FinTechs in China Presentation held by Laura Mathy, Rachel Gilsoul, Bruno Mizzulinich, Markus Volk

Agenda Introduction Investment and Funding Comparison to Worldwide Market Major Market Sectors Regulations Conclusion

Problem Statement Unique features of the financial system in China with respect to FinTechs and impacts generated by FinTechs on the Chinese banking sector

Introduction Unmet Needs Easy Access to Capital Regulatory Facilitation

Structural Reasons Chinese population unbanked Market underserved by banking corporations Homogeneous, uncompetitive and unimaginative offering

Convenience Reasons Attracting fees Better online experience and functionality Access to different products and services Easy to set up and better service quality

Increase of Fintech Funding & Financing

Reasons for Increase in Funding

Different Markets for FinTechs Money Transfers & Payments Savings & Investments Insurance

Money Transfers & Payments

Savings & Investments Bai Fa Li Cai Tong Yu’e Bao

Insurance

Regulation Banks are highly regulated as they are connected to personal wealth and well- being FinTechs offer nearly same services, but are not regulated Blessing for FinTechs - Nightmare for consumers? Regulatory framework important -> committee going to be set up soon RegTechs could help and improve supervision?

Conclusion Contrast in China: Fast growing economy and slowly financial system reforms Government supports FinTechs to fill the supply gap of financial services (rural area & SMEs) It‘s on the government/supervisors to ensure that FinTechs will be a blessing, not a nightmare, for the Chinese population -> supervision will be a major task

Q&A