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Digital Economy and Institutional Innovations | 2022 Tsinghua PBCSF Global Finance Forum

Time: 2022-04-25 16:36 Print

Digital economy is the main economic form second to agricultural economy and industrial economy. It promotes profound changes in productivity, life style, and governance. It is a critical task for financial industry to build a new development pattern and promote high-quality development. Financial institutions should take the economic changes and support economic stability. 

With the theme of "Digital Economics and Financial Institutional Innovations", ZHANG Jianhua, director of the Financial Development and Regtech Center of THUIFR, ZHOU Daoxu, director of the Financial Safety Research Center of THUIFR, YANG Shujian, president of Bank of Beijing, LI Jun, executive director and general manager of Haitong Securities, WU Tianhua, founder and CEO of Tiger Brokers, GONG Li, general manager of corporate banking at WeBank delivered keynote speeches, respectively. WANG, Zhengwei, associate dean and associate professor of Tsinghua PBCSF, hosted the session. 

Data: the digital priority for upgrading financial institutions 


ZHANG Jianhua said that only by promoting the sharing and aggregation of data can we maximize the social value of data elements. Financial institutions have to carry out digital upgrade in order to achieve high-quality development. It is inseparable from the strong support of data. At the same time, financial institutions also require diversified data to conduct daily businesses. China is in transition period to which financial institutions should only obtain credit data through credit bureaus. Internet platforms can only provide data to credit bureaus, and is forbidden to provide the credit date directly to financial institutions. Main challenges at present include: 1) the establishment of relevant policies and procedures; 2) the incorporation of alternative data into credit rating and sharing system; 3) obtaining user authorization; 4) defining the selection of public data provided to financial institutions; 5) alignment of credit reporting data with digital development of commercial banks.

Ensure financial security and development through fintech security legislation


According to ZHOU Daoxu, fintech security is an important part of national financial security. In regard to fintech security legislation, he suggested that: 1) we should maintain a holistic approach to national security, build the fintech legislation basing on Chinese characteristics, prevent and resolve major fintech security risks; 2) we need to speed up China's fintech security legislation to better meet the needs of the rapid development and changes of fintech industry and ensure its safe development; 3) we must learn from the experience of international fintech security legislation, grasp the world fintech security trend, and jointly promote the global fintech security.

How should small and medium banks grasp the opportunities to explore digital transformation? 


YANG Shujian highlighted that small and medium-sized banks should strengthen their exploration in strategy, data, ecosystem, talent and risk-control under the opportunities and challenges in digitalization. He suggested the banks should: 1) improve top-level design of digital transformation under the guidance of strategy; 2) release the value potential of data elements with data as the driving force; 3) build an open, cooperative and win-win digital operation mode with ecosystem as the starting point; 4) maintain momentum of digital transformation with talent as the guarantee; 5) and promote digital transformation with risk-control as the bottom line.

Digital strategic thinking is key for the digital transformation of securities company


LI Jun said that digital transformation is not simply to move the traditional securities business online in digital form. It is a radical change of algorithm of financial services and products within securities company. It creatively reshapes the capital market and securities industry operation. Investment bank has gradually become a data-centric organization, with enhanced insights in market, business, and organizational management. Looking forward to the future, it is essential for securities companies to realize digital transformation by establishing digital strategic thinking, shaping the business philosophy embracing digitalization and cultivating the corporate culture friendly to digital transformation.

Fintech contribute to the development of financial inclusion


GONG Li said that digital finance and financial technology have effectively improved financial services efficiency and user experience. It significantly reduces cost and risk, extends the coverage and availability of financial services, and makes financial inclusion feasible. In the future, digital finance will transit from "improving efficiency" to "promoting fairness and sustainability", while promoting common prosperity, rural revitalization, and carbon peak and neutrality goals. More communities and SMEs will benefit from digital finance.