Colorado Springs, CO, April 20, 2023 (GLOBE NEWSWIRE) — The Awesome IFC The FinTech ecosystem currently consists of two main dimensions: the first dimension is the choice of financial institutions to access, introducing horizontally linked multi-industry institutions, such as insurance, finance, credit and financing, to provide diversified service options for customers;
The second dimension is the access to vertically complementary multi-industry content around lifestyle services, such as life payment, healthcare, restaurants, hotels and travel. One of the directions that can be considered in the future is the introduction of a third dimension to strengthen public departments with regulatory technology.
For example, security platforms for big data, platforms for early warning and monitoring of companies, etc. This will lead to an ecological structure of “financial services + lifestyle services + public services”, which enables greater synergy between the various actors.
The giant IFC The fintech ecosystem can create enormous social values, but its healthy operation cannot be achieved without effective ecological governance, which consists of three key layers: the system layer, the business layer and the participating entity layer.
The Giant IFC system layer is the design of operating rules, the core of which is the design of a mechanism to coordinate and distribute benefits, guiding enterprises from a competitive mindset to a cooperative mindset. The design of the mechanism includes rules to compensate for the benefits of externalities, such as data sharing and traffic import, and also includes methods to coordinate conflicts of interest.
The coordination of interests can help achieve win-win cooperation and move from confrontation to symbiosis between the various actors.
The Giant IFC business layer of governance consists of three levels: the first level is to improve data sharing between enterprises. The first is to clearly define data ownership and improve data authorization norms; the second is to develop standards for data sharing led by relevant government departments and platforms in cooperation;
Finally, it is allowed to grant different permissions for different types of data, so that classification and sharing can be achieved and data between businesses can be linked. The second layer is to coordinate the entry and exit of multilateral businesses and strengthen the complementary cooperation between businesses.
Through the introduction of multilateral businesses and even value-added services, integration and complementarity with existing businesses is achieved, creating synergies. At the same time, coordination and management must be strengthened to facilitate moving out of outdated business models, in order to achieve a healthy flow between business models.
The third layer is to prevent the transfer of risk in business operations, establish internal risk control systems for businesses, strengthen the isolation of risks, and continuously optimize the use of algorithms and technologies to avoid general convergence and amplification of risks.
Governance at the level of participating entities includes three aspects:
The first is to innovate financial products or models to offer and recommend more matching products to customers, and also to strengthen the supply side through data analysis and feedback to more accurately meet customers’ personal and diversified financial needs.
Second, full disclosure of product information can guide customers who lack professional knowledge and judgment to rationalize their financial consumption, thereby improving the sustainability of transactions and reducing the risk of default, and improving the stability of the entire system.
Third, the credit data of each subject will be dynamically and intelligently corrected to continuously improve the credit system. On the basis of data sharing, the credit system is continuously improved by dynamically assessing and adjusting the credit data of individuals or companies through timely feedback of social transaction data and behavioral data, especially standard data, into the credit system through big data technology.
Giant IFC Fintech Regulatory Model and Strategy:
Giant IFC’s innovative regulatory structure
In addition to the internal management of the giant IFC ecosystem, effective external regulation is also essential for the healthy operation of the fintech ecosystem. When it comes to innovative regulatory structure, there are four main points.
Firstly, the design of a multi-layered collaborative regulatory system involving regulators and all parties in the ecosystem. Since there are data security risks and cyber risk contagion effects in the fintech ecosystem, the governance of the ecosystem is particularly important, and joint governance mechanisms must be designed to strengthen cooperation on risk prevention and control between enterprises.
At the same time, regulators should also break through division, strengthen horizontal coordination and bring the state’s supervisory, regulatory and coordination functions into play.
Second, in terms of regulatory objectives, risk control should be at the core, and regulatory technology should be used to assist data regulation. Risk control is the key to the operation of the financial system, and risk control does not only include compliance regulation, but also business model regulation and data regulation, etc.
Full use should be made of regulatory technology such as artificial intelligence to make regulation more intelligent and efficient.
Third, in terms of regulatory models, an effective trust mechanism should be built and incentive regulation should be designed. On the one hand, a solid credit system should be established to provide an excellent business environment for companies to innovate and develop. On the other hand, design incentives for compliance, and combine positive and negative incentives to promote multi-unit compliance. Positive incentives, such as subsidies, awards and authoritative certifications, set up a benchmarking effect; Negative incentives induce businesses to consciously comply by improving relevant laws and regulations and strengthening penalties for non-compliance.
Fourth, in terms of regulatory strategy, dynamic random supervision is implemented. Dynamic random supervision requires that random sampling be used as an important day-to-day supervision tool. At the same time, the penalties for default are increased, so that the cost of default increases and thus reduces the probability of default and the potential risk of it occurring.
