Current Trends in the Digitalization Process and Related Fintech-Based Businesses of the Sino-US Financial Markets

Abstract

The past few years have witnessed unprecedented developments of financial technology (Fintech), which play a crucial role in the transformation of the bank business model. Digital technologies are external enablers that exert great influence and transform the scope of the traditional banks and banking sectors. In both China and the US, financial technology plays a crucial role in their mutual financial relationships. They offer preservation, modification, and/or creation of incumbent institutions and services, but also have a significant socioeconomic impact. In the case of China the application of Fintech not only provides financial inclusion for the unbanked and financially excluded, but it also stimulates the growth of the internal market and has important implications for financial and macroeconomic stability in the country. In the US it becomes important in both dimensions, for the society as well as for the processes of further development of financial markets. It is significant that in the past, the majority of FintechFintech investments took place in the US, but nowadays China is at the same level or in some areas became even the dominant player. The Chinese Fintech sector, however, differs from the US and EU in many aspects and also different are the motives for the development of the Chinese Fintech sector. In the US digital banks are also becoming more and more popular nowadays. This financial market of digital banking is much more developed in the US, compared with the Chinese counterpart, which influences the fact that financial technology is not only conducive to the availability of financial services to the public, but above all to provide more advanced services and processes.