China-Singapore Jingwei Client, September 10 (Zhang Yanzheng) "While digital finance brings convenience to financial consumers, it also exposes many problems." September 10, President of China Finance Association, Chinese People Zhou Xiaochuan, the former president of the bank, stated at the 2021 China (Beijing) Digital Finance Forum that while encouraging the development of digital finance, the principle of licensed operation in the financial services industry should be adhered to. The basic conditions for license include: sufficient capital and resistance to risks Competence, professionals, and knowledge of the rules.
Photo courtesy of the organizer Zhou Xiaochuan, President of the China Institute of Finance and former President of the People's Bank of China
Zhou Xiaochuan said that in recent years, with the development of technology, financial institutions have been more proactively using technology to empower businesses, enriching financial products and tools, improving the efficiency and inclusiveness of financial services, continuing to promote the digital transformation of financial institutions, and helping to alleviate poverty. Much progress has been made in supporting epidemic prevention and fighting epidemics.
However, with the development of digital technology, digital finance currently faces some challenges.
First, while digital finance brings convenience to financial consumers, it also exposes many problems. For example, some platform technology companies use digital financial innovation slogans to violate compliance, legitimacy and risk control conditions. Financial services are carried out through Internet channels. Functionally speaking, the financial attributes of some businesses have not changed, and the nature of the business engaged in such intermediary financial services has not changed. This may bring about fair competition and financial stability risks. .
Therefore, while encouraging the development of digital finance, the principle of licensed operation in the financial services industry should be adhered to. The basic conditions for license include: sufficient capital, anti-risk ability, professionals, and an understanding of rules.
The second is to attach importance to data security and privacy protection to prevent telecommunications and payment fraud.
In terms of legal protection, personal privacy is protected by laws that can define the ownership of personal information subjects and the behavior space of related personnel.
In terms of technical realization, it is necessary to ensure that personal privacy is not violated through data processing, calculation methods, and management techniques.
In terms of data governance, both institutional innovation and technological innovation must be adopted, and monopoly and disorderly expansion of capital must also be prevented.
The third is how to consider reducing the risks of money laundering and terrorist financing brought about by the operation of new technologies.
Take anti-money laundering as an example. In recent years, traditional supervision methods are no longer sufficient to deal with increasingly complex money laundering activities. For example, anonymity makes it difficult to trace the source and flow of funds, and the risks of using the system to launder money are repeatedly prohibited.
Similarly, many data transactions on the dark web and the deep web, including drug dealing, trafficking in fake documents, human trafficking, and illegal gambling, should be strictly controlled.
The use of emerging digital technology in supervision can play a more important and critical role in anti-money laundering customer identification and illegal transactions.
Regulatory agencies and subjects of anti-money laundering obligations must use new technical means to strengthen supervision and fulfill their anti-money laundering obligations. This is also a future development trend.
The application of regulatory technology should be strengthened, and big data, artificial intelligence, cloud computing and other technologies should be actively used to enrich financial regulatory means, and to enhance the ability to identify, prevent and resolve cross-industry and cross-market risks.
(Zhongxin Jingwei APP)
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