Asia Insights Reports

SCMP’s Fintech Report Shows China Is Poised to Become the First Cashless Society

The South China Morning Post released its inaugural China Fintech Report, a comprehensive resource on the latest trends and future trajectory of the world’s largest financial technology ecosystem.

The report provides essential investment insights and market analysis of the future of this rapidly growing sector, providing a key source of competitor analysis and learnings for traditional financial services. China’s massive domestic financial market has an estimated 87% of consumers using fintech services, a US$29 trillion (200 trillion yuan) mobile payment market in 2019, and the largest global market for online securities trading.

Key findings of the report include:

  • China poised to become the first cashless society: The shift will be mobile-first, with mobile payments already accounting for four out of every five payments and more than half the value of all non-cash retail payments in China.
  • Massive growth potential for online wealth management: Personal investable assets in China are estimated to grow at a compound rate of 10% from US$23 trillion (160 trillion yuan) in 2019 to US$42 trillion (287 trillion yuan) by 2025, with US$10 trillion (69 trillion yuan) expected to be invested via online platforms by 2025.
  • Expanding market for insurtech: Online insurance premiums currently account for less than 8% of total Chinese insurance premiums, suggesting the sector has a long way to grow as China overtakes the US to become the world’s biggest insurance market by the mid-2030s.
  • Blockchain a national priority: China’s banks are ramping up blockchain use with applications in SME lending, risk management and operation efficiency, while China prepares to launch the world’s first sovereign digital currency, with a large-scale rollout expected to come before China hosts the 2022 Winter Olympics

“The fintech companies of China, which are already pushing boundaries and setting the bar higher than any other company anywhere else, are expected to expand beyond Chinese shores into the broader world,” said SCMP’s Business Editor Eugene Tang. “The coronavirus pandemic, which has led to paradigm shifts in the way humans earn and pay, will only accelerate the rise of fintech, with increased investor and consumer appetite for online financial services.”

For more information and to view the report in full click here.

Author

  • Polly is a journalist, content creator and general opinion holder from North Wales. She has written for a number of publications, usually hovering around the topics of fintech, tech, lifestyle and body positivity.

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