The new Fintech Innovation Regulations implemented last year by the Bank of China (BoC) in a Beijing Pilot program will be extended to six more districts, with hopes of benefiting the real economy amidst global Covid-19 concerns. The decision is aligned with China’s 3-year Fintech Development Plan unveiled last year by the BoC.
After releasing the new Fintech Innovation regulations last year, the Bank of China (BoC) opted for a pilot program approach that was unveiled in Beijing. On April 27th this year they have stated their intention to extend the regulatory programs to six of China’s districts.
The extension will involve the districts of: Chongqing, Suzhou Hangzhou, Hebei Xiong'an New District, Shenzhen and Shanghai in an attempt to bolster financial systems. Ultimately, the extension aims to boost the economies of these districts struggling under the present circumstances.
They have reiterated their intentions to help SMEs mitigate financial downsides amidst the global Covid-19 pandemic.
“We are aiming to amid the pandemic situation and help enterprises to resume work and production.”
China’s Huge Appetite for Fintech Products.
The main objective of these Fintech innovation regulations is to uphold their citizens’ consumer rights. Notably, China has a colossal population with a voracious appetite for Fintech products and consumer goods.
The intentions of the BoC were made clear last year in October when they launched a certification program for Fintech products. The system was set to cover all possible angles on Chinese payment systems including point-of-sale mobile terminals, embedded application software, user front-end software, and security carriers and chips.
The fintech innovation regulations are a major cog in China’s mega plan to further foster growth in their Fintech realm.
During a conference held last year where the Fintech Development Plan (2019-2021) was discussed at length, whose scope of touched on the plans for the Fintech sector touching on guidance ideology, basic principles, development targets, key missions and guarantee mechanisms between the three-year period.
The bank has set a three-year timer to achieve one of their main objectives which are solidifying Fintech regulations which would entail coming up with a framework for implementing the regulations. According to the outline from the Bank, China ought to have come up with framework dubbed ‘the four beams and eight pillars’ of their Fintech Development.