Analysis of Fintech Development and Its Effets on The Financial Industry in Mainland China

• Main Authors: HUNG, LIU-YI, 洪柳益
• Other Authors: LIN, LIN
• Format: Others
• Language: zh-TW
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/hja5s7

博士 === 國立暨南國際大學 === 新興產業策略與發展博士學位學程 === 107 === Science and technology has changed and influenced the financial industry more and more profoundly. In recent years, a new force named Fintech combing finance and technology has emerged. The application of Fintech will gradually become the norm in the future development of the financial industry. Not only changing the management of products, channels, tools and other repetitive working contents, it will enter the core areas of business model, organization form, incentive mechanism, and resource scope. And it will help new initiators entering the financial industry and bring new forms of competition. It is possible to integrate resources in more varied forms of organization, and therefore have a profound impact on financial services, financial depth, financial efficiency, and financial supervision. This paper takes technology development as the background and focuses on explaining the far-reaching impact of Fintech on the development of the financial industry from the two perspectives of transaction costs and information asymmetry. It specifically explains and analyzes the Fintech progress and its impact through four levels, including the impact of Fintech on the business models of financial products and services; the impact of Fintech on the organizational forms such as corporate borders and business processes; the impact of Fintech on the innovation of financial institutions and their competition strategies; and the impact of Fintech on financial risks control and its implications for financial supervision. As the advancement of Fintech has made new channels for information dissemination possible, it can achieve lower information transmission costs, faster speeds, and more convenient information dissemination. At the same time, new means have emerged in information acquisition, which helps to expand information generation, and involve wider information sources and more accurate and timely analysis. Therefore, the most central influence of the progress of Fintech on the development of the financial industry lies in reducing transaction costs and weakening information asymmetry. The combination of technology development with the financial services industry has brought about an expansion of the financial breadth, integrated more resources, and will provide customers with many new service methods and products, with a greater degree of differentiation. Also the influences brought by Fintech will gradually move from the auxiliary functions to the core functions. And as more information being produced and used, it will thereby realize more active transactions, strengthen financial depth and improve market effectiveness. Progress in Fintech will overturn many traditional financial business models, improve financial efficiency through financial breadth and financial depth, and promote the financial industry competition, especially for financial subsectors with higher transaction costs and information asymmetries. Conclusively, financial institutions need to constantly change themselves and innovate in the changing landscape brought about by advances in science and technology. Financial institutions should analyze the impact of Fintech progress on the two core issues of transaction costs and information asymmetry, and embrace those business model innovations and fulfill higher requirements of professionalism. The progress of Finetch has had a profound effect on the boundaries of financial institutions. Competitors in various sub-fields with higher levels of specialization can launch more co-opetition strategies and more cross-border competition. Financial institutions must actively use new sources of information, tap new information values, design new competitive means and strategies or use lower costs and higher efficiency to realize returns and control risks. Financial supervision also needs to start from a larger background, so as to profoundly understand the connotation of financial innovation, grasp the impact of Fintech progress on financial micro-operational mechanisms, and promote more efficient and timely control of financial risks while improving the whole financial efficiency.