Development Practice of DFI in China...foundation for the DFI Source:MIIT,PRC Chinese Mobile Phone...
Transcript of Development Practice of DFI in China...foundation for the DFI Source:MIIT,PRC Chinese Mobile Phone...
Development Practice of DFI in China
He YangChina Academy of Information and Communications Technology
January 2019
Client
Farmer
Mobile payment
Internet loan
Internet financial management
Internet insurance
Development System of Digital Finance Inclusive in China
Service Mode
law and policy terminal network
Infrastructure
Medium, small and micro enterprises
Low-income,disabled and old people
The development of 4G,broadband, has established the foundation
The scale of Internet users in China
63200 64875 66769 68826 70958 73125 75116 77198 80166
2014.06 2014.12 2015.06 2015.12 2016.06 2016.12 2017.06 2017.12 2018.06
the number of Internet users(million)
Fixed/mobile broadband penetration rate
56.60% 59.60% 61.40% 65.30% 69.10%72.50% 74.40%
78.90% 82.00%85.40%
61.50% 65.00% 68.00%72.10% 75.00% 78.30% 81.40%
86.30% 90.40%93.10%
2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 2018Q3
Fixed broadband Mobile broadband
The construction of 3G/4G Base stations
63.2 81.7 109.2 128.4 143.6 141.4 133 121.1
6.373.3
177.1
263.2328.4 346.4
2011 2012 2013 2014 2015 2016 2017 2018.6
3G(million) 4G(million)
The comparison on the penetration of 4G
7.6
29.6
58.2
70.373.5
1.7 6.314.4
25.535.8 46.7
55.1 58.3
0.4 1.5 3.2 7.3
1524.5
33.838.2
2011 2012 2013 2014 2015 2016 2017 2018.06
China OECD Worldwide
Source : PRC
Chinese mobile phone and smart phone penetration have build a solid foundation for the DFI
Source:MIIT,PRC
Chinese Mobile Phone penetration rate has reached 112% in 2018
Chinese smartphone penetration rate have reached 68% in 2018
73.682.6
90.8 94.5 95.5 96.2 102.5112.16
1
0
20
40
60
80
100
120
2011 2012 2013 2014 2015 2016 2017 2018Mobilephone
30%39%
58%66% 68%
0%
10%
20%
30%
40%
50%
60%
70%
80%
2014 2015 2016 2017 2018Smartphone
With the Rapid Development of Mobile Payment in China, Inclusive Finance penetrates into Remote Poverty-stricken areas
Source :China payment clearing associationPeople's Bank of China、People's Bank of China
Chinese mobile payment transaction have reached 200 trillion yuan in 2017
Chinese mobile payment has become the most common payment in 2017
Filling in Remote Rural Financial Gaps to
Revitalize the Rural Economy
17.2919.44
21.6123
25.1
4.5 5.36 6.15 78.1
3.04 3.4 3.51 3.66 3.9
2013年 2014年 2015年 2016年 2017年Rural loan balance (trillion yuan)
Farmer loan balance (trillion yuan)
Agricultural loan balance (trillion yuan)
52.01 96.06
1063.37
3118.86
2013 2017
ATMs (per 10, 000 persons)
POS Terminals (per 10, 000 persons)
12.5
42.5
9
29
2015 2016
The amount of Internet financial transactions (billion yuan)
The number of P2P platforms supporting the “Three Rural”
Source:People's Bank of China、China's " three rural areas" Internet finance development report (2017)
The loan balance of the “three Rural” have reached
37 trillion yuan in 2017
The number of ATMs and POS have reached three
thousand per 10 thousand in 2017
The amount of Internet financial transactions have reached 42 billion yuan in
2016
Internet loan
Internet financialmanagement
Internetinsurance
• for consumers to borrow by Ant credit pay• for merchants to provide online business wang wang agricultural loans
100 million Annual Active Users
Case-Ant Financial Constructs Inclusive Financial Platform by Internet
• Open operation platform for financial institutions• Provide users with customized financial products and services
• Ant insurance service platform has cooperated with 78 insuranceinstitutions
• Provide more than 2000 types of insurance products• Average daily insurance amount already exceeded 21 million sheet
330 million Accumulative user
392 million Annual Active Users
Case-A New Model for Agricultural Loans Provided by JD Finance
Make the cultivation loan
Distribute feed to users
Feed demand
Feed manufacturer
Feed acquired
Loan process
Cultivation ERP
Run out of feed
Baby chicks
Chickens
Slaughterhouse
Repayment process
breed
delivery
Pay off the arrears
The digital agricutrual loan of Jingdong(JD) Finance is a micro supply chain financial model with total loan of about 1 billion yuan in the past two years
Source:CAICT《China Digital Inclusive Financial Development Analysis Report》
Suggestions-Improve policies, Strengthen the supports
A
• Formulate and perfect the
relevant laws and regulations on
digital finance,putting the
development of DFI into the track
of legalization.
C
• Promote the application in the
field of public livelihood ,meeting
people‘s needs for a better life.
Promote the widespread
applications in various fields.
B• Improve the regulatory process
and capability, balancing the
innovation and risk during the
promotion of DFI
D
• Strengthen policy
communication with countries
along the “One Belt and One
Road” and improve regulatory
mechanism.
Source:CAICT《China Digital Inclusive Financial Development Analysis Report》
Suggestions-Strengthen foundation,Cultivate users
1
• Based on the infrastructure projects, A series of infrastructures are needed to be improved urgently, such as Anti-fraud system, Cloud Credit System, Third-party credit ratings and Credit agencies, etc.
2
• Encourage digital innovation throughmarket-oriented incentives and public-private partnerships, therefore stimulate the creativity in the DFI.
3
• Combing with projects about vulnerable groups, the relevant rules of anti-fraud in digital financial services should be further enforced and a reasonable recourse mechanismshould be established.
Source:CAICT《China Digital Inclusive Financial Development Analysis Report》
Suggestions-Industrial cooperation,Ecological construction
Cooperation• Multi-level and in-depth cooperation will help to improve the speed and scale
of the development of DFI in a short time. At the same time, traditional and new finance have their own advantages and characteristics. Only through cooperationcan we achieve win-win results.
Business model• The business model of DFI has been continuously innovated. New models of DFI
have initiated and many groups compete to enter the field of DFI, promoting the financial resources to small and micro entrepreneurs, individual businesses, ordinary wage earners and other inclusive financial groups.
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