Top Chinese Fintech to Boost Global Economy
As the COVID-19 pandemic continues to hit many SMEs globally, a Chinese fintech is expected to provide them opportunities to shake off the adverse effects. The fintech will inject new momentum into the global economic recovery.
China has demonstrated innovative applications of fintech; however, they still held over 40 online and offline sessions at the three-day INCLUSION Fintech Conference in China.
The conference covered global inclusion and openness, global ecosystems and partners, innovative fintech, green solutions, and sustainability.
Although the gloomy shadow of the coronavirus continues to shroud the world economy, financial inclusion and China’s fintech innovation has offered a silver lining.
Connecting Global Markets
Eric Jing described how an electronic trade platform could empower SMEs in Africa, with a cup of Rwandan coffee that he brewed. Eric is the executive chairman of a Chinese fintech firm Ant Group.
Electronic World Trade Platform (eWTP) facilitated coffee beans’ transportation to China – an initiative Alibaba proposed.
Despite the pandemic disrupting transport, it takes less than a fortnight to transport coffee beans from Rwanda’s farms to reach Chinese consumers.
The platform reduces costs by cutting out the middleman. Coffee farmers in Africa can earn an extra $4 for every kilogram the sell. eWTP has made it possible for chili sauce made in Rwanda to find its way to the Chinese dinner table.
Sami Farhad, also said young people in Rwanda have a desire to return to their hometowns to work. The average daily income for farmers in Rwanda is five or six times what they earned in other cities.
Sami is a senior director of the globalization office of the Alibaba Group.
According to IMF Managing Director, Kristalina Georgieva, seizing opportunities to improve financial access was already a priority before the COVID-19 pandemic. However, it’s even more urgent now because groups that already lacked access were hit hard by the pandemic.
Georgieva added that financial inclusion and fintech could help people connect to opportunities under such circumstances and avoid slipping into poverty.
Cutting-edge Technologies
Yuan Jing never thought that blockchain would one day play a critical role in her work. Jing is a crystal glass merchant in Yiwu, a city in the east of China’s Zhejiang Province. It’s also known as the “World’s Supermarket.”
On Friday, Ant Group unveiled Trusple, a digital international trade and financial service platform powered by AntChain, its blockchain-based technology solutions, at the INCLUSION Fintech Conference.
Trusple : What is it?
Trusple aims to make it easier and cheaper for all users, especially SMEs, to sell products and services globally. The innovative application of blockchain technology exists to offset the mistrust in transactions inherent within traditional cross-border trade. It also aims to promote the smooth flow of global trade amid the pandemic.
During the pre-launch testing conducted this month, Yuan completed the first transaction of the Trusple platform. Thus, sending a consignment of goods headed to Mexico.
Yuan added that selling crystal glass Africa and Latin America was a challenging task for her. Customers would make a 30% down payment. Then, she’d receive the last 30% after one or two months – which always kept her on tenterhooks.
However, this time, Yuan received payment the day after the goods arrived in Mexico. Yuan said with Trusple, she expected her business to achieve the last 30% growth next year.
On the same day, Trusple launched. Standard Chartered announced the successful completion of the first cross-border live transaction on the platform.
Improvements in the Region
SMEs globally contribute up to 40% of the GDP in emerging economies and are essential contributors to job creation.
According to Neil Daswani, integrating leading financial capabilities into the Trusple network, there’s a real opportunity to facilitate business participation in the growing intra-Asia trade ecosystem. It also supports the development of a sustainable supply chain in the region.
Neil is the global head of business banking and corporate partnerships at Standard Chartered.
Achim Steiner also said during his video address to the opening ceremony of the INCLUSION Fintech Conference that some of the visible “added value” of the digital revolution had been seen in the realm of fintech – which can underpin positive changes.
Achim Steiner is the administrator of the UN Development Program.
Steiner said, now was the time for nations to seize upon the renewed global solidarity. In order to fully harness the power of digital finance to build forward better.
