Title: Former Chairman of China Securities Regulatory Commission Calls for Improved Fintech Security Governance
Date: July 20, 2023
Beijing – The “2023 Zhongguancun Forum Series Activities – The Seventh Fintech and Financial Security Conference” took place in Beijing on July 20, addressing the evolving landscape of financial technology and the need for enhanced security governance. Xiao Gang, the former chairman of the China Securities Regulatory Commission, emphasized the importance of technology‘s role in the financial industry and the potential risks associated with its integration.
During his address, Xiao Gang highlighted that the financial sector has witnessed a new wave of informatization, digitalization, and intelligence due to the integration of technology. This trend has reshaped the industry, with financial institutions benefiting from and utilizing technological innovations. According to him, the current phase of fintech development has transitioned from 2.0 to 3.0, moving towards increased intelligence and digitalization.
However, as financial technology continues to advance, new risks emerge, including privacy concerns and data monopolies. Xiao Gang emphasized the urgent need to address these risks and improve fintech security governance to safeguard the interests of both individuals and the industry.
In order to achieve this, he outlined several essential principles. Firstly, financial institutions must maintain their focus on serving the real economy and improving people’s lives. This principle ensures that technological innovations align with the needs of the public and the national economy.
Secondly, Xiao Gang stressed the importance of adhering to licensed financial operations, which requires clear delineation between the domains of finance and technology. This distinction will help prevent regulatory ambiguity and promote responsible usage of financial technology.
Thirdly, the former chairman called for a unified approach to supervision, combining prudent supervision, industry supervision, and technology supervision. This comprehensive oversight aims to elevate technology risk supervision as an integral part of systemic risk management.
Moreover, Xiao Gang emphasized the significance of multi-dimensional co-governance and international cooperation. Collaborative efforts among industry stakeholders and international partners can enhance fintech security measures and mitigate potential risks.
Finally, while promoting financial innovation, Xiao Gang urged caution and prudence. It is crucial to strike a balance between encouraging innovation and managing associated risks to maintain financial stability and security.
The “2023 Zhongguancun Forum Series Activities – The Seventh Fintech and Financial Security Conference” provided a platform for industry experts, policymakers, and professionals to discuss emerging trends and challenges in the financial technology sector. The insights shared by Xiao Gang shed light on the importance of enhancing fintech security governance for sustainable development and maintaining public trust in the financial industry.
As the financial sector continues to evolve, stakeholders must prioritize comprehensive security measures and collaborative efforts to ensure responsible and secure utilization of technology for the benefit of all.