With the advancement of new financial infrastructure, the integration of online and offline financial institutions will be a key driver of revenue growth. OneConnect Financial Technology Co., Ltd, a leading technology-as-a-service platform for financial institutions and an associate of the Ping An Group, is leading the way in China.
At a recent technology industry roundtable discussion in Shenzhen, Mr. Ricky Ou, CEO of Gamma of OneConnect, said the new digital infrastructure will have four impacts on traditional finance: creating new drivers for consumption; promoting the digital transformation of financial institutions; improving industry efficiency; and assisting in the restructure of the financial sector.
COVID-19 Created Urgency for Contact-Free Banking
Within the trend of digital transformation, the COVID-19 pandemic has created urgency for traditional banks to increase online capabilities. For example, during the epidemic, OneConnect used artificial intelligence, big data and other technologies to help many banks build “contact-free banks” to fight the epidemic while maintaining business.
Digitized Operations Improves Lending for SMEs
As an important builder of new fintech infrastructure, OneConnect has actively seized opportunities in recent years and continuously improved its own capacity.
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At the beginning of this year, OneConnect provided technical support for a financing platform for small and medium-sized enterprises (SMEs) that was launched in Guangdong Province to address the issues of “difficult, expensive and slow financing” of SMEs. By September 2020, the platform had access to a total of 250 government data from 34 government units, and collected comprehensive information for more than 13 million SMEs in the province. More than 350 financial institutions have launched more than 1,000 financing products on the platform, more than 500,000 enterprises registered, and the total amount of financing has exceeded RMB30 billion.
New Regulatory Framework Needed
While the new infrastructure will facilitate the digital transformation of the traditional financial sector, it will also create some new challenges. Fintech innovation itself requires a deep integration of technology and finance to promote two-way interaction and improvement of financial and technological capabilities. However, at the same time, the innovation of financial infrastructure also needs a new regulation framework for digital supervision and compliance.
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