deeply in the area of the endogenous mechanism of FinTech,after which we should push it to a higher level with a global perspective,contribute more to the global development of FinTech.This paper uses a large number of data and literature and comparative research to study the development of Fintech.In view of that existing literature mainly elaborates Fintech from the macro framework,this paper put forward suggestions after introducing the case of JDD from the micro perspective.However,it is difficult to obtain internal data and more empirical analysis because the topic is relatively new,which causes that some chapters are not rigorous enough.