As the call for a return to physical finance grows louder, the evolution of fintech also takes on a new direction. With the advantage of deep connections with many industries and scenes that have been formed in the Internet era, players began to look for new ways of financial return to the entity. In this process, some people start to do supply chain finance, some people start to do digital finance, and some people start to do new finance. Either way, one thing is certain that the development of fintech is starting to get rid of the role of just making matchmaking and docking in the era of Internet finance, and start to return to the functions and roles that finance should have.
In the final analysis, the financial sector needs to return to the real economy and achieve deep integration with the real economy. Only in this way can the development of the financial sector be stable and long-term. If we only regard finance as a tool and means to harvest users and traffic, and fail to find the right way and method to combine itself with the real economy, then the so-called finance will inevitably come to a dead end in development.
The key to the healthy development of the financial industry is to get out of the flow thinking, get rid of the obstacles of the platform, and truly return the finance to its due role and position, especially to realize the deep integration of the finance with the current real economy. Without this, even the most glamorous concept of fintech is a flash in the pan. However, we should also see that the real economy is undergoing a profound change. For the financial industry, recognizing such a change and finding the right way and method to bridge it is the key to ensure that it can truly return to the real entity.
The real economy is undergoing a transmutation
In the past, when we mentioned the real economy, we usually thought of all kinds of factories, all kinds of stores, all kinds of machinery and equipment. Now, when it comes to the real economy, we are seeing a transformation taking place. To sum up, the current real economy is no longer the real economy we knew before, but is undergoing a profound and thorough evolution.
The underlying elements of the real economy are changing. When it comes to the constituent elements of the real economy, we first think of physical elements such as people and property. It can be said that these elements constitute the whole of the real economy, but also make the real economy truly become the real economy itself. In such a real economy with entity elements as the main body, what we need is to match the financial products and services.
However, we should also see that after the baptism and transformation of the Internet era, the real economy is undergoing a profound and thorough change. In other words, the real economy is no longer what we used to think it was. If the transmutation of the real economy is summarized, the internal elements of the real economy are undergoing a profound and thorough transmutation, which is undoubtedly a major aspect.
Unlike in the past, the elements of the real economy are visible and tangible elements, now the elements of the real economy begin to show more of a combination of the virtual and the real. That is to say, the elements of the real economy include both the traditional visible and tactile elements, as well as the invisible and untouchable elements. Together with physical elements, these virtual elements constitute the current real economy. When the inner elements of the real economy begin to change, a transmutation is necessary if finance wants to achieve deep integration with the real economy.
The operating logic of the real economy is changing. No matter in the traditional era or in the Internet era, the operation logic of the real economy has not changed fundamentally. In essence, the operation logic of the real economy is a process from design and production to supply and consumption. Although in the Internet era, Internet players have dealt with the operation logic of the real economy in a de-intermediate way, such an operation logic has not undergone fundamental change. Just because of this, even in the era of the Internet, the financial industry does not need to change too much, which is the key reason why the Internet finance can get wild growth in a very short time.
When the Internet era fades away, especially when the new economic wave represented by the digital economy begins to arrive, we see the arrival of a new evolution. Different from the deintermediation of the operation logic of the real economy in the Internet era, in such a new economic era, the operation logic of the real economy begins to undergo a reconstruction and reconstruction. To be more precise, the development of the real economy is no longer the development mode in the traditional sense. What we used to see as upstream of an industry could become downstream, and what we used to see as downstream of an industry could also become upstream of an industry.
When the operating logic of the real economy begins to change, a new revolution is necessary if finance wants to continue to play the role of supporting and empowering the real economy. In essence, the reform of finance should not only make fragmentary changes, but also need to construct a comprehensive and multi-angle connection with the real economy. When the development of the financial industry gets rid of the dilemma of the traditional mode and really finds the way and method to combine with the new real economy, its development can really enter a new stage of development.
The manifestation of the real economy is changing. When we think of the real economy, we usually think of it as a provider of a wide variety of products. For example, clothing manufacturers; For example, the automobile manufacturing plant; For example, food manufacturing plants; And so on. In the final analysis, the so-called real economy, in its form of expression, is actually a variety of products as the ultimate form. Even in the Internet era, they are still the providers of products and services, and their forms of expression are still mainly represented by a variety of products and services.
As the real economy begins to be transformed by new technologies, and especially as the products and services provided by the real economy begin to undergo a profound and radical change, their external forms of expression are also undergoing a profound and radical change. The clothes, cars and food of the past are no longer their only form of expression, but an aspect of the products they offer. In addition, the previous production-oriented product form began to be replaced by more consumption-oriented product form.
When the manifestation form of the real economy begins to change, the financial industry also needs a deep and thorough evolution in order to better connect the products and services of the real economy with users. Only after such a transmutation, finance can continue to play a new function and role in the bridging process of supply and consumption, and finance can continue to play a good “capillary” function and role.
Through the analysis of an event, we can clearly see that the real economy is no longer the real economy that we thought before, but began to undergo a profound and thorough evolution. In such a big background, the financial industry also needs a transmutation. Only then can finance become real, not just a slogan.
Under the change of real economy, finance also needs to change
The evolution of the real economy has put forward new requirements for the development of the financial industry. In essence, if finance is still the finance of the past, then it cannot achieve a real sense of return to the entity. Only by responding to the evolution of the real economy with the evolution of finance can we truly make the return of finance to the real economy no longer an empty talk.
The manifestations of finance are no longer conventional. When it comes to finance, we usually associate it with investment, insurance, securities and other traditional forms of expression. It is undeniable that these traditional forms of financial expression have achieved great success in the past. However, we should also see that when the reform of the real economy began to appear, these traditional forms of financial expression began to show more and more functions and roles that could not achieve a perfect bridge with the real economy.
To solve this problem, we need a deep and radical change in the way the financial industry behaves. In essence, we need to replace traditional financial manifestations with digital ones. Now, what we’re seeing with digital currencies is just the beginning. As a starting point, we will see the emergence of a new evolution of financial manifestations dominated by digital.
In the future, finance will look less like what we’ve seen in the past and more like digital. Digital investment, digital insurance, digital securities will emerge. Only when the form of finance follows the form of the real economy in a profound change, they can achieve a deep bridge again.
The supply model of finance is no longer traditional. In the past, the supply mode of finance was in the upstream of the industry, and the financial players only needed to provide financial products to the demanders. In this process, financial players pay more attention to the supply efficiency of financial products and services and the subsequent benefits, rather than to the function and role of finance in the development of the whole industrial chain. If a summary of such a financial supply pattern is made, one-time and fragmented supply is undoubtedly a major direction.
When the real economy began to change, just blindly using the traditional financial supply model has been unable to meet the needs of downstream demanders, even for the financial industry itself, also has a negative impact. The reason is that only one-time and intermittent supply cannot solve the subsequent problems encountered in the development of the real economy, which in fact increases the risks of the financial industry invisibly.
Therefore, how to replace the traditional supply model with a new supply model, so that finance and the real economy can achieve all-round, whole-process, multi-angle deep integration, is the key to ensure that finance can return to the entity and empower the entity. Otherwise, not only will finance not be able to truly return to the real economy, but it will even become more and more distant from the real economy, until finally, out of the real world.
The operating logic of finance is no longer conventional. According to the traditional understanding, finance is an independent existence outside the real economy. They do not participate too much in the actual operation of the real economy. They only need to control the real economy on the surface. A direct result of such an operation logic is that the return of finance to the real economy is only a superficial return entity, rather than a deep and multiple return entity. That’s the key reason why we’ve been talking about getting back into the real world, but finance hasn’t been able to get back into the real world.
Obviously, such an operation logic does not conform to the law of financial development, and it is also unable to achieve a deep integration of the real economy and finance. When the operating logic of the real economy has undergone a profound change, we also need to carry out a profound change in the operating logic of the financial industry. In the final analysis, we need to change the current situation in which the financial industry is merely superficial and irrelevant, and truly integrate the financial sector with the real economy.
To solve this problem, we need to change the operating logic of finance, from a fragmented and superficial development logic to a deep, all-round and whole-process operating logic. In this way, the real sense of the financial return to the entity, so that the financial and the real economy to achieve a perfect seamless integration. Only in this way can finance truly return to entity; Only in this way can finance be perfectly integrated with the real economy.
When the call for the return of finance to the real economy became louder and louder, in fact, a financial separation from the real economy began to take place. In-depth analysis of the reasons, the real economy is undergoing a profound and thorough evolution, is the fundamental reason. In such a situation, a profound change is necessary for finance to achieve its goal of returning to the real world. Undoubtedly, this is the new direction of fintech development. With the catalyst and germination of the Internet era, the return of fintech to the entity is no longer a myth, but a reality. With this as the beginning, the development of fintech can truly enter a new stage of development.