By Sun Fei, Research Team on “China’s Fintech’s Current Performance, Advance Trend and Development Strategies”, Research Institute of Finance, DRC

Research Report, No.143, 2021 (Total 6208) 2021-6-2

Abstract: Due to large differences on fintech development concepts, advance policies and consumer demands between EU member states, the fintech market of the European Union is scattered and fragmented, making its fintech promotion and financing scale fall behind that of China and the United States. However, the EU fintech development boasts some highlights. For instance, the small businesses are more active and traditional financial institutions and start-up companies develop side by side in a collaborated manner. Through introducing laws to regulate innovation and improve supervision and coordination, the EU has created a favorable policy environment for the long-term and stable development of fintech. Compared with EU, China sees no market fragmentation like the EU. But due to the swift fintch innovation drive, market disorders caused by industries such as P2P have loomed up in some areas. Therefore, China needs to refer to the EU experience to execute supervision in a more timely and targeted manner and give full play to the role of financial institutions, fintech companies and industrial organizations to promote steady fintech development and improve the quality and efficiency of financial services.

Keywords: fintech, regulation policies, experience for references, European Union