Rapid development of internet has substantially lowered the cost of financial services. Digital inclusive finance characterized by small amount and individualization has emerged as a brand-new development direction, according to a report released by National Institution for Finance & Development.
China undoubtedly leads the world in digital inclusive finance. According to the statistics released by the Ministry of Industry and Information Technology, by the end of February 2017, mobile subscribers in China numbered 1,330 million, including 814 million fourth-generation (4G) telecommunication network users. China’s mobile internet shopping totaled merely RMB 68.57 billion in 2012, but the amount skyrocketed to over RMB 3 trillion in 2016. China’s mobile payment value stood at RMB 144.5 billion in 2012. However, the value of mobile payments completed by third-party payment institutions surged to RMB 38 trillion in 2016, approximately 50 times of the US figure.
The report pointed out that the growth of China’s mobile internet sector has given rise to a group of world-class new-tech enterprises, such as Ant Financial, enhancing the country’s capabilities of exporting technologies to its neighboring countries and even the world.
Firstly, mobile payment has enabled access to a wider customer group. The APP of Alipay Wallet is being used by more than 450 million users, who have registered with their real names to make daily payments and transfers.
Secondly, development of credit risk control technology based on big data has cut down financing costs of micro and small-sized enterprises. MYbank has granted more than RMB 900 billion loans to over 5 million micro and small-sized enterprises, averaging nearly RMB 30,000 each.
Thirdly, wealth management channels of ordinary households have expanded. For example, BalancePal, having a minimum threshold of RMB 1, has already become a popular mode of wealth management accepted by low-income groups and ordinary white collars.
The ecology of digital inclusive finance is gradually maturing in China, and there are a number of models for reference and duplication. Promoting the successful experience of China’s digital inclusive finance in countries along the Belt and Road to stimulate local economy and improve people’s welfare has emerged as a fresh perspective attributable to the Belt and Road Initiative in the internet era.
China's Digital Inclusive Finance Extends Rapidly to Countries along the Belt and Road.pdf
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