Where is the new future of fintech? Perhaps this is the question on the mind of anyone who still has faith in fintech. Reviewing the derivatives and development of fintech, it is not difficult to see that the real future and direction of fintech is to return to entity and industry. Therefore, if we want to look for the new future of fintech, it may be the new future of fintech in the real sense if we want to achieve a new species of finance that returns to entity and industry.
Easier said than done. People have always been exploring new ways of financial return to the entity and the industry, but they inevitably fall into the vicious circle of traditional Internet finance, and finally make the so-called return to the industry and the return to the entity come to nothing. As new technologies mature and new models are gradually implemented, the new future of fintech is moving from ideal to reality step by step.
At present, the integration of virtual economy and real economy is becoming deep and comprehensive, the new paradigm of fintech is emerging. Supply chain finance, with its natural links to industry and the real economy, is the new future of fintech. It is foreseeable that, starting with supply chain finance, the development of fintech will truly enter a new stage of development.
Supply chain finance, the new answer of financial return to entity
For a long time, people have been looking for ways and methods of financial return to the entity, no matter in the era of Internet finance, or later in the era of fintech, no matter. However, although people have been looking for, but have not found, finally, people’s exploration and practice, or inevitably come to a dead end.
In-depth analysis of the reasons, we can see very obviously, deviated from the natural connection with the industry and entity, just from the perspective of the third party to explore the way and method of financial return to entity, finally let the so-called “financial return to entity” become a gimmick and marketing means. To solve this problem, we must find a way to combine with industry and entity, and then explore a new paradigm of financial return to entity.
Taking supply chain as the entry point to find a new way of financial return to the entity has become an inevitable choice. For those technology giants born in the Internet era, they are no longer the platform and center in the simple sense, but become a part of the industry, they have long been integrated with the industry. In such a situation, it is undoubtedly an excellent choice to give full play to their seamless connection with industries and entities, all-round and multi-angle connection, and then map it to finance.
It is in this context that we see more and more technology giants start to look for the new future of fintech with supply chain finance as the entry point. By virtue of their natural connection with industry and real economy, which has been constructed in the Internet era, coupled with new technologies and new models, the dream of financial return to the real can be realized. Just because of this, supply chain finance is becoming the new answer of financial return to the entity.
The perfect interpretation of supply chain finance, finance and technology
As to whether fintech is finance or technology, everyone will always give different answers. For financial players, they usually look at it from the perspective of finance. In their opinion, fintech should be classified into the category of finance. For tech players, who usually think from the perspective of technology, fintech should be classified into the category of technology. In fact, both views are biased.
When the development of fintech has entered a new cycle, especially when the integration of finance and technology is becoming deeper and better, it is not accurate to simply regard fintech as finance or technology. In my opinion, only by finding the right way and method to perfectly interpret the two elements of finance and technology can the development of fintech be truly brought to a new stage of development and find a new future for the development of fintech.
When supply chain finance began to emerge, we saw a perfect interpretation of both financial and technological elements. Supply chain finance itself has the characteristics of finance, and they have both functions and characteristics of finance. One of the most important reasons why there are so many pain points and problems in the past supply chain finance is that it only supplies financial products and services in traditional ways and methods. It is obvious that only the traditional ways and methods to define supply chain finance and interpret the new ways of supply chain finance cannot give full play to the functions and roles of finance to the greatest extent in any case, nor can it meet the new financial needs constantly emerging at the demand side in any case.
Only when such problems of supply chain finance are solved and its supply is made more fashionable and more able to meet the needs of industrial end by means of science and technology, can it truly return to the entity and empower the entity. Just under such a background, supply chain finance began to emerge. It can be said that in the new supply chain finance, we see a new way to interpret finance and technology. Similarly, in the case of supply chain finance, people have repeatedly sought to exist in the past, this moment has been perfectly realized.
Supply chain finance, a cure for the Internet’s ills
Although fintech has been questioned by the outside world, we still cannot deny that it is the new future of financial development. When we think about the internal reasons why fintech encounters so many doubts, we can obviously feel that the fundamental reason is that we can’t get rid of the obstacle of the Internet and hesitate and linger in the mire of the Internet all the time. It can be said that the key is to solve the problem of fintech, get rid of the hindrance of the Internet and cure the problem of the Internet.
So what is the problem with the Internet? In my opinion, the most prominent manifestation of the Internet’s chronic disease is that it simply focuses on platforms and traffic, simply stays out of the way, and simply lacks the determination to embrace industries and entities. Therefore, when fintech players try to land and practice the return to the entity and the return to the industry, they naturally fall into the Internet-style dilemma.
In order to get rid of the outside world’s doubts about fintech, and to completely bid farewell to the development of fintech and concept and marketing, the most critical point is to cure the disease of the Internet, is to find a ladder out of the trap of the Internet. When supply chain finance began to emerge, fintech was able to cure the stubborn disease of the Internet.
For supply chain finance, its internal requirements and essential characteristics determine that it must have all-round and multi-angle contact with industries and entities, and it must give up the interconnected platform mode and traffic thinking. It can be said that from the moment of its birth, supply chain finance is doomed to say farewell to the Internet and choose a new development model completely different from the previous fintech. The cure for Internet finance that fintech players have been looking for, but have been unable to find, has been realized in supply chain finance. With this as the beginning, the development of fintech can truly enter a new stage of development.
It is not appropriate to define the new future of fintech simply by definancialization or simply by deteching. What we need to do is to find a right way and method for the new future of fintech to perfectly play the functions of finance and technology, to find a right way and method for the real return of finance to the entity, and to find a medicine that can cure the intractable disease of the Internet. Only in this way can the development of fintech truly enter a new stage of development.
It is in this context that we are seeing explorers, represented by financial players and tech giants, start to explore fintech. After a period of trial and error, supply chain finance has begun to make this ideal of fintech possible. So, what we see is that more and more players begin to focus on the focus of supply chain finance.
Predictably, when the focus on supply chain finance, it will open a window for us. Through this window, the magnificent picture of fintech is being presented to us bit by bit. With this as the beginning, the new future of fintech is really coming to us.