China's mobile financial technology (FINTech) is inspiring the world, according to an organizer of global conferences on online financial industry.
FinTech has boomed in China as technology companies are using mobile networks to expand their financial businesses including payment, loans and wealth management for small enterprises and consumers.
"The way Chinese firms are innovating and the way they are shifting so quickly to mobile and offering services through apps is inspiring," said Jason Jones, the president of LendIt, on Tuesday, at a press conference announcing a LendIt event in Shanghai on July 17 and 18.
Jones cited Yu'E Bao, a personal finance product by Alibaba that has become the world's fastest-growing mutual fund. Established three years ago, Yu'E Bao were managing 762.61 billion yuan (117.32 billion U.S. dollars) for hundreds of millions of retail investors as at the end of March.
When international companies come to China, they have a lot to learn about mobile from their Chinese peers, he said.
Jones predicted China will dominate the online financing industry in the future. "In the next 18 months, we expect IPOs from Chinese FinTech companies including Ant Financial Services and Lufax and Zhong An. It is going to wake up the world to the fact that China is the leader and has leading companies in the industry," he said.
A LendIt ranking of the world's top 10 Internet finance companies in terms of market capitalization included four Chinese firms.
China's ongoing shift into a consumption-driven economy will also bring new growth opportunities to FinTech companies, Jones added.
However, he said, China must deal with the high level of fraud currently seen in its online peer-to-peer funding platforms.
"Despite these difficulties, the market will rebound with more dynamic innovation and improved regulation as the benefits of FinTech clearly outweigh the challenges," according to LendIt's president.
The Shanghai conference, LendIt's first in China, is expected to gather more than 1,000 investors and industry leaders.
