The document provides an overview of China's financial industry and the opportunities for financial innovation. It notes that China's economy is slowing but still growing, and the government is reforming the financial industry and encouraging innovation. This confluence of factors, along with a large population that is increasingly mobile and online, is creating opportunities for new financial technologies and services to emerge in China. Non-financial companies are leveraging technology to enter the financial sector. Overall the document discusses how China's financial landscape is primed for innovation to address consumers' evolving needs and behaviors.
An overview of the mobile wallets in China, we have gathered relevant research to assess the current state and future potential of mobile wallets in China that marketers should know-including the prominent wallet types, usage trends, key challenges and future prospects.
Asia-Pacific Online Payment Methods Report 2013 - First Half 2013 by yStats.com yStats.com
The recent „Asia-Pacific Online Payment Methods Report 2013 – First Half 2013“ report by Hamburg-based secondary market research company yStats.com provides information about the movement toward online and mobile purchase transactions. The report is based on recently published information from a variety of sources and details the latest trends and news on the topic, with projections of continued growth in the next few years.
Which societies are going cashless, and what models are they adopting? How can technology support governments, consumers and merchants in going cashless?
Fear and favoring of digital currency
The Economist Intelligence Unit, commissioned by Crypto.com, exploring the extent to which digital payments are trusted by consumers and what barriers may exist to basic monetary functions becoming predominantly electronic or digital.
An overview of the mobile wallets in China, we have gathered relevant research to assess the current state and future potential of mobile wallets in China that marketers should know-including the prominent wallet types, usage trends, key challenges and future prospects.
Asia-Pacific Online Payment Methods Report 2013 - First Half 2013 by yStats.com yStats.com
The recent „Asia-Pacific Online Payment Methods Report 2013 – First Half 2013“ report by Hamburg-based secondary market research company yStats.com provides information about the movement toward online and mobile purchase transactions. The report is based on recently published information from a variety of sources and details the latest trends and news on the topic, with projections of continued growth in the next few years.
Which societies are going cashless, and what models are they adopting? How can technology support governments, consumers and merchants in going cashless?
Fear and favoring of digital currency
The Economist Intelligence Unit, commissioned by Crypto.com, exploring the extent to which digital payments are trusted by consumers and what barriers may exist to basic monetary functions becoming predominantly electronic or digital.
Digital payment systems are the backbone of digital commerce. Indian government along with the corporate community is making a significant push to build infrastructure for digital payments along with encouraging the citizens towards a cashless economy.
BRIC Online Payment Methods Report 2013 - First Half 2013 by yStats.comyStats.com
The recent „BRIC Online Payment Methods Report 2013 – First Half 2013“ report by Hamburg-based secondary market research company yStats.com provides information about the movement toward online and mobile purchase transactions.
Reference: Mobile payment industry in china 2012-2015 C. Keiko Funahashi
Referenced in presentation, "The Seven Wonders of China's Mobile World"
http://www.slideshare.net/ckeikofunahashi/m-learncon-session-907-ckeikofunahashi
This presentation on Mobile Banking was given via webinar on May 3rd. The presentation goes into detail regarding predictions on consumer adoption of Mobile Banking.
[Abstract] Demonetisation: Push Towards a Digital EconomyShreyas Kamath
Presented at Guru Nanak College of Arts, Science & Commerce.
The paper identified the required infrastructure for sustaining the impacts of demonetisation on financial technology and consumer behavior.
(Almost) everything you need to know to start in FintechSophie Guibaud
This workshop will provide readers with a global overview of the Fintech world, market dynamics and how London has managed to become a leading Fintech hub. They will learn about the various business models that fall under the Fintech umbrella (Payments, Money transfer, Crowdfunding, Lending, Data & Analytics) and also discuss new banking models that are trying to inspire and shape the bank of the future.
Impact of Technology on E-Banking; Cameroon PerspectivesEswar Publications
The financial services industry is experiencing rapid changes in services delivery and channels usage, and financial companies and users of financial services are looking at new technologies as they emerge and deciding whether or not to embrace them and the new opportunities to save and manage enormous time, cost and stress.
There is no doubt about the favourable and manifold impact of technology on e-banking as pictured in this review paper, almost all banks are with the least and most access e-banking Technological equipments like ATMs and Cards. On the other Hand cheap and readily available technology has opened a favourable competition in ebanking services business with a lot of wide range competitors competing with Commercial Banks in Cameroon in providing digital financial services.
Facebook-BCG Report on the impact of digital in the Financial Services IndustrySocial Samosa
India is on the cusp of a digital
revolution. With rising internet and
smartphone penetration, the digital
DNA of India is rapidly changing.
The first 100 million ‘digital Indians’
were largely men, millennials and
metro based. However, with higher
adoption among women, lower tier
cities and older age groups, the face of
an average internet user is changing.
They are also engaging in mature
activities, going beyond search and
social networking to online shopping
and banking. In 2013, only 7% urban
internet users with digital age less than
2 years adopted online shopping. This
grew more than four fold in four years.
A similar trend has been seen in online
banking as well.
Also, with increasing smartphone
penetration, the way consumers are
accessing internet is changing. In
2013, only 44% of urban population
preferred mobile for internet access,
but now almost 3/4th prefer mobile.
Find More Case studies at - https://www.socialsamosa.com/category/indian-social-media-case-studies/
A primer on the Fintech market in India, with infographics on the market landscape, size and evolution paths. Includes estimates on penetration levels of digital banking and category specific growth expectations.
Digital payment systems are the backbone of digital commerce. Indian government along with the corporate community is making a significant push to build infrastructure for digital payments along with encouraging the citizens towards a cashless economy.
BRIC Online Payment Methods Report 2013 - First Half 2013 by yStats.comyStats.com
The recent „BRIC Online Payment Methods Report 2013 – First Half 2013“ report by Hamburg-based secondary market research company yStats.com provides information about the movement toward online and mobile purchase transactions.
Reference: Mobile payment industry in china 2012-2015 C. Keiko Funahashi
Referenced in presentation, "The Seven Wonders of China's Mobile World"
http://www.slideshare.net/ckeikofunahashi/m-learncon-session-907-ckeikofunahashi
This presentation on Mobile Banking was given via webinar on May 3rd. The presentation goes into detail regarding predictions on consumer adoption of Mobile Banking.
[Abstract] Demonetisation: Push Towards a Digital EconomyShreyas Kamath
Presented at Guru Nanak College of Arts, Science & Commerce.
The paper identified the required infrastructure for sustaining the impacts of demonetisation on financial technology and consumer behavior.
(Almost) everything you need to know to start in FintechSophie Guibaud
This workshop will provide readers with a global overview of the Fintech world, market dynamics and how London has managed to become a leading Fintech hub. They will learn about the various business models that fall under the Fintech umbrella (Payments, Money transfer, Crowdfunding, Lending, Data & Analytics) and also discuss new banking models that are trying to inspire and shape the bank of the future.
Impact of Technology on E-Banking; Cameroon PerspectivesEswar Publications
The financial services industry is experiencing rapid changes in services delivery and channels usage, and financial companies and users of financial services are looking at new technologies as they emerge and deciding whether or not to embrace them and the new opportunities to save and manage enormous time, cost and stress.
There is no doubt about the favourable and manifold impact of technology on e-banking as pictured in this review paper, almost all banks are with the least and most access e-banking Technological equipments like ATMs and Cards. On the other Hand cheap and readily available technology has opened a favourable competition in ebanking services business with a lot of wide range competitors competing with Commercial Banks in Cameroon in providing digital financial services.
Facebook-BCG Report on the impact of digital in the Financial Services IndustrySocial Samosa
India is on the cusp of a digital
revolution. With rising internet and
smartphone penetration, the digital
DNA of India is rapidly changing.
The first 100 million ‘digital Indians’
were largely men, millennials and
metro based. However, with higher
adoption among women, lower tier
cities and older age groups, the face of
an average internet user is changing.
They are also engaging in mature
activities, going beyond search and
social networking to online shopping
and banking. In 2013, only 7% urban
internet users with digital age less than
2 years adopted online shopping. This
grew more than four fold in four years.
A similar trend has been seen in online
banking as well.
Also, with increasing smartphone
penetration, the way consumers are
accessing internet is changing. In
2013, only 44% of urban population
preferred mobile for internet access,
but now almost 3/4th prefer mobile.
Find More Case studies at - https://www.socialsamosa.com/category/indian-social-media-case-studies/
A primer on the Fintech market in India, with infographics on the market landscape, size and evolution paths. Includes estimates on penetration levels of digital banking and category specific growth expectations.
2016 China Financial Industry Trends and OutlookKapronasia
Digital payments, m-commerce, private banks, and industry reform will dominate the headlines in 2016. Which are the key trends that are critical for your business? To help clients and industry participants better understand what lies ahead for fintech in China, Kapronasia is proud to present our 6th annual top-10 financial technology trends webinar.
2012 China Financial Industry Trends and OutlookKapronasia
While the rest of the world struggles with a lingering financial crisis, Chinese Financial institutions will continue investing in financial technology innovation in 2012. New technologies such as EMV and mobile near-field payments will drive significant investment as financial institutions continue to modernize and expand both the breadth and depth of their product offerings.
This webinar from Kapronasia will look at some of the key insights from Kapronasia’s “China Financial Technology 2012 – Top 10 Trends Shaping the Industry" report, a comprehensive look at the key issues and challenges and how banks are overcoming them.
This presentation examines trends and innovations in financial services (focusing on banking, insurance, credit cards).
In the last few years, the financial services industry has undergone a digital evolution. Now, it is time for a digital revolution, due to growing disruptive "Fintech" start ups and their innovative models.
MOBILE SIMPLE PAYMENT SYSTEM DEVELOPMENT FOR ONLINE DONATION INVIGORATIONIAEME Publication
The simple payment service is becoming generalized as a payment and settlement means, covering consumers' online shopping, banking/financing, payment, remittance, and transfer, due to IT development and the FinTech industry's expansion. Due to changes in the payment means environment, donation or diverse donation activities started to become digitalized by adopting simple payment platforms. This study presents the mobile simple payment system construction strategy formed by the Korean Red Cross (KRC) and its execution method and results. This study aims to specifically present how online donation invigoration needs to be led and how the simple payment system can be used by non-governmental organizations (NGOs) and the relevant institutions that need to encourage contributions and donation activities according to change of the temporal environment. As a result of the case study, the mobile notice authentication and simple payment use rates of the elderly were very low. If an online system had been used for donation like other digital services, this study found that an increase in education for e-literacy in smartphones and services concerning the elderly is essential. Also, it was found that there is a need to consider IT companies' diverse technology types and open collaboration types on the access modes.
This presentation explores what future of commerce may look like given the current trends in mobile devices, digital payments, social commerce and security including tokenization and new forms of identity verification
The Fintech industry which is the backbone of all economies has also been impacted because of Covid. What are the implications of Covid to an important sector?
Demonetisation: Push Towards a Digital EconomyShreyas Kamath
Is demonetisation an independent event or a part of a larger trend? The paper hypothesises that demonetisation is a part of the transition towards a digital economy. This paper seeks to identify the required infrastructure for sustaining the impacts of demonetisation on financial technology and consumer behavior to ascertain if the impact will be temporary in nature.
IDCEE 2014: The Future Of International Payments: Next 5 Years - Michael Kent...IDCEE
http://idcee.org/p/michael-kent/
Michael founded the digital payments business Azimo in 2012 and serves as the company’s CEO. Primarily focused at the world 200m+ economic migrants, the business allows customers to send money from any Internet connected device to 198 countries fast, secure and at very low cost.
Prior to Azimo, he co-founded the Small World Financial Services Group, building the company up, via a series of 14 acquisitions, to be Europe's largest offline money transfer provider with turnover in excess of $4bn pa.
He is also an active Angel investor with investor and advisory roles in number of UK based fin-tech businesses.
Before becoming an entrepreneur he worked in the financial services practise at Accenture and held senior M&A roles at WPP and News Corp. He holds an MA from Cambridge University and an MBA from INSEAD.
Pic's are here: http://www.flickr.com/photos/idcee/sets/
More @ http://idcee.org
Follow us on:
YouTube: http://www.youtube.com/user/OfficialIDCEEChannel
Facebook: https://www.facebook.com/IDCEE
Linkedin: http://www.linkedin.com/groups/IDCEE-3940138
Twitter: https://twitter.com/idcee_eu
Google+: http://gplus.to/idcee
Flickr: http://www.flickr.com/photos/idcee/collections/
From our local office at Beijing, we are glad to release an introduction to the Chinese Internet Market.
With the chinese economy still growing fast, the internet market has experimented an incredible growth in recent years. And what is more promising, every analysis foresee what is seems to be an unprecedented boom for the years to come.
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
Building Your Employer Brand with Social MediaLuanWise
Presented at The Global HR Summit, 6th June 2024
In this keynote, Luan Wise will provide invaluable insights to elevate your employer brand on social media platforms including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok. You'll learn how compelling content can authentically showcase your company culture, values, and employee experiences to support your talent acquisition and retention objectives. Additionally, you'll understand the power of employee advocacy to amplify reach and engagement – helping to position your organization as an employer of choice in today's competitive talent landscape.
Navigating the world of forex trading can be challenging, especially for beginners. To help you make an informed decision, we have comprehensively compared the best forex brokers in India for 2024. This article, reviewed by Top Forex Brokers Review, will cover featured award winners, the best forex brokers, featured offers, the best copy trading platforms, the best forex brokers for beginners, the best MetaTrader brokers, and recently updated reviews. We will focus on FP Markets, Black Bull, EightCap, IC Markets, and Octa.
In the Adani-Hindenburg case, what is SEBI investigating.pptxAdani case
Adani SEBI investigation revealed that the latter had sought information from five foreign jurisdictions concerning the holdings of the firm’s foreign portfolio investors (FPIs) in relation to the alleged violations of the MPS Regulations. Nevertheless, the economic interest of the twelve FPIs based in tax haven jurisdictions still needs to be determined. The Adani Group firms classed these FPIs as public shareholders. According to Hindenburg, FPIs were used to get around regulatory standards.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Company Valuation webinar series - Tuesday, 4 June 2024FelixPerez547899
This session provided an update as to the latest valuation data in the UK and then delved into a discussion on the upcoming election and the impacts on valuation. We finished, as always with a Q&A
2. Overview
• China Today
• How the financial industry is changing
• Setting the stage for financial innovation
• Digital Currency
• Challenges
• Conclusions
15-2-2 2
3. Macroeconomic / Financial Industry Development
• GDP Slowing
• Shadow Lending
• Increased focus on changing the industry
– Regulation / government driven
China economy still strong, but growth has slowed / structural issues creeping in
15-2-2 3
6
8
10
12
Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2
GDP Growth: China
Q1 2010 - Q3 2014 Y-o-Y growth (%)
2010 2011 2012 2013 2014
10.3
9.6 9.8 9.7
9.5
9.1
8.9
8.1
7.6 7.4
7.9
7.7
7.5
7.8 7.7
7.3
7.5
7.3
4. China: China Basics – China Today
• World’s biggest land-grab
• 1.5B+ people = competition for scare
resources
• Increasingly wealthy middle-class
• Sacrifices for economic growth (bad
pollution, poor medical care)
• Developing country with modern
problems
– Obesity
– Income distribution
– Health care
– Starbucks…
• It is in this context that we are seeing
one of the biggest shifts in how a
population interacts with the financial
industry anywhere…
4
5. China is talking more on the phone: Mobile Uptake
Mobile payments in China are increasing rapidly as more and more users start to
use smartphones and payment options increase.
15-2-2 5
7.47 8.59 9.86 11.12 12.29 12.86
56%
64%
74%
83%
91% 93%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
2
4
6
8
10
12
14
2009 2010 2011 2012 2013 2014
China Mobile Phone Users and Mobile Phone Penetration: Unit
100 Million, Percentage
China Mobile Phone Users Mobile Phone Penetration
6. Chinese Phones are getting smart: Smartphone Penetration
Increased availability of faster data-services through 3G and 4G has supported an
already strong shift to smartphones.
224 266 390 449
30%
65%
88% 90%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
50
100
150
200
250
300
350
400
450
500
2011 2012 2013 2014
Smartphone sales volume and % of Overall Mobile Phone sales
2011-2014 (Unit: Millions & %)
Mobile Phone Sales Volume Smart Phones as % of Overall Mobile Phone Sales
615-2-2
7. People are doing more stuff on their phones: Mobile Internet Usage
Continued growth and availability of data and smart phones has driven mobile
internet usage setting the stage for increased e-commerce and mobile payments
715-2-2
233 303 356 420 500 527
61%
66%
69%
75%
81% 83%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
0
100
200
300
400
500
600
2009 2010 2011 2012 2013 2014
Mobile internet users and Mobile Internet Usage as % of Overall
Internet Usage
Number of Mobile Internet Users Percentage of Mobile Internet Usage
8. Buying online: E-Commerce
• In 2013, China became the world’s largest online market, surpassing the US.
China’s e-commerce industry has ballooned in the past few years, as consumers
become used to shopping online; still, it represents < 10% of total consumption
461
783
1320
1885 1840.81
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2010 2011 2012 2013 2014Q1-3
China Online Retail Market, Units: Billion RMB
815-2-2
9. This is why E-commerce in China matters
E-commerce in China is eclipsing that of the west
15-2-2 9
Comparison of China's Singles Day to America's
Cyber Monday and Black Friday US$Billion
Source: Kapronasia, company reports
Singles Day Black Friday Cyber Monday
0
2
4
6
8
10
201420132012
5.75
9.34
2.29
1.2
2.65
1.51
3.04 1.04
1.98
10. Buying Online…on your mobile: Mobile E-Commerce
Increasingly, Mobile shopping represents a growing share of overall e-commerce
98.50% 94.20%
85.50%
70.00%
57.30%
47.30% 43.10%
1.50% 5.80%
14.50%
30.00%
42.70%
52.70% 56.90%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011 2012 2013 2014e 2015e 2016e 2017e
Breakdown of e-commerce purchasing Channels in China
Mobile
PC
Source: iResearch, Kapronasia
Analysis 1015-2-2
11. Paying Online: Mobile Payment Transaction Volume
• E-commerce was specifically mentioned in the 12th five-year plan with mobile payment
being a crucial aspect of that.
• Development of information and communication technology (ICT) is also a
measurement of the performance of local governments
As measured by value and volume, mobile payments are growing very quickly in
China
1115-2-2
59
80
151 1,195 16,201
36% 89%
691%
1255%
0%
200%
400%
600%
800%
1000%
1200%
1400%
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
2010 2011 2012 2013 2014Q1-3
China Mobile Payment Transaction Value and Growth
Rate: RMB Billion
Transaction Value Growth Rate
12. Mobile Payment Preferences
Chinese consumers are gradually shifting to contactless payments including NFC.
0.8%
1.9%
2.9%
4.0%
4.3%
11.7%
17.9%
27.5%
29.2%
0% 5% 10%15%20%25%30%35%
Others
Plug-In Reader
NFC Payment
Bar Code Payment
QR Code
Mobile Phone Bundled Card
Mobile Web Payment
SMS Payment
Mobile App Payment
Source: iResearch
2012 2014
Source: Kapronasia Primary Research, 2014
0.2%
1.5%
3.7%
8.7%
9.9%
18.0%
26.2%
31.7%
0% 10% 20% 30% 40%
Others
Plug-in Card Reader Payment
Barcode Payment
NFC Payment
Mobile Web Payment
SMS Payment
Mobile App
Mobile Phone Bundled Card
Payment (Quick Pay)
Question: What type of mobile payment
method do you prefer to use?
NB: Kapronasia does not know the sample set or specific methodology that iResearch used for collecting 2012, and
so 2012 vs. 2014 data should be used as a broad / general comparison only and should not be compared directly.
1215-2-2
13. Peer to Peer (P2P) Lending
• Small and medium enterprises have been starved of cash
• Online P2P lending has been in existence since 2007, really only gained traction in
previous 4 years
• The lending solves a problem => allowed by the government
The tacit acceptance of the government of P2P has allowed the industry to grow
rapidly
15-2-2 13
14. What is financial innovation?
• May not be 100% transparent to end customers
– Credit scoring using big data => back-end
– Fraud detection
• May not be 100% sexy
– Fraud detection
• Both corporate and consumer
– Corporate – Australia real-time payments
– Consumer – Apple Pay
• The last 5 years has been a renaissance in fintech investment
– Silicon Alley in NYC
– Silicon Roundabout in London
Leveraging technology to provide a product or service more effectively to a
customer.
15-2-2 14
15. What creates the perfect setting for financial innovation?
• Government is committed to reform, but can only move so fast
– Crossing river by feeling for stones
• The government is challenged to do it themselves
– Speed
– Agility
– Knowledge
• Consumers are getting restless and want more => skipping ‘personal financial manager’
The confluence of slowing economy, reforming financial industry and fast moving
technology providers is creating a ‘perfect ricebowl’ for financial innovation.
15-2-2 15
16. What drives financial innovation?
• Although 1.4 billion customers is a lot of people chatting, it is only 1.4 billion
• Imagine if you can get those 1.4 billion to start booking taxis too => 2.8 billion
customers
• In fact, tech companies are in a massive land grab and effort to create one-stop
platforms for consumers
• Numerous examples of non-financial institutions leveraging tech to get ahead:
– Mobile payments (Alipay, Wechat)
– Big data for finance (Baifa)
– P2P Lending (Dianrong, Creditease)
• Majority of innovation helps the industry, so regulators are taking backseat…for now
• Personal financial management is new in China -> retail investors are being given tools
So many customers, need more products.
15-2-2 16
17. Bringing it all together: Platforms that Work
China’s large internet services have also provided social ‘hubs’ with integrated
payment functions, completely avoiding the need to work with MNOs and Banks
• Wechat, an online chat app from Tencent => incredibly popular in China.
• Functionality: Book taxis, Pay friends, Buy movie / show tickets, Pay bills, Mobile top-up
• Platforms are underlying innovation
1715-2-2
18. Bringing it all together: Platforms that Work – for the consumers
Websites in China are notoriously cluttered – initial focus was on supporting that –
increasing focus on fluidity
1815-2-2
19. Check Point China
• Economy is not in the best of shape, but still better than most
• Consumers are getting online and getting mobile – mainly on smartphones
• As more people are mobile, shopping and payments are following
• Younger generation is increasingly used to doing everything online
• Regulators are pushing change – 2013-2016 reforms:
– Direct Banks Implemented
– Private Banks on the way
– P2P lending continuing w/o regulation
– HK / Shanghai connect
– Deposit Insurance
– Stock Options
– Financial Futures
– Interest Rate Liberalization
– Online Finance
– Growth Enterprise Board
– Negotiable Deposit Certificates
– NFC Standards
– Credit Asset Securitization
An increasingly online / mobile user base is enabling a massive shift to online
payments and finance.
15-2-2 19
And the list goes on…..
20. Opportunities for Digital Currencies / Digital Technology
• Younger generation, and increasing the older generation are used to new technology
• QQ coins have been around for ages => population is used to virtual goods
• Solutions that focus on making something easier
• Chinese government’s attitude towards Bitcoin
• Will they regulate further?
• Law targeting virtual currency in 2009; forbade virtual currency for purchase of real
items.
• Focused on Q Coin, paid for online services such as games. However, it seemed to
be easily applied to Bitcoin
• Unlike Q coin, the Ministry of Commerce and the Ministry of Culture can’t target a
company or entity to regulate or to submit the circulation and transaction volumes
of Bitcoin.
• Is the government happy enough with the status quo? Not much has changed,
what were they unhappy about before?
China’s financial industry is still relatively immature => scope for providing new
and innovative solutions
15-2-2 20
21. Why should you care?
• Although 1.4 billion customers is a lot customers, it is only 1.4 billion
• Compare:
– Alipay 1.4 billion native potential customers => why expand?
– Paypal 250 million native potential customers (US) => they had to expand
• Western financial industries are either hampered by regulation or don’t care…
• Some have tried
– Paypal’s online money platform => closed
– Amazon wallet => closed
• Significant opportunity for domestic companies expanding abroad
China’s tech companies have a massive userbase to test financial solutions and
products at scale => lessons learned for moving abroad
15-2-2 21
22. Challenges
• P2P Lending allowed as fits with reform and helps the industry by reducing risk
• Bitcoin was speculation => didn’t solve any issues in the market
• Too many business models for too few users => demand needs to increase
• Crypto is a solution searching for a problem
• Current Bitcoin business models don’t fix much in China:
– Merchant fees are low with CUP cards
– Security no longer seems to be a concern for users
– Real time domestic payments through banks or 3rd party platforms
– Exists on its own – not tied into social
However, solutions need to fit with the government’s path for the economy and
reform
15-2-2 22
23. Conclusions
• We will look back at China’s financial industry in 5 years as the most innovative globally
• Crossing the river by feeling the stones => path to reform
• Government is not anti-bitcoin, they are just anti-risk
• Business models that will succeed are those that help the industry from the beginning,
not hurt
15-2-2 23
26. Source: Kapronasia Primary Research, 2014
NFC – Preferences and Reasons for Using NFC
Metric
Would Pick
NFC
1
Likely to
Pick NFC
2
No Impact
3
Likely to Pick
Other Mobile
Payment
Method
4
Would Pick
Other Mobile
Payment
method
5
Notes
Transaction
Speed
Convenience of
Bundle w/
bankcard
Example: Quickpay
Convenience of
wallet
functionality
Current SIM-NFC solutions
often have multiple cards in
a single mobile wallet
Simplified
Operation
Perception that NFC
payment simplifies payment
Higher Security
NFC payments’ generally
seen as safer
Widely Known
and Used
NFC marketing has helped
awareness
Broad Usage
Available solutions in the
market
Try New
Payments
Curious about new
payment methods
Used Currently for
Payment
Many users are used to
their current payment
method, so there seems to
be stickiness.
2.33
2.50
2.24
2.42
2.22
2.65
2.42
2.13
2.83
2615-2-2