Chinanews.com, Beijing, December 5th (Liu Wenwen) Siddhartha Tiwari, chief representative of the Bank for International Settlements Asia-Pacific region, stated at the 18th International Financial Forum Annual Conference on the 5th that large-scale digital platforms are currently entering the field of financial services The momentum of the company is very strong, bringing many benefits to the vast number of financial consumers, and also bringing three new challenges to the financial sector.
Tiwari pointed out that one of the most important features of the digital economy is the rise of large digital platform companies, which have become an indispensable part of daily life.
He went on to say that the momentum of large-scale digital platforms entering the financial services field is very strong.
In just a few years, large technology platforms have now accounted for 94% of China's mobile payment market.
"The penetration rate of the services of these big technology platforms in the financial sector is getting higher and higher, bringing many benefits to the broad masses of financial consumers. According to the Bank for International Settlements research, big data platform credit companies will quickly use big data analysis and machine learning. Grant loans, especially to help small and medium-sized enterprises obtain loans. Large-scale technology platforms have reduced credit costs and further promoted the development of inclusive finance around the world."
But he also pointed out that large-scale data platforms have brought three new challenges to the financial sector:
For central banks and financial regulators in various countries, the first direct challenge is the challenge surrounding financial stability.
Large-scale technology platforms have huge advantages in the use of data, and this advantage in data brings about network effects.
But it also makes the entire financial industry more and more dependent on giants, making the financial system more vulnerable to threats and attacks.
The second challenge is the challenge in the field of fair competition and anti-monopoly.
Thanks to its business model, leading technology, etc., large-scale technology platforms have some competitive advantages.
However, in many cases, due to insufficient supervision in some countries and regions, or the existence of regulatory arbitrage, the situation may be more complicated.
The third challenge is the challenge surrounding data governance.
Because data or information itself is a kind of capital, it is essential for the business model of large-scale technology platforms.
Large-scale technology platforms hope to obtain as much financial consumer data as possible, which poses challenges for data regulators.
"These three challenges require public decision-making agencies to respond. The goal of the public sector is by no means to curb innovation, but to promote innovation, and find the best balance between the benefits of innovation and the potential risks." He said.
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