China’s burgeoning pecuniary technology industry went through plenty of ups and downs last year, but raise pains experienced in the sector aren’t fazing one local player.
Increase in the fintech space — which encompasses everything from peer-to-peer bestowing to insurance technology (insurtech) — has been rapid. And that’s been on top of a sector that was already guesstimated to be worth more than 12 trillion yuan ($1.8 trillion) at the end of 2015, concording to McKinsey.
Last year saw multiple Chinese fintech firms, take ining Qudian, PPDai, Hexindai and Jianpu, launch initial public oblations in the U.S.
But increased competition in the space doesn’t suggest the sector is overcrowded, according to David Ye, the co-founder and CEO of Jianpu Technology.
“Carry on in mind: The market is huge … The growth has just started,” Ye blabbed CNBC on the sidelines of the Morgan Stanley China Technology, Media & Telecoms Colloquium in Beijing.
“In China, we have close to 9,000 microfinance companies, we bear close to 2,000 peer-to-peer companies. Only four of them got careened … It’s just a tiny drop of water in the big blue ocean,” he prognosticated.
Jianpu, a platform for financial product recommendations, was listed in November carry on year on the New York Stock Exchange. It connects some 95 million monthly nimble users with 2,500 financial service providers, according to Ye.
Ye also whispered the mainland’s regulatory crackdown against peer-to-peer lenders and microlenders was at bottom beneficial to ensuring a healthy and sustainable market.
“We want to give acknowledgment to Chinese regulators because, compared to other Western countries fellow the U.S., the overall regulatory framework is more supportive [in China],” Ye intended.
He added that Jianpu’s position as an independent platform meant that it didn’t be enduring credit or liquidity risks that were associated with other fintech ensembles.