Editor’s note: This originally appeared on Analyse Asia a weekly podcast hosted by Bernard Leong, dedicated to dissecting the pulse of business, technology, and media in Asia. The podcast features guests from Asia’s vibrant tech community.
Zennon Kapron from China Fintech & Kapron Asia joined us in a conversation to discuss the state of fintech in China. We discussed the different verticals within the fintech sector from digital payments, peer to peer lending to wealth management. He explained how the Baidu-Alibaba-Tencent axis is dominant in fintech against the traditional Chinese banks and western banks and serve as a business model for fintech startups. Last but not least, Zennon shared how local and foreign companies need to navigate regulation.
Here are the interesting show notes and links to the discussion (with timestamps included):
- Zennon Kapron (@chinafintech, LinkedIn, Wechat:zennon ), Founder and Director of Kapron Asia & China Fintech [0:40]
- How did you start your career? [1:26]
- From your various roles from CitiGroup, Intel to your current role, what are the interesting career lessons you can share? [2:20]
- What inspired your interest into fintech? [3:25]
- Can you talk about your role and coverage in Kapron Asia and China Fintech? [4:07]
- Fintech in China [4:59]
- Can you describe what fintech is and what’s the context of fintech with respect toChina? [5:23]
- Is Fintech in China focused on financial inclusion or disruption to traditional banks? [6:41]
- What is the environment like in China for fintech, given the existence of Baidu, Alibaba and Tencent (BAT) which have disrupted the space with their digital payments and products such as Alipay & Wechat? [8:30]
- What is happening with the traditional banks, clearing houses and payment networks in China with BAT’s disruption in fintech? [10:14]
- What are the strategies pursued by Western banks to go digital? How does their strategy differ from the Chinese counterparts? [11:46]
- Can you talk about the different sectors & innovations for fintech in China and the most exciting startups or BAT products in the space? [13:12]
- Digital Payments (Paypal, Stripe): Alipay and Wechat pay [13:39]
- Wealth management (Betterment, Wealthfront): Yu’ebao [14:06]
- Bitcoin and Blockchain (Check out Zennon’s book “Chomping at the bitcoin“) [15:56]
- Crowdfunding [17:49]
- P2P lending: Dianrong, Lufax and its partnership with Ping An [18:39]
- Stock Index with Baifa 100 index [20:01]
- Credit rating: Sesame Credit
- Any other areas which I have missed?
- BAT are the new business models for fintech startups in China, why is this so? [22:30]
- How does traditional banks in China cope with the onslaught of BAT and Chinese fintech startups? [23:38]
- What is the operating environment for fintech companies in China? Are there any regulation or legislation that foreign fintech startups should watch for when they enter China? [25:00]
- What is the current appetite for venture capital investment in fintech within China? Any interesting exits or acquisitions? [26:04]
- What are the implications for China fintech companies going out of China and expand globally? [26:57]
- What are the interesting trends for fintech in China in the next 5 years and what willwe see in the next year 2017? [29:05]
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