Every era has its own financial form that belongs to every era. This is true in the era of traditional finance, Internet finance and fintech. In fact, there is no such thing as a perfect financial form, but only a financial form that ADAPTS to the background of this era. If I can find a new interpretation for the new development of today’s fintech, the author is more willing to regard the current fintech as the financial form in the era of digital economy.
Only by recognizing this characteristic of fintech and finding out the functions and roles that fintech should assume in the era of digital economy, can we avoid copying the current development with previous concepts and bring the development of fintech to a new stage of development. By looking at the new movements of top fintech players such as Alibaba, Tencent and JD.com, we can always get a glimpse of the new changes in fintech in the coming period.
As the Internet trend fades away and the drumbeat of the digital economy intensifies, we see the advent of a series of new developments represented by new technologies, new models and new ideas. In this context, fintech also begins to show new characteristics. With this as the beginning, the development of fintech has entered a completely new stage of development.
Head players test the waters first,
Fintech is no longer ‘Internet’
All the time, players are looking for the right ways and means of fintech, even in the context of the deep shakeout of fintech. If there is a summary of the reshuffle of fintech, “deinternet” is undoubtedly a major aspect. Thus, the development of fintech has entered a completely new stage.
Traffic is no longer the ultimate pursuit. In the Internet era, we are always talking about traffic, the pursuit of traffic, it can be said that traffic, is the Internet era of the theme and lifeblood. Master the flow, is equal to the development of the Internet era. No matter what kind of Internet model, no matter what kind of industry, no matter what kind of Internet player, traffic almost plays a very important role in it.
The same is true for the financial sector.
At first, financial industry players only focused on the C-end traffic. By changing the behavior and habits of C-end traffic, they transferred the offline oriented behavior and habits of C-end users to online. Internet finance is born in such a big background. It can be said that when the era of Internet finance comes, with the help of the antennae of finance, players’ access to and harvesting of traffic has reached a new height of all-pervading. At the same time, it also promotes the improvement of financial efficiency to a certain extent.
However, when the Internet financial platform continues to explode, what we see is that the development model which only pursues the C-terminal traffic as the ultimate begins to encounter difficulties. As a result, players began to focus on the new traffic dominated by the B-side users. By shifting traffic from end C to end B, players get a new traffic dividend. In essence, such a development model with traffic as the ultimate pursuit is still lingering in the context of the Internet.
Practice has proved that such a way is also unable to achieve sustainable development. Only by really jumping out of the vicious circle of traffic and standing in a new Angle to think and explore the new evolution of fintech, can we really bring fintech to a new stage of development. Traffic is no longer the ultimate pursuit, becoming traffic, enabling traffic, has become a new choice for more and more players.
Platforms are no longer the classic model. If there must be a summary for the Internet era, platform economy, no doubt is the most appropriate. No matter what kind of Internet model, almost all regard the platform as a classic. It has to be said that in the era of information asymmetry, in the era of the contradiction between supply and demand is still prominent, to seek for new possibilities of development with the platform model, it can indeed achieve certain development. The same is true for the financial sector. When the information asymmetry is broken, the effectiveness of the platform model begins to diminish little by little.
So what we’re seeing is that more and more players are moving away from the platform model, from the matchmaking and mediating model, and looking for a de-platforming, decentralizing model. The same is true for fintech. In the past, people still use the platform model to develop fintech and find ways and methods to solve fintech. Later, all kinds of chaos showed us that only using the platform model could not improve the operation efficiency of the financial industry again, and it might even lead the development of fintech into a new cycle.
So what we’re seeing is more and more fintech players moving away from the platform model to embrace the physical and to integrate with the physical. In a word, the platform model is no longer a model of innovation that can be regarded as standard, no longer a panacea that can be tried and tested, but an existence that needs to be reformed.
For the current fintech players, they are more about seeking a way and method of deep integration with entities and industries to open new development positions. Whether it’s the new infrastructure, or the new oil and engine, the platform model is no longer the first choice for fintech players.
The Internet is no longer a panacea. In the past, no matter in the era of Internet finance, or in the era of fintech, almost all the players will focus on the focus of Internet technology, almost all the solutions to the problem stay at the level of the Internet. It has to be said that such an Internet technology as a universal antidote to the way, can indeed achieve a certain growth. This is the key to the rapid development of so many players dominated by Internet finance that we see.
However, when the Internet becomes standard equipment, especially when the Internet begins to become inadequate in transforming traditional industries, we have to look for new technologies other than the Internet technology to solve the pain points and problems that the Internet technology cannot solve. At the same time, the Internet technology itself is also undergoing a profound and comprehensive change. Internet technology begins to spawn more and more new technologies, more and more new technologies begin to become mature and perfect.
If a financial form such as Internet finance is derived from Internet technology, then a new financial form also derived from new technology is the new interpretation and definition of fintech. If there is a summary of this trend, the Internet is no longer a panacea, but a “primordial cell” that is drifting away.
The head players are the first to test the water, let us see is the advent of a new era of fintech dominated by “de-internet”. This is a fresh start for fintech. With such a fresh start, it can break away from a series of traditional elements, such as traffic, platforms, and the Internet, and truly enter a new stage of development.
A new trumpet sounds,
Fintech reaches new battleground
For fintech, the post-Internet era is a new battlefield. In such a new battlefield, fintech began to sprout new dividends, began to breed new models, began to twin new businesses. Only by recognizing the new dividends projected behind these phenomena can we truly grasp the new development opportunities of fintech and find new development dividends of fintech.
Fintech is no longer closed and isolated. If we have to find a footnote for the current development of fintech, fintech is no longer closed and isolated, no longer detached from the industry, perhaps the most critical. For fintech players, they are no longer a provider of financial or technological products and services, but a member of the real economy and industrial operation. They will participate in the operation process of the industry, and they are also enjoying the new opportunities generated by industrial changes.
For every fintech player, how to find the right way and method to combine with the entity and industry, how to establish as much contact with the entity and industry as possible, and really support and help the development of the entity and industry, perhaps will be a new bonus breaking point. Such a model may be heavier and deeper than previous forms of finance, but the dividends it unleashes are no worse.
In this context, how fintech players connect with entities and industries as much as possible, how they contribute to the development of entities and industries as much as possible, and how they break the boundaries between themselves and entities and industries as much as possible, will directly affect how much dividend they can get in such a new era. It is foreseeable that when fintech is no longer closed and isolated, in the future, those who can achieve deep integration with entities and industries as much as possible, and those who can empower entities and industries multidimensional and deeply will get as much development dividend as possible.
Fintech is no longer traditional and primitive. In fact, one of the important reasons why the development of fintech has been unable to get rid of the Internet is that it is quite traditional and primitive in terms of both the “financial” and “technological” elements that constitute it. One of the most direct results of such a traditional and primitive state is that fintech can only get those traditional and primitive development dividends.
When fintech is no longer “Internet”, what we see is that both “financial” and “technological” elements are actually undergoing a profound and thorough change. Finance is no longer finance and technology is no longer technology. While both “financial” and “tech” elements are undergoing a profound change, what we are seeing is that fintech itself is also starting to pay more and more dividends.
When fintech is no longer traditional and primitive, players should think about how to make fintech become the “capillaries” of people’s digital life, and how to make fintech become the “oil and engine” of industrial digital transformation. As players figure out how to implement and practice these features and functions, they will undoubtedly open up new development opportunities and find even more new development dividends.
Fintech is no longer singular and fragmented. In the past, whether focusing on finance or technology, fintech was a single, fragmented existence. Although such a development mode has been developed to a certain extent, the development dividends released by such a development are quite limited, and neither finance nor technology can achieve deep integration with the industry.
This is the fundamental reason why the financial form we have seen in the past can not play its maximum function and role.
When the development of fintech begins to enter a new stage, especially when fintech begins to say goodbye to the Internet, we see that it is no longer as shallow as before, no longer as a little bit of the water, but it is starting to become the whole link, the whole process, the whole system. For fintech players, they are doing much more than ever before, and they are reaping much more growth dividends than ever before.
Unlike in the past when players only made matchmaking and intermediary to get development dividends, now players are more from different nodes, different processes, different links to get development dividends. When fintech starts to develop in such a way, it actually achieves another way of deep integration with the real economy and the real industry, and such integration is the whole process and the whole link. Likewise, the dividends of their development are huge.
Fintech is undergoing a new transmutation of “de-internet”.
In such a new evolution, fintech is showing more and more new development modes and methods, and starting to release new development dividends. Only by recognizing such a evolution and finding new opportunities in such a evolution can we truly bring the development of fintech to a new stage and make a breakthrough in its development.