The “back side” of fintech

When the development of fintech enters a new stage of development, it can no longer achieve long-term development just according to the platform logic in the traditional sense. Just look at how players are exploring new forms of fintech. If there is a summary of players’ exploration of new fintech models, the return to physical and industrial is certainly an important aspect.

How to return to entity and industry?

In the author’s opinion, the key to ensure the return of finance to entities and industries is to recognize the profound changes taking place in entities and industries, find out the new needs derived from the changes, and find the right ways and methods to meet these new needs. Ignoring the profound changes that are taking place in the entity and industry, just making wishful changes to fintech will not only fail to return to the entity and industry in a real sense, but will even bring the development of fintech to a new stage of development.

However, judging from the practice of fintech players, they only focus on the fintech itself and do not really realize the profound changes taking place in the entity and industry. As a result, when they develop fintech, they just turn fintech into a wishful existence, instead of really finding the right way and method to combine with entities and industries. On the surface, fintech players seem to have found the right way, but in reality they have hit a new dead end.

Fintech, not an independent kingdom

As we all know, one of the most important reasons for the wild growth of Internet finance in such a short period of time is that it meets people’s new needs for finance and ADAPTS to the general trend of the Internet era. In the final analysis, the rapid development of Internet finance lies in the fact that it has constructed a benign relationship with external industries. The same is true for fintech.

However, for many fintech players now, they only think and explore the new direction of fintech from the perspective of fintech, but do not take into account the profound changes taking place in the external environment. Finally, fintech has become an isolated and closed existence. One can imagine that if fintech follows this logic, it will inevitably reach a new dead end. To solve this problem, we must link the development and evolution of fintech to the development and evolution of external industries and industries. Only in this way can we find the right development logic of fintech.

In fact, a new development, led by digital, is taking place in all walks of life. No matter for Internet players, or for traditional industries, digitalization is deeply affecting and changing their development mode and operation logic. Under such a new wave of development, their financial needs are also undergoing profound and radical changes.

To sum up, simply providing financial products and services according to the traditional mode and method can not meet their needs. Only by truly taking advantage of the new evolution of fintech, can new financial products and services be derived to meet the new financial needs of the upstream industry, and the development of fintech can be truly brought to a new stage of development.

In the final analysis, fintech should bid farewell to the closed and isolated state of development, and simply define and develop itself in the mode of an “independent kingdom”. Only by constantly constructing the connection with external industries and industries, and constantly examining and developing itself from the perspective of external industries and industries, can it open new ideas for development and enter a new stage of development.

It needs to be made clear that although Internet finance is also open, its so-called opening is only in a narrow sense, only for users and traffic, but not really open with the industry and industry. For fintech, only by abandoning such openness in the narrow sense and achieving openness in the real sense, continuously penetrating into the details of the industry and industry, and continuously achieving deep contact with the industry and industry, can we truly break out of the vicious circle of the development of Internet finance and truly enter a new stage of development.

Fintech, not “one or the other”

In the past, fintech was viewed in the same “either/or” mode. The so-called “either-or” is that either fintech is classified as “finance” or fintech is classified as “technology”. The direct result of such an “either/or” understanding of fintech is to bring the development of fintech to a relatively extreme state of development.

The excessive definition of fintech by finance makes it difficult to give full play to the “technological” energy of fintech, and finally makes fintech become a similar existence to traditional finance in the past. The excessive definition of fintech in terms of technology makes it difficult to release the “financial” energy of fintech to the greatest extent, and finally turns fintech into a similar existence to Internet finance in the past.

It can be seen that it is inappropriate to define fintech either as “finance” or “technology”. Only by looking at fintech from the perspective of matching and coordinating “finance” and “science and technology” can we really grasp the essence and primitive meaning of fintech. In fact, fintech is neither a form of “finance” nor a form of “technology”, but a completely new form that integrates “finance” and “technology”.

For every fintech player, it is necessary to find the correct way and method of deep integration of “finance” and “technology”, to interpret fintech by taking into account the two elements of “finance” and “technology”, and to implement fintech by integrating “finance” and “technology”, so as to bring the development of fintech to a new stage. In the final analysis, fintech is a new type of existence that combines both “finance” and “technology”. It is a brand new species, and it is a new type of “infrastructure” in the new industrial era. By recognizing this, we can truly understand the true meaning and significance of fintech.

Fintech, not a ‘third party’

If fintech wants to truly enter a new stage of development, the most fundamental point is to get rid of the definition of industry and industry, and give up the role positioning of only the “third party”. Only in this way can fintech truly return to entities and industries. Without this, even the most disruptive and innovative new fintech models are a myth.

This is the fundamental reason why traditional finance and Internet finance cannot return to entity in a real sense. While fintech players still define themselves by the concept of “third party”, it is undoubtedly caught in the cycle of traditional finance and Internet finance. Only by giving up the definition of “third party”, abandoning the narrowness of “bystander”, truly integrating into the entity and industry, and truly becoming a member of the industry and industry, can the development of fintech be brought to a new stage of development.

To achieve this, the most crucial point is to find the “commonality” between fintech and the real industry. This kind of “commonality” is regarded as the “bridge” and “link” between fintech and the real industry, so as to realize the deep integration of fintech and the real industry and construct a deep relationship of deep integration and connection between fintech and the real economy.

In the author’s opinion, digitalization is the “commonality” between fintech and the real industry. In terms of digitalization, fintech and the real industry are no longer a relatively isolated existence, no longer an unrelated existence, no longer a clear-cut village, but a mutually circulating and transforming, mutually integrated and connected existence. With this as the beginning, the deep integration of fintech and the physical industry will no longer be a fantasy, but become a realizable reality.

When fintech no longer defines itself by the role of a “third party”, it can truly break out of the vicious circle of traditional finance and Internet finance, get rid of the mire of “finance is just finance” in the past, and find a new paradigm of finance returning to the real industry. When fintech no longer defines itself by the role of a “third party”, its function and role, as well as its form of expression, can undergo a profound and thorough change, and its development can truly enter a new stage of development.

conclusion

When the new consensus and new direction of fintech is to return to entity and industry, what we need to do is to really look at fintech from the perspective of entity and industry, rather than just look at fintech from the perspective of fintech. When fintech is no longer an “independent kingdom”, no longer an “either-or” existence, no longer a “third party”, its development can truly jump out of the traditional sense of development mode, into a new stage of development.

In such a new stage of development. Only in this way can fintech find the right way and method to return to the entity and industry in a real sense, realize the deep integration and connection between itself and the entity industry, find its new positioning and new role, and return to the entity and industry in a real sense.

If fintech only focuses on fintech itself and does not abandon the limitations of traditional definitions, then the so-called return to entity and industry is still just a slogan. When such a slogan is no longer attractive, the development of fintech will still have to start from scratch.

 

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