In the past, people have been vague about what fintech really is. One of the most direct results of such a vague understanding is that the development of fintech has entered the development track that should not belong to it. Many of the ways we see fintech as a marketing tool are direct manifestations of this phenomenon.
It has been proved that merely treating fintech as a concept without finding the real implementation and practice of fintech will only lead the development of fintech into a dead end.
As a result, we’ve seen a shakeout in fintech, and we’ve seen a lot of fintech players retreat, even those at the top. How to do a good job in fintech and how to make fintech live up to its name is undoubtedly an important topic for every player who tries to make a difference in fintech. Only in this way, fintech will not just make wedding clothes for others, but can really live their own appearance.
After a long period of exploration and practice, the development of fintech has finally found a new way suitable for its own development. Compared with the past when fintech was just regarded as a concept, fintech finally has a way and method that can be landed and truly give full play to its own functions and effects. It can be said that just from this stage, fintech has entered a new development track of its own.
For such a profound change taking place in fintech, many people see it as a metamorphosis. In my opinion, this is not a metamorphosis, but the beginning of fintech to truly be itself, to truly return to its rightful place. In other words, only such fintech is the true sense of fintech.
Back to the physical, the essence of fintech
Looking at the new fintech ventures today, it’s clear that almost all players are focusing their fintech development on a return to the physical. Many see the return to physical form as an innovation in fintech. In my opinion, this is not an innovation, but fintech should be, it is more like a return. So going back to the physical is what fintech is all about.
Why do you say that? A hint of this can be found in the two components of fintech: finance and technology. No matter finance or science and technology, their essence is actually a kind of infrastructure, their greatest function and significance is to support the development of the real economy. If we deviate from this point in the process of implementation and practice of fintech, and regard fintech as above or even apart from the existence of the real economy, then fintech will inevitably come to a dead end.
In the past, we’ve seen so much of the fintech chaos, we’ve seen so much of the grandiose concept of fintech, in the end, it’s not going back to the physical, it’s going out of the physical, harvesting traffic. It can be imagined that such a development model of fintech cannot achieve long-term development in any case. This is the key reason why fintech will enter the dead cycle of shuffling. Only when the essence of fintech is attributed to the development direction of returning to the entity, can its development truly embark on its own development track.
Connecting virtual and real, the only way to fintech
As for the function and role of fintech, different people will always give different answers. For the development path of fintech, different people will always have different solutions. If looking for the only way to fintech, the author believes that connecting virtual and real, may be its only way.
The so-called connection between virtual and real economy is to maximize the functions and roles of the virtual economy and the real economy, so that the two exist in isolation or even opposition to each other, and become mutually coordinated and common development of the existence. In my opinion, this is the only way for the development of fintech, which is an important reflection that the development of fintech has really entered its own development stage.
From a financial point of view, as well as from a technological point of view, they are virtual. However, if only stay in the virtual itself, but not really achieve the deep integration with the real economy, then, their functions and roles are in any case can not get the maximum extent of play. To give full play to their functions and roles, it is necessary to return to the entity and the industry. In this process, the function and role of fintech players began to show.
For fintech players, what they connect with one hand is the virtual economy, and the other hand is the real economy. It can be said that the virtual economy and the real economy are perfectly connected in their body. With fintech, the combination of virtual economy and real economy is no longer an impossible imagination, but a new existence that can be landed and realized. It can be said that the connection between virtual and real has become the only way for fintech to truly play its function and role.
Farewell to platform and hub, fintech in its truest state
Simply defining fintech in terms of platform and hub will never make fintech itself. This is the key reason why so many fintech players, as we’ve seen in the past, have come to a dead end and struggled to break through. In short, platforms and hubs are not the real state of fintech.
In the past, one of the most important reasons why so many players still see platform and hub as the form of fintech is that they are still using the logic of the Internet to implement and practice fintech. On paper, they are doing fintech, but in essence, they are still doing Internet finance in the name of fintech. This is the key reason why fintech has encountered so much regulation.
The truest state of fintech is not platform and center, but a deep, comprehensive and multi-dimensional connection with entities and industries. When fintech is deeply integrated with entities and industries, the essence of finance and technology can be presented. When fintech is deeply integrated with entities and industries, the functions and roles of finance and technology can be given full play. When fintech is deeply integrated with entities and industries, finance and technology have the opportunity to be themselves.
When fintech is deeply integrated with entities and industries, the development model of platform and center will inevitably be abandoned and replaced by a de-platformized and centralized existence. It is foreseeable that in the future, the players who can really make a difference in the fintech industry will be those who can truly say goodbye to the platform and center, and truly achieve deep integration with the industry and industry.
Integrating finance and technology, the inherent requirements of fintech
Simply adding finance and science and technology together, and putting fintech together, will not bring the development of fintech to a new stage in any case. In essence, when the two elements of finance and technology are not perfectly integrated, such fintech is not so much fintech as a kind of Internet finance. Only by achieving the perfect and deep integration of finance and technology can fintech truly be itself.
From this perspective, we look back at the path that fintech has taken in the past. It is not difficult to find that so many fintech models we have seen in the past either simply combined finance and technology, or regarded finance and technology as a tool and means. By simply adding finance and technology, fintech has become a marketing concept. Players aim to use fintech as the name of Internet finance. Considering finance and technology as a tool and means, fintech becomes a way and means to harvest traffic, but the object of traffic changes from end C to end B.
In order to let fintech be itself and return to itself, we need to achieve the perfect integration of finance and technology and find a “middle way” between them. So what exactly is the “middle way” between finance and technology? The author believes that digitalization is the “middle way” between finance and technology.
The new form of fintech we see now is actually more of a “middle way” that combines the functions and roles of both financial and technological elements. If there is a summary of such a new form, digital, no doubt is more accurate. When finance and technology are perfectly integrated in digitization, fintech can truly be itself.
When digitization becomes the manifestation of fintech, the return to industry and entity will no longer be just a concept, but an existence that can be implemented and implemented. In addition, the digitalization of the real economy and industry also provides new opportunities for fintech to play its own functions and roles. When such a two-way flow is formed and the so-called fintech returns to the entity, the enabling entity will no longer be just a good wish, but a real existence that can be landed and time.
After constantly reshuffling and adjusting, the development of fintech finally began to be itself and began to return to its rightful position. For fintech, this is a good thing.
Only in this way, its development can bid farewell to the previous development mode of the Internet and truly return to its own development mode. Only in this way can its development get rid of the dream of lying and earning money like Internet finance and truly find its own development position. Only in this way, its development is not just a fleeting concept, but can become a deep connection with the industry and production of the existence; Only then can fintech truly be fintech.