From Savers To Investors
Chinese individuals have historically saved more than any other nation, with the majority of savings ending up in bank deposits or housing investments.
As China’s population continues to age — and economic growth continues to slow due to COVID-19, Chinese investors are looking to access safe and sustainable investment options to plan for retirement and other major life expenditures in a sophisticated way.
Fintech will fundamentally reshape how customers interact with financial institutions, and how financial institutions create new sources of differentiation.
Whilst the timing of profitability for fintech companies is uncertain, this is a long-term game and players are competing to capture the “lifetime” share of customers’ wallets.
More importantly, this will ensure customers are investing in the most suitable products and accumulating wealth — which will be ever more important as the Chinese population continues to age and the pension system remains severely underfunded.
With some of the largest investments globally coming into the Chinese market, could this be the rise of China’s leadership in fintech as well?