Xin Lu, vice president of the Internet Finance Standards Research Institute of China Internet Finance Association, attended the event and gave a keynote speech on "Fintech and Digital Finance New Infrastructure Construction".
Xin Lu, Vice President of the Internet Finance Standards Research Institute of China Internet Finance Association
What is the meaning of "new infrastructure"? How does fintech help the construction of new and new digital finance infrastructure? In response to these issues, Xin Lu explained his understanding and views. Finally, he also put forward thoughts and suggestions on how commercial banks can carry out digital transformation and embrace the development opportunities of the "new infrastructure" of digital finance.
The concept and understanding of "new infrastructure": digitalization and intelligence have become consensus
When introducing the concept of “new infrastructure”, Xin Lu cited the definition of the National Development and Reform Commission, “led by new development concepts, driven by technological innovation, based on information networks, and providing digital transformation, intelligent upgrading, and integration for high-quality development needs. Infrastructure system for innovation and other services". In order to better clarify the relationship between "new infrastructure" and "old infrastructure", Xin Lu made an analysis and comparison. He believes that "old infrastructure" began after the international financial crisis in 2008, with the main goal of stimulating domestic demand and economic development, focusing on industrialization and informatization. Among them, the development of 3G/4G basic communication facilities gave birth to the rise of the mobile Internet, built a new type of network space and user scenarios, and laid the foundation for the development of mobile finance and digital economy. Under the background of the Sino-US trade friction in 2018, the “new infrastructure” proposed that with the goal of economic and social transformation and upgrading, digital and intelligent development has become a consensus. The sudden new crown epidemic in 2020 has accelerated the digitalization of my country's economy and society. Xin Lu believes that the current digital revolution is rising around the world, and the digital society "the future is here." The development of digital finance should conform to the requirements of digital and intelligent development, be guided by new development concepts, supported by financial technology innovation, driven by data elements, and build a new infrastructure system for high-quality financial development.
"New infrastructure" empowers the development of the digital economy, and digital finance faces new opportunities
Xin Lu pointed out that in recent years, the contribution of the digital economy to economic and social development has increased significantly, and digital industrialization, industrial digitization, data elementization, and governance digitization have continued to deepen. Industrial Internet, intelligent manufacturing, and Industry 4.0 lead the trend of digitalization of production; data becomes an important factor of production, releasing huge value dividends; digital technology reduces economic and social trust costs and management costs, and improves modern governance capabilities and governance levels. He believes that just as finance is the core of the modern economy, digital finance is also an important component of the digital economy. "New infrastructure" empowers the development of the digital economy and provides a broad market and space for the further development of digital finance. Currently, the promotion of the "new infrastructure" of digital finance and the high-quality development of the digital economy is facing historic opportunities.
Fintech promotes the construction of three types of infrastructure in digital finance at the time
Xin Lu believes that technology is the first driving force for financial development. For example, the development of metal smelting technology has allowed the circulation of metal currency, the development of papermaking and printing technology has led to the dominant position of paper money in the currency form, and the development of financial technology has made the central government It is possible for banks to issue legal digital currencies. Fintech has become the key to driving the innovation and development of digital finance, and it is time to use Fintech to promote the construction of new digital financial infrastructure. In this regard, Xin Lu explained the three dimensions of digital finance's information infrastructure, integration infrastructure, and innovation infrastructure.
One is the digital financial information infrastructure. Xin Lu pointed out that information infrastructure is a new technology infrastructure based on the evolution of new generation information technology, digital technology, and intelligent technology. It has advanced, hard-core, and applicable technology attributes. It is extended to digital financial information infrastructure in the field of digital finance. That is, a new type of information infrastructure built with financial technology as the core and oriented to digital finance, including: a new generation of financial data centers and computing power centers, financial scene-oriented artificial intelligence, blockchain, secure multi-party computing and other innovative technology applications, new green Data center, computing power center, etc. For example, the People's Bank of China recently launched the construction of a new generation of financial data centers in Guizhou, and commercial banks established financial technology subsidiaries to carry out basic research and development of financial technology such as artificial intelligence, blockchain, and cloud computing. Xin Lu suggested that digital financial information infrastructure emphasizes technology-driven, independent innovation and bottom-level breakthroughs. It can be promoted through policy guidance, market competition, and multi-party coordination. Industrial funds, venture capital funds, etc. can play an important role in it, such as the state The IC Industry Fund is a good example.
The second is the integration of digital finance infrastructure. Xin Lu pointed out that converged infrastructure is a new type of infrastructure formed by the integration of traditional infrastructure and a new generation of information technology upgrades. It plays a fundamental, guarantee, and platform role in a specific industry or industrial field. In the field of digital finance, it is based on Financial technology planning, construction or upgrading of digital financial integration infrastructure, such as the national modern payment and clearing system, the central bank's legal digital currency DC/EP, China UnionPay, Net Union and other card-based or three-party payment transfer and clearing systems, enterprises and individuals Credit information infrastructure, financial CA certification system, third-party blockchain digital letter certification platform established by industry organizations such as China Internet Finance Association, supply chain financial digital information service platform, financial technology capability sharing platform, industry information sharing platform, due diligence Service platform, etc. The rapid development of the digital economy puts forward higher requirements for digital finance and its integrated infrastructure. Xin Lu suggested that the construction of a diversified, multi-level, and wide-coverage digital financial integrated infrastructure system should be accelerated to meet general public services and individualization. Service demand helps the differentiated, independent and coordinated development of digital financial entities.
The third is digital financial innovation infrastructure. Xin Lu pointed out that innovation infrastructure is an infrastructure that supports innovative functions and development needs such as scientific research, technology development, product development, standard formulation, and personnel training. It has the characteristics of neutrality, cutting-edge, and openness. It can be seen that it is authoritative, The credibility and influence of financial technology and digital finance innovative research and development institutions can be included in the scope of digital financial innovation infrastructure. For example, the People’s Bank of China established the Financial Technology Research Center and the Digital Currency Research Institute, the China Internet Finance Association established the Financial Technology Development and Research Professional Committee, the Internet Finance Standards Institute, and the China Internet Finance Association and the World Bank jointly supported the construction of a global digital financial center. And Peking University established a digital financial center, Tsinghua University established a financial technology research institute, etc. Based on the imbalance in my country's digital financial development research, Xin Lu suggested that multi-party cooperation, resource sharing, and complementary advantages should be strengthened in "government, industry, university, research and application", and cross-field, cross-disciplinary, and cross-institutional exchanges and collaborations should be established to create a domestic leader , A world-class digital financial innovation infrastructure platform.
Four Thoughts on the "New Infrastructure" of Digital Finance
Regarding the "new infrastructure" of digital finance, Xin Lu shared his four thoughts.
One is to further accelerate the industrialization of data elements and create new development momentum. Xinlu believes that building a secure, compliant, and unified data element platform based on secure multi-party computing, blockchain, federated learning, big data, cloud computing and other financial technologies can speed up the production and circulation of data elements and accelerate their realization Data elementization, valueization, and industrialization will consolidate the foundation for the development of digital economy and digital finance, help the supply-side transformation of the data element market, and create new momentum for transformation and development.
The second is to improve the level of financial technology independent and controllable to prevent key technologies from being "stuck". Xin Lu pointed out that the recent incidents such as the interruption of the supply of Huawei chips and the obstruction of TikTok have shown that key technologies cannot be bought, or cannot be purchased, and financial security is related to national security, and financial technology security is the first line of defense for financial security. It is necessary to take precautions and take the initiative to use financial technology to promote the construction of new digital financial infrastructure, paying particular attention to improving the security assurance capabilities and autonomous controllability of key and underlying technologies.
The third is to further develop regulatory technology and seek an effective balance between financial innovation and regulation. Xin Lu believes that financial technology and regulatory technology are two in one, and the People's Bank of China is currently organizing work related to the pilot of the financial technology innovation "regulatory sandbox", which is conducive to the coordinated development of financial technology and regulatory technology. He suggested that the establishment of a new type of regulatory technology infrastructure should be accelerated, and the "regulatory sandbox" should be further promoted on a pilot basis, integrating supervision into digital basic services, and helping to achieve flexible supervision, dynamic supervision and regulatory advancement.
The fourth is to play the role of industry organizations to promote the development of financial technology and the "new infrastructure" of digital finance. Xin Lu introduced the progress and achievements of the China Internet Finance Association in promoting the development of financial technology and promoting the "new infrastructure" of digital finance. He said that under the guidance of regulatory authorities and the support of member units, the association is further establishing and improving the ecosystem of the healthy development of financial technology in accordance with the principle of “co-construction, sharing and sharing”, which is a “new development” for the digital transformation and development of commercial banks and digital finance. "Infrastructure" injected new impetus.
Four suggestions for digital transformation of commercial banks
Regarding the digital transformation of commercial banks, Xin Lu put forward four suggestions.
One is the correct value orientation of Digital. Commercial banks must combine their own development positioning and capabilities to carry out digital transformation, make full use of financial technology to improve the capability and satisfaction of digital financial services, better meet the growing financial needs of the people, and ensure the development of the digital economy and the real economy convoy. The second is to strengthen comprehensive risk management. When a commercial bank cooperates with a financial technology company, it should incorporate the cooperative business into a comprehensive risk management risk framework, do a good job of due diligence, risk assessment, list management and continuous monitoring of the partner, and assume the main responsibility for risk management and control. The third is to accelerate the construction of standard rules. Commercial banks should follow the principle of "community first, urgent use first", formulate standard rules for the application of artificial intelligence, big data, cloud computing, blockchain, etc., do a good job in the construction and management of new infrastructure in the industry, and focus on the coordinated development of financial technology and compliance technology . The fourth is to protect financial consumers. Commercial banks should regulate the provision of financial technology products and digital financial services, promptly investigate and deal with improper behaviors that violate the legitimate rights and interests of financial consumers, and prevent new digital divides and financial exclusion due to digital transformation.
Source: China Electronic Banking Network