Fintech: The return of finance, the evolution of technology

When the development of fintech enters the deep water, we see the withdrawal of the development model dominated by harvesting end-C flow and the emergence of a new development model dominated by enabling end-B flow. Against this backdrop, the voice of fintech is clearly much lower than it used to be. Yet it is empowering the real economy far more than ever before.

Perhaps this is what fintech should be like.

If we stand in such a time frame today to examine and look at the past fintech, we can clearly see that the past fintech is not the real sense of fintech, it is just a synonym for Internet finance. For many players, what they call fintech is just a tool to attract and harvest traffic. In the past, fintech was loud in large part because players wanted to attract the attention of capital and traffic with such a loud volume.

It is clear that the old model of fintech development, which is only dominated by capital and traffic, cannot be developed for a long time anyway, because its essence is still Internet finance. As we have seen before, the Internet model will eventually reach a dead end, and when that model is no longer attractive for capital and traffic, it will be back to square one.

Today, we see the fintech, it is such a pattern after the destruction, rebirth.

By in-depth analysis of the characteristics and internal logic of the current fintech, we may understand what is the real meaning of fintech, and we may straighten out the internal logic of the development of fintech. Starting from this, we can truly find our own new development path in the development process of fintech in the future.

Fintech is a return to finance

Let’s go back to the era when Internet finance was still hot. At that time, we saw the derivation and emergence of various financial species. Almost every process and link of people’s production and life can be found in the Internet finance. Suitable for a variety of Internet financial species, a variety of Internet financial platforms, began to emerge. In this case, what we are seeing is a new wave of development dominated by the acquisition and harvesting of traffic. Undeniably, the diversified Internet finance has greatly satisfied the various financial needs of users. However, it has also taken finance off the right development track, and finally made finance separate from finance itself, and become a tool for Internet players to obtain and harvest traffic.

When finance is separated from finance itself and no longer integrated with the real economy, its development will deviate from the correct development track. The reason is that only when finance is combined with the real economy and deeply energizing the development of the real economy, can its own functions and roles be given full play and can it continuously save energy for its own development. When Internet finance becomes a tool to acquire and harvest traffic, it just tells us that such a so-called new species of finance has gone on the wrong path of development.

Later, the development of Internet finance proved this point for us. Therefore, if the evolution of finance is to be sustainable, if the development of finance is to be sustainable, we must bring finance back and reshape finance. It is against this backdrop that fintech begins to emerge. However, when fintech first appeared, players still had illusions about it. They still tried to capture and harvest traffic to continue their development, and still let fintech act as a “guardian” to maintain the development of the Internet. However, facts have proved that fintech is not a synonym for Internet finance, nor a cloak for Internet finance. It must go out of a development mode completely different from Internet finance to achieve long-term development.

Fintech, after all, is the return of finance.

What it needs to do is to allow finance to return to its supposed function and role, and what it needs to do is to let finance and the real economy once again realize communication and connection. It is worth noting that in the process of such a return, if fintech players still rely on traditional logic, traditional mode, traditional form, it is bound to be unable to achieve the true sense of return.

Only with the help of new forms, new models and new logic can fintech truly return.

The reason is that the real economy has undergone profound and comprehensive changes. Under this change, their demand also began to change. For fintech to truly return to the real economy, it will need a profound and radical change in itself. Only in this way can it truly return to the entity and serve the entity.

Fintech is a technological evolution

Although the essence of fintech is still to return to finance and embrace entities, such a return and embrace cannot be realized without the help and evolution of science and technology. Therefore, if we want to look for the internal development logic of fintech, the key may be to recognize the function and role of technology, and the twinning and evolution of technology.

As we all know, in the Internet era, the function and role of Internet technology is to construct a set of brand-new system. Under such a system, the development model in the traditional sense begins to be overturned, and the Internet-like business model becomes the mainstream. However, we should also see that what Internet technology has constructed is a development model of virtual economy dominated by platform economy. Under the influence and change of Internet technology, what we see is the derivation and emergence of the dual economic structure represented by online and offline.

In that age of information asymmetry, especially in such an age where the connection of information is not complete, it is possible to achieve certain development just by using Internet technology to match and mediate. However, when the information is greatly enriched, especially when the redundant information begins to emerge, if we still only rely on the Internet technology, it is bound to be unable to achieve long-term development. So what we’re seeing is a whole bunch of new technologies coming out. Big data, cloud computing, AI and blockchain are almost all born in this context.

As these new technologies begin to mature and mature, we are seeing a new wave of development led by implementation and practice. So far, we’ve seen a lot of industries, a lot of scenarios that are linked to these new technologies, and in that connection, we’ve seen a lot of new species.

In the author’s opinion, one of the important reasons why fintech can withstand the baptism and continue to play a role in the new development stage is that it draws new energy from the evolution of new technologies. Rather, it has found new ways and means of returning to the physical and enabling industries from new technologies.

If the essence of fintech is summarized, the author is more willing to conclude that it is a new species derived from the combination of technological evolution and maturity with finance. In other words, the primary driving force of fintech lies in the landing and application of new technologies. When new technologies begin to mature and land, what we see is that they find a new way to return to the entity and the industry after deep integration with finance.

Through this, we can clearly see that fintech actually has nothing to do with the Internet, and its real impetus lies in new technologies. It is clear that when the dynamics of fintech start to change, if we are still closing the loop with Internet-like business models, it will lead to a dead end for fintech development.

Observing these new technologies and marking the new changes taking place in Internet technologies, we can clearly see that what fintech really should pay attention to is no longer simply to be a platform, no longer simply to create a center, but to constantly seek a deep integration with the real industry and constantly help the evolution of the real economy.

It is the continuous evolution and transformation of science and technology that finally leads to the development of fintech in such a direction and finally lets fintech get rid of the stumbling block of the Internet. If there is no technological evolution, if there is no technological twin, then fintech will not return to the development track of embracing and empowering entities in any case. Likewise, it still has further to go in its Internet-style development path, and it still has more detours to make.

Only by recognizing the relationship between fintech and “technology” and truly finding a new development model under the background of new technology, can we truly understand the current development direction of fintech, find a new development way of fintech, and truly break out of the Internet style development cycle.


What is clear is that a new wave of embracing the physical and returning to the physical is taking place in the fintech industry. In fact, the emergence of such a new wave of development is not an accident, let alone a new generation. Ultimately, it comes down to the idiosyncrasies of fintech itself. Because the so-called fintech is a return to finance and an evolution of technology. Only by realizing this and using it to find a new way for the development of fintech, can we really jump out of the vicious circle of the development of Internet finance and enter a new stage of development.


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