1209 Professor BEI, Duoguang Dr. MO Xiugen Chinese Academy of - - PowerPoint PPT Presentation

▶
1209
SMART_READER_LITE
LIVE PREVIEW

1209 Professor BEI, Duoguang Dr. MO Xiugen Chinese Academy of - - PowerPoint PPT Presentation

May 26, 2023 498 likes •775 views

CGAP April 14, 2017 Washington D.C., US Digital Financial Inclusion in China 1209 Professor BEI, Duoguang Dr. MO Xiugen Chinese Academy of Financial Inclusion, RUC Contents

slide-1
SLIDE 1
slide-2
SLIDE 2

中国数字普惠金融 指标与监测体系

即

“1209 项目”

Professor BEI, Duoguang

  • Dr. MO Xiugen

Chinese Academy of Financial Inclusion, RUC

CGAP

April 14, 2017 Washington D.C., US

Digital Financial Inclusion in China

slide-3
SLIDE 3

Current Status Why is China running ahead? Why are Fintech Unicorns running ahead? Implications to Financial Inclusion? Where to go (bearing the challenges)? Implications to Other Countries

Contents

slide-4
SLIDE 4

Phone Subscribers in China

Data Ministry of Industry and Information Technology

1.1 Digital China

96.2% 15%

  • 1. Current Status
slide-5
SLIDE 5
  • 1. Current Status

1.1 Digital China

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 100 200 300 400 500 600 700 800 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Internet Users

  • No. of Internet Users (million)

Internet Penetration (%) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 100 200 300 400 500 600 700 800 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Mobile Internet Users

Mobile Internet Users (million) Mobile Internet User as % of Internet Users

Data: China Statistical Report on Internet Development (2017), China Internet Network Information Center

slide-6
SLIDE 6
  • 1. Current Status

1.2 Digital Payment Payment

Data: iResearch

slide-7
SLIDE 7
  • 1. Current Status

1.2 Digital Payment Payment Chinese Style of Payment

  • QR Code
  • Not NFC
  • Loose regulation
  • Low requirement on

technology

  • Easily replicated
  • Highest popularity
slide-8
SLIDE 8
  • 1. Current Status

1.2 Digital Payment Payment

600mn

889mn Data: Ant Financial and JD Finance

slide-9
SLIDE 9
  • 1. Current Status

1.3 Digital Micro-Financing Micro-Financing

Ant Financial

网商银行 Mybank. com

Consumer Finance Supply Chain Financing

  • Leverage big data.
  • By End 2016, served over 5

million micro-businesses, total credit over 900 billion RMB.

  • Average loan 20,000 RMB.
  • “Wang Nong Dai”, covers 24

provinces, 139 counties and 2425 villages by mid-2016. Average loan size 44,000 RMB.

  • “Meng Yang” Project
  • Ant Credit Pay (Hua Bei)
  • Ant Cash Now (Jie Bei)
  • Over 100 million users

Data: Ant Financial

Example

slide-10
SLIDE 10
  • 1. Current Status

1.3 Digital Micro-Financing Digital-Financing

Data: Public sources, such as www.wdzj.com

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 100 200 300 400 500 600 700 800 900 1000 2014-01 2014-02 2014-03 2014-04 2014-05 2014-06 2014-07 2014-08 2014-09 2014-10 2014-11 2014-12 2015-01 2015-02 2015-03 2015-04 2015-05 2015-06 2015-07 2015-08 2015-09 2015-10 2015-11 2015-12 2016-01 2016-02 2016-03 2016-04 2016-05 2016-06 2016-07 2016-08 2016-09 2016-10 2016-11 2016-12 2017-01 2017-02

P2P Lending Activities in China

Transaction Value (billion) Outstanding Loans (billion) Net Cash Inflow (billion) Expected Yield (right)

slide-11
SLIDE 11
  • 1. Current Status

1.4 Digital Wealth Management Wealth Management

5 10 15 20 25 30 35 40 Developed by Banks Developed by Security Firms Developed by Telecom Operators Developed by Fintech Firms

  • No. of Products

Data: Public sources, such as rong360.com 0.00 200.00 400.00 600.00 800.00 1000.00 1200.00 Developed by Banks Developed by Security Firms Developed by Telecom Operators Developed by Fintech Firms

Assets Under Management (billion RMB)

Rong360 WM Platform

slide-12
SLIDE 12
  • 1. Current Status

1.4 Digital Wealth Management Wealth Management

Ant Financial Yu’e Bao

The largest online funds managing 808.29 billion RMB for more than 300 million clients by Mar- 2017. Individual clients takes 99%, 70%+ invest 1000 RMB or less.

Product Issuer AUM (billion RMB) Return of 10,000 Investment during Last Day 7-Day Annualized Return Minimum Investment

Yu’e Bao Alipay 808.29 1.04 3.87% 1 RMB Cash Express (Xian Jin Kuai Xian) ICBC Credit Suisse Fund 115.20 0.99 3.54% 0 RMB How Buy Piggy Bank (Hao Mai Chu Xu Guan) How Buy Fund 115.20 0.99 3.54% 1RMB Huaxia Huo Qi Tong ChinaAMC 55.77 0.93 3.59% 0 RMB Baidu Bai Zhuan Baidu 55.77 0.93 3.59% 1 RMB Data: Public sources, such as rong360.com

slide-13
SLIDE 13
  • 1. Current Status

1.5 Digital Insurance Insurance

0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 500 1000 1500 2000 2500 3000 2012 2013 2014 2015

2012-2015 Chinese Insurance Market (billion RMB)

Insurance Income from Internet Insurance Income from All Sources Ratio of Internet Income (right) Data: Insurance Association of China

slide-14
SLIDE 14
  • 1. Current Status

1.6 Digital Credit Scoring Credit Scoring

Financial Services Financial Services

Self-Escalating Process

E- Commerce Financial Service -- Payment Information Collected Financial Service -- Credit Scoring Financial Service -- Credit

slide-15
SLIDE 15
  • 2. Why is China Running Ahead?

Well-developed Infrastructure

  • Such as affordable and available smart phones, 4G networks, internet services, etc.
  • Widely available distribution logistics, express delivery to foster e-commerce

development

Friendly Regulation

  • Tolerable regulation
  • Develop before regulate

Innovative Spirit

  • Combine modern technology with traditional Chinese Customs such as "Red

Envelopes"

Large Population and Market Size and Unmet Financial Needs

  • Traditional financial services focus on high-end customers
  • Huge potential for penetration and development
slide-16
SLIDE 16
  • 3. Why the Fintech Unicorns (instead of traditional big players)?

Traditional big players lack innovation and entrepreneurship

  • Such as big banks and telecom companies
  • Largely state owned, lack motivation to change

Technology learned from abroad, but duly localized

  • Combine finance with e-commerce and social networks

New technology met with consumer needs

  • Good match between technology and people.
  • Technology matches with new life-style.
slide-17
SLIDE 17
  • 4. Implications to Financial Inclusion

Intention

  • Not bottom-up

financial inclusion approach

Result

  • Facilitates financial

inclusion Accessible

  • Small size of

financial products

  • Low minimum

investment and credit amount

Affordable

  • Technology lowers

cost per user

Convenient

  • Technology speeds

up the process of financial services reaching people

slide-18
SLIDE 18
  • 5. Where are we going?

5.1 Where are we going?

More than finance

  • Deeply involved in all

aspects of life: housing, travelling, eating out habit, education, medical services,

Co-

  • peration
  • Fintech & traditional

financial service providers

  • Technology plus

consumer relationship

Strategic Shifts

  • Structural changes
  • Eg. less bank branches

and staff in cities, more in villages

slide-19
SLIDE 19

2.63% 18.05% 51.32% 74.34% 92.39% 97.65% 99.25% 99.81% 100.00% 0.00% 20.00% 40.00% 60.00% 80.00% 100.00% 120.00% 50 100 150 200 250 300 350 400 0.25 0.5 0.75 1 1.25 1.5 1.75 2 Frequency CDF

Rural Household Mobiles Per Adult Distribution

Data: CAFI Household Survey in Guangxi

5.1 Where are we going?

  • 5. Where are we going?
slide-20
SLIDE 20
  • 5. Where are we going?

5.2 Bearing what challenges?

Financial Stability

Balancing innovation with risks Over-Indebtness

Digital Gap

Unable to cover everyone

“Wolf in sheep's clothing"

Be aware of illegal investing/financing activities under the name of "financial inclusion" Consumer protection and education

slide-21
SLIDE 21
  • 6. Implications to other countries

1. Infrastructure 2. Scenario Driven 3.Online

  • Offline
slide-22
SLIDE 22
  • 6. Implications to other countries

Embedded Scenarios Type 1: Through E-Commerce

slide-23
SLIDE 23
  • 6. Implications to other countries

Type 2: Through Social-Network Embedded Scenarios

slide-24
SLIDE 24
  • 6. Implications to other countries

Embedded Scenarios

slide-25
SLIDE 25
  • 2016.12.9

项目启动

  • 2017.8

开始项目 设计论证

  • 2018.3

发布第一次 DFI监测报告

  • 2017.12

完成人员招聘、 数据收集

  • 2017.4

选择试验区

5. 5.“1209 1209”项目的进展及规划

  • 我们的计划

THANK YOU!