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Low profit, light assets, quantification, innovation and compliance have simply changed the payment and settlement methods of traditional financial institutions

By means of big data and technology to create the new drive, intelligence, convenience and low cost has become Fintech notable features make it fast "spike" of traditional banking services, covering more and more traditional financial services not covered by the crowd. The World Bank's previous statistics show that 2.7 billion people worldwide still do not have any formal financial services. The urgent need for inclusive finance is one of the reasons for Fintech's rapid development.

Value, integration and intelligence are the latest development directions of bank customer service systems. The first is the transition from " customer service " to " customer operation " , and diversified operation-driven services are more valuable ; the second is the transition from " single-contact service " to " full-contact collaboration " , and omni-channel integration-driven services are more integrated ; third is from " human services " to " intelligent customer " transformation, smart customer service-driven services are smarter.

JP Morgan Chase Group, Bank of America and Wells Fargo Group have downloaded the most mobile apps, with more than 60 million mobile users , and 90% of Danish smartphone users have downloaded Danske Bank’s mobile payment applications. DBS Bank Ltd. recently launched Digibank , a mobile banking service in India , which uses government-issued electronic identification cards to provide paperless, signatureless and branchless banking services.

Blockchain (distributed account) digital currency, cross-border payment and settlement, bill and supply chain finance, securities issuance and trading, and customer credit and anti-fraud can all be enabled by the blockchain. However, they are still in the initial stage of development, and the application effect has yet to be tested in practice. The large-scale application of this type of technology has high requirements on system resources and hardware investment, is not economical in operating costs, and is uncertain about the effectiveness of privacy protection. At present, it is only developed and applied in a small area in a limited area or institution. Eventually, to achieve widespread use in the financial system, many technical and risk management obstacles need to be addressed. If it is widely adopted in the financial field, it will have a fundamental impact on the financial infrastructure such as the current financial business model and payment clearing system . Among them, the payment industry may become the first field to apply this type of technology. The impact on financial stability is unclear, and it may pose a major challenge to regulation in the future . For example, the " multilateral mutual trust " and " decentralization " features of this technology may reduce users' dependence on traditional financial intermediaries and exchanges, such as banks, and affect the market position and competitiveness of existing financial institutions ; more foreign trade will increase the difficulty of financial supervision ; in addition, some technology companies may also get involved in financial business without supervision , affecting fair competition and financial stability.

Hong Kong Monetary Authority to consider implementing regulatory sandbox ( Regulatory Sandbox ). For financial innovation products or services that need to be observed within the existing regulatory framework, the regulatory authorities are authorized by law to allow Fintech companies use real or simulated market environment for business testing under a limited business license, which based on the degree of business risk, impact, and moderately simplified access standards and processes ,. After testing shows that it is suitable for full promotion, it can further obtain a full license in accordance with existing laws and regulations and incorporate it into the normal regulatory system. Its nature is similar to China's pilot mechanism. In practice, many fintech companies have decided to give up further obtaining financial licenses because they have learned more about the strictness of financial regulatory standards and related compliance costs after trying to regulate the sandbox mechanism . 

Artificial intelligence can improve the user experience and the convenience, friendliness, and intelligence of human-computer interaction. This is the unique charm and ability of Fintech compared to traditional finance.

The Hong Kong Government of China established the Steering Group of Finnish Financial Technologies in April 2015. The group issued a research report in February 2016, and put forward a number of policy recommendations to promote the development of Hong Kong as a fintech center.

China's market credit is seriously inadequate and the demand for credit is considerable. The future economy will be a credit economy. The guarantee agency operates risk, and the output is credit. Establish a set of scientific and effective risk identification (credit investigation and solicitation), risk measurement (quantitative and qualitative analysis of risk) risk grading (risk evaluation), risk prevention (counter-guarantee measures), risk control and mitigation (risk handling). It is the basis on which a guarantee company depends.