Digital Dollars and the Online Yuan: Comparing Fintech in the US and China
How fintech is different in the US and China?
The financial technology (fintech) sector has been a big deal for quite some time. Various indicators mirror this statement. According to CB insights, global investment into fintech reached USD 55.3 billion in 2019.
Since fintech development has passed the initial stage of brutal growth, the era of regulatory shaping is coming to an end. As a result, the growth has been accelerating over the recent years, with a plethora of outstanding startups appearing all over the world.
With around half of fintech unicorns worldwide, the US is leading the industry. A runner-up, China is making attempts to stimulate growth: in 2019, the country’s central bank published a three-year development strategy of fintech development.
The two countries will continue to lead the world in terms of fintech innovation, bringing closer more convenient, efficient and user-friendly financial services on a global scale.
In this report, EqualOcean details the differences of the market between China and the US. The financial industry is the birthplace of financial technology. Then we go deeper into the five hot sectors of the fintech industry to understand what role fintech plays in these two largest economies. Sectors include mobile payment, lending, banking, insurtech and asset management. In addition, we choose two startups with good business models and business running data in each sector to witness the latest market investment trends in China and the US. Finally, we consider how these fintech sectors will shape in the future.
Here are some of highlights of the report:
► The gap between China’s ‘Buffett Indicator’ and that of the US hit a record high in 2019.
► The difference in credit card development, payment habits and regulation environment caused the mobile payment much more waving than the US.
► Asset management is still at the starting stage in China and the demand gap is huge, while the US is pretty mature and professional financial talents are adequate.
► China’s consumer finance startups are most welcome in the lending area, as Internet giants have established their own brands.
► Unlike the US’s incumbents, who participate a lot in fintech, China's Internet giants play a significant role during fintech’s development.