On September 10, Fan Yifei, Vice Governor of the People’s Bank of China, delivered a speech on the new path of financial development at the “2021 China (Beijing) Digital Finance Forum”. He revealed that the People’s Bank of China will issue a new-stage financial technology development plan based on the preliminary work to guide the financial industry to steadily develop financial technology and accelerate digital transformation.
When talking about the digital renminbi that everyone is generally concerned about, Fan Yifei said that the digital renminbi still has some problems to be solved urgently, such as the rules and systems to be improved, the acceptance environment to be optimized, and the payment system to be improved. He emphasized that in terms of rulemaking, centralized management, unified cognition, and anti-counterfeiting must be the prerequisites . The digital renminbi “can neither be managed completely according to accounts, nor can it copy banknotes to request it. What should be broken must be broken, and the constraints should be broken. Be restrained.”
Fan Yifei also expressed his views on financial assistance to build a pattern of common prosperity. He said that financial technology is an important means to bridge the digital divide and solve the problem of unbalanced and insufficient development . The main ways include three aspects: alleviating the urban and rural digital construction gap, breaking the digital application gap between groups, and alleviating the digital development gap between institutions.
The following is the full text of Fan Yifei’s speech.
Fan Yifei delivered a speech at the “2021 China (Beijing) Digital Finance Forum”
Distinguished guests, ladies and gentlemen:
Hello everyone! I am very happy to participate in the China Digital Finance Forum. First of all, on behalf of the People’s Bank of China, I would like to extend my warm congratulations on the holding of the forum! General Secretary Xi Jinping pointed out that the world today is undergoing major changes unseen in a century, and technological innovation is one of the key variables. Catalyzed by “new momentum” such as data elements and digital technology, financial technology represented by digital finance and smart finance provides a “new strategy” for the transformation, upgrading and high-quality development of the financial industry; the “14th Five-Year Plan” outline It has charted the direction for the development of financial technology and drew a blueprint vision. The People’s Bank of China will issue a new-stage financial technology development plan on the basis of preliminary work to guide the financial industry to steadily develop financial technology and accelerate digital transformation. I take this opportunity to discuss five opinions on the new path of financial development for your reference.
The first is to dig deeper into the value of data and activate the endogenous power of transformation and upgrading
For the first time, the Fourth Plenary Session of the 19th Central Committee of the Communist Party of China proposed to use data as a production factor to participate in the distribution. Data has become a basic and strategic resource for financial digital transformation. From the innovative product design of “thousands of people with a thousand faces” to the financial service model of “one person, one policy”, from the optimization of business processes of “removing the waste and saving the best” to the risk and safety prevention and control of “removal of risks and security”, financial innovation and development have always been separated. Do not open the strong support of data. Financial institutions should attach great importance to data work, fully release the potential of data, and ignite the “data engine” of financial digital transformation.
In terms of data governance , establish a full-process management system covering collection, processing, analysis, and use, unify data standards and rules, do a good job of classification, build enterprise-level data dictionaries and resource catalogs, and strive to improve data accuracy, effectiveness and ease of use sex.
In terms of data sharing , adhere to the principle of minimum necessity and specialization, explore the application of multi-party secure computing, federated learning and other technologies, and standardize data sharing under the premise of ensuring that the original data does not go out of the domain, so that the data can be invisible and the value of the data is immovable. .
In terms of data application , strengthen the interconnection and intercommunication of information in the financial and public service sectors, use joint modeling, graph computing and other means to establish customer-centric data service capabilities, dig deeper into the comprehensive application scenarios of data, and realize the benefits of data to the real economy of financial services, Multi-directional empowerment for the common people’s livelihood.
In terms of data protection , strictly implement the “Data Security Law” and “Personal Information Protection Law” and other laws and regulations, establish a data life cycle security protection mechanism, and use measures such as hidden query and de-tagging to strictly prevent data misuse and abuse, and effectively Ensure the safety of financial data and personal privacy.
The second is to lay out digital infrastructure and consolidate the foundation for the development of digital finance
The meeting of the Standing Committee of the Political Bureau of the Central Committee in March 2020 proposed to speed up the construction of new infrastructure. The financial industry should follow the new trend of digital technology development, and strive to build a scientific, safe and reliable digital infrastructure, and build a “digital base” for financial transformation and innovative development.
In terms of data center efficiency , comprehensively plan and construct factors such as comprehensive function positioning, regional distribution, and power supply, accelerate the green and low-carbon upgrade of data centers, and establish and improve the intelligent operation and maintenance mechanism of multi-scenario collaboration and multi-node integrated management and control. The high-reliability, multi-level data center disaster recovery system escorts the digital transformation of financial institutions.
In terms of the expansion of the computing power system, the use of cloud computing technology to steadily promote the transformation of distributed architecture, deploy advanced technology and appropriate scale edge computing, explore the establishment of industry public computing infrastructure, and support the financial instantaneous high concurrency and high-traffic business to computing resources The demand for financial services has injected strong impetus into the efficient operation of financial services.
In terms of network communication speed , optimize the construction of a highly reliable and redundant network architecture, deepen the deployment and application of IPv6, and use 5G and Internet of Things technology to open up the four levels of “cloud management side-end” to realize network resource virtualization and intelligent traffic scheduling , Operation management is automated, and business carrying capacity and transaction flow efficiency are improved.
The third is to develop digital currency to improve the inclusiveness of financial services
The digital renminbi is an important part of the structural reform of the financial supply side, which is conducive to promoting the digital transformation of social life and production methods. The People’s Bank of China adheres to the design concept of “safety and inclusiveness, innovation and ease of use, and long-term evolution”, and steadily promotes the research and development of digital renminbi, and conducts pilot verification of real users and large-scale centralized testing in batches in multiple locations to fully test the stability of the digital renminbi business system , Product ease of use and scene applicability, and achieved initial results. At the same time, we also see that some issues need to be resolved urgently, such as the need to improve the digital renminbi rule system, the acceptance environment to be optimized, and the payment system to be improved.
In the next step, we will adhere to the principle of openness and inclusiveness, make efforts from both supply and demand, organize and continuously optimize the underlying business capabilities and basic technology platform of digital RMB, and actively empower external parties to jointly create a digital RMB ecosystem.
In terms of rule-making , based on the premise of centralized management, unified cognition, and realization of anti-counterfeiting, it will give full play to the advantages of digital RMB settlement efficiency and strong privacy protection. It can neither be managed completely according to accounts, nor can it copy banknotes to the requirements. The ones that must be broken, the ones that are bound must be bound.
In terms of technology implementation , we will give full play to the respective advantages and professional experience of designated operating institutions, continue to carry out technological iterations to maintain overall advancement, make full use of existing financial infrastructure, support interaction with traditional electronic payment systems, and promote different operating institutions’ wallets and digital The interconnection between the RMB wallet and the bank account realizes the unity of safety and convenience.
In terms of ecological construction , adhere to a two-tier operating system, study long-term mechanisms that can stimulate innovation and improve service quality and efficiency, create an incentive-compatible, fair and just market environment, and give full play to the enthusiasm and creativity of all parties involved, and explore The sustainable development model with the joint participation of industry entities and competition and selection meets the needs of a wider range of user groups and different scenarios, and enhances the inclusiveness and availability of digital renminbi.
The fourth is to develop digital credit and deepen the mission of serving the real economy
To a certain extent, digital credit complements the shortcomings of traditional financing models in serving small and micro private enterprises, farmers, and individual industrial and commercial households. The financial industry should make good use of digital credit, a “new weapon” that serves the real economy, and actively explore a new paradigm for sustainable development of inclusive finance.
One is to reduce costs and gain. Using digital technology to promote the intelligent reengineering of the loan review and lending process, based on the integration of central and Taiwanese business capabilities that can be shared and reusable, comprehensively research and judge the business status of enterprises with multi-dimensional data such as industry and commerce, taxation, and reduce R&D, operation, and risk control costs. Improve the efficiency of financing services.
The second is to improve the quality and expand the surface. Build a widely connected and accessible service network, rely on digital channels to establish the full-process “cloud-based office” and “hand-held office” service contacts, and use technologies such as the Internet of Things and satellite remote sensing to master the “digital footprint” of the entire production and operation chain of the enterprise. Reduce reliance on financing collateral and increase the availability, sinking and penetration rate of credit financing.
The third is precise drip irrigation. Give full play to the technological advantages of artificial intelligence and blockchain to strengthen the digital cognition of the production and operation entities of the supply chain of the industrial chain, accurately identify the authenticity of financing needs, dynamically monitor the flow of credit funds, and pass more diverse, smarter and more accurate numbers Credit products provide “blood transfusion and oxygen supply” for the real economy.
The fifth is to bridge the digital divide and help build a pattern of common prosperity
General Secretary Xi Jinping emphasized that common prosperity is the essential requirement of socialism. The financial industry must always take the satisfaction of the people’s new expectations for a better life as the starting point and end point. Fintech is an important means to bridge the digital divide and solve the problem of unbalanced and insufficient development . The main ways include:
The first is to alleviate the digital construction gap between urban and rural areas . Fully implement the financial technology empowered rural revitalization demonstration project, promote the construction of a new service channel of “online and offline connections, cross-financial institutions, financial and public sector integration”, and establish a comprehensive service that benefits farmers with “one point for multiple functions, one network for multiple purposes” The platform promotes the deep integration of capital flow, business flow, and logistics in the agricultural supply chain, accurately allocates financial resources to key agricultural areas and key links, and facilitates the modernization of the agricultural industry.
The second is to break the digital application gap between groups . Focus on the high-frequency financial scenes in the daily life of the elderly, ethnic minorities, and the disabled, create aging, ethnic, and caring mobile financial products that vary from person to person, use smart mobile devices to extend the reach of financial services, and continuously improve the depth and breadth of services And temperature, so that the scientific and technological innovation achievements of keeping upright and good will benefit all the people more and more equitably.
The third is to ease the digital development gap between institutions . Large-scale financial institutions should play a demonstrative and leading role, take digital transformation as an opportunity, and explore a new model of coordinated development that uses the big to lead the small and the strong to help the weak through capacity output, technological radiation, and inter-industry collaboration, so as to activate the industry’s digital business momentum. Small and medium-sized financial institutions must fully grasp the inherent advantages of “geographical, kinship, and personal relationships”, make good use of external forces and win-win cooperation to accelerate digital transformation, build differentiated competitiveness and lean management systems, and empower the healthy development of local economies and small and micro enterprises.
ladies and gentlemen! The “14th Five-Year Plan” is an important period for my country to move towards comprehensive modernization, and it is a key five years for deepening the economic strategic transformation. High-minded and high-spirited fighting spirit, it is exactly a century of grace. The financial industry must always adhere to the original heart and mission, and strive to write a new chapter in the innovative development of digital finance, and contribute financial responsibility for building a new development pattern and promoting common prosperity.
Finally, I wish the forum a complete success! thank you all!
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