No prizes for guessing this one. With one of the biggest economies in the World, China has made rapid progress in every sphere of life and technology has become their forte. Defence, Consumer tech, entrepreneurship,etc. China has managed to win it all. China has been fortunate to have a growing startup eco-system along with a growing economy that provided many consumers for this technology.
Chinese banks and financial houses have the backing of their government and cannot take major decisions without the Government’s approval. So for them to move from their traditional way of doing business to a new way was difficult. However, once the Govt was on board, things changed drastically. Some of China’s fintech companies have been able to match the valuations of established European Banks. Ant Financial, a Chinese fintech company is now valued at a staggerring $60 billion, a value equal to the Swiss UBS. Ant financial just provides fintech services, but UBS being a client bank should have been bigger than it. This shows how powerful, fintech companies have become.
China has rapidly adopted internet usage. It has over 700 million internet users. Due to this, China has found it easy to become cashless. Contactless payments are very common. Fintech has made a huge positive impact in the daily lives of people and people have welcomed it. Economies which first pushed for the adoption of plastic money and then contactless payments are way behind China. Smart purses and mobile wallets are very popular and used regularly. A lot of services that people are used to as different payment services in UK, US and EU are bundled up as one purse and sold to the Chinese. This has made fintech companies important and very valuable in terms of their daily imapcts on the lives of citizens.
Fintech has shown to be a game changer for economies and it is time we embrace a digital and a cashless India ASAP.