China: Fintechs that succeed know how to use technology to adapt to local conditions

Fintechs that succeed in the Chinese market know how to use technology to adapt to local conditions, improve efficiency, and service small businesses, according to an article from McKinsey. Here’s how it’s done.

Perhaps no market is more ripe with opportunity for financial technology firms than China’s. More than 800 million of its citizens (60 percent of its massive population) actively use the Internet and do so almost entirely via mobile devices.

In 2016 alone, nearly $23 trillion of Chinese consumer expenditures were made through mobile-payment platforms. And the country has a growing small and midsize business community—which already accounts for 60 percent of China’s GDP—hungry for lending, payments, and other financial services that larger Chinese financial institutions have typically been unable to provide, with their resources focused largely on serving state-owned enterprises.

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