CHINA’S financial regulators need to cooperate with financial technology companies to solve the imbalance in the industry and trim regulatory costs, the People’s Bank of China said over the weekend.
Regulations should ensure fair competition among fintech companies which need to help build a system to improve the efficiency of regulatory costs, Sun Guofeng, director of the PBOC’s research institute, said at the Lang Di Fintech Conference organized by US-based LendIt Conference LLC.
The imbalance is rooted in four areas — the development of various fintech companies, the allocation of data, market competition between financial institutions and fintech companies, and the capability between fintech and regulatory technology, Sun said.
“Facing the huge amount of new businesses in fintech sectors, the investment in regulations rose continuously,” Sun said.
“Imbalanced development will be apparant if regtech failed to follow the development of fintech.”
He said regulators should ensure fair competition among fintech firms and also to protect consumers.