The Internet will lead to a better finance industry, but the term "Internet finance" itself may vanish, experts said on Thursday at a seminar during the ongoing Annual Meeting of the New Champions 2015, also known as Summer Davos, in Dalian, Northeast China's Liaoning Province.
Based on the businesses of third-party payments, micro-financing and peer-to-peer (P2P) lending, China has become a world leader in Internet finance, Huang Yiping, deputy dean of the National School of Development at Peking University, told the seminar.
These new activities have affected traditional financial institutions such as commercial banks and investment funds. That trend is set to continue, said Huang.
Huang noted that the key issue of Internet finance in shaking up the traditional financial sector is whether the Internet and its associated technologies can solve the issue of information asymmetry.
Many big banks now boast that they have a vast number of branches and employees, but within 10 years, the development of Internet technologies may cut the use of physical currency and thus the need to go to brick-and-mortar banks, according to Huang.
"I am very hopeful that China will continue to liberalize, given financial inclusion is a continued priority across China, and I am hopeful that China will lead innovation in science and technology, which will allow Chinese banks to offer better services to customers," Iqbal A. Khan, CEO of Fajr Capital Group, told the Global Times Thursday.
The mobility of technology allows lenders to refine their services and products and create new ones, said Tang Ning, CEO of CreditEase, one of China's leading P2P lenders.
The use of big data and the Internet of Things will allow financial institutions to reach a larger base of customers, according to Tang.
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Based on the businesses of third-party payments, micro-financing and peer-to-peer (P2P) lending, China has become a world leader in Internet finance, Huang Yiping, deputy dean of the National School of Development at Peking University, told the seminar.
These new activities have affected traditional financial institutions such as commercial banks and investment funds. That trend is set to continue, said Huang.
Huang noted that the key issue of Internet finance in shaking up the traditional financial sector is whether the Internet and its associated technologies can solve the issue of information asymmetry.
Many big banks now boast that they have a vast number of branches and employees, but within 10 years, the development of Internet technologies may cut the use of physical currency and thus the need to go to brick-and-mortar banks, according to Huang.
"I am very hopeful that China will continue to liberalize, given financial inclusion is a continued priority across China, and I am hopeful that China will lead innovation in science and technology, which will allow Chinese banks to offer better services to customers," Iqbal A. Khan, CEO of Fajr Capital Group, told the Global Times Thursday.
The mobility of technology allows lenders to refine their services and products and create new ones, said Tang Ning, CEO of CreditEase, one of China's leading P2P lenders.
The use of big data and the Internet of Things will allow financial institutions to reach a larger base of customers, according to Tang.
Read more in Special Coverage:
