CPA Australia: Chinese Businesses Lead FinTech Usage in Regional Survey

BEIJING, CHINA -�Media
OutReach - 14
August 2020 – Driven by the Government’s FinTech
development plan and innovation strategy, China is leading the way in business
FinTech usage across the region, according to a survey of business FinTech usage by CPA
Australia, one of the
world’s largest accounting bodies.

The
survey found that 80 per cent of respondents from China reported that their businesses
had used at least one FinTech product or service in the past twelve months,
which is the highest result of the surveyed markets. Further, Chinese businesses
were the most likely to maintain or increase their usage of mobile
payments/digital wallets, robo-advisory/chatbots, wealth management technology
and FinTech lending in the past twelve months.

Tony Chan, Deputy President of CPA Australia
South China Committee says that the fast-growing business FinTech usage
in China is boosted by the development of emerging technologies and changing
consumer behaviour. 

“Supported by a number of favourable Government policies, including
financial and tax incentives, such as the 175 per cent super deduction for eligible R&D expenditure
and greater funding for AI development by local governments, Chinese businesses
are more inclined to utilise FinTech compared with businesses from the other surveyed markets.”

“Another factor that has led to a boost in
business FinTech usage in China is changing consumer behaviour. Chinese
millennials, who are digital natives, are a major force in the consumer market,
and this has further spurred Chinese businesses to adopt FinTech.”

The survey findings also indicate there is a clear link between the use of FinTech
and business growth. It found that
74 per cent of Chinese businesses that were more profitable in 2019 either
maintained or increased their usage of mobile payments or digital wallets in
the past 12 months, and 54 per cent of Chinese businesses that were more profitable in 2019 either
maintained or increased their usage of robo-advisory/chatbots.

“FinTech will be an engine for business growth
and we believe
China’s leadership in FinTech usage amongst businesses will continue.” Mr Chan comments.

84 per cent of surveyed respondents from China
believe their businesses will use at least one FinTech product or service in the next 12 months, according to the
survey.

However, the impact of the rapid growth of
FinTech usage in Chinese businesses has also created challenges. According to
the survey, respondents from China were most likely to select cybersecurity
concerns (41 per cent) and shortage of FinTech talent (37 per cent) as the key
barriers to business FinTech adoption.

“Amongst the surveyed markets, we note that
businesses in China were most likely to choose a shortage of FinTech talent as
one of their key challenges to FinTech adoption, which is a consequence of
growing business usage of FinTech in China.

“To meet this challenge, we would welcome
more cross-disciplinary FinTech degree programs and we suggest that businesses,
research institutions and universities in China collaborate in developing new
talent development plans to cultivate, recruit and retain FinTech talent,” Mr Chan
says.

For more information on CPA
Australia’s Business FinTech Usage Survey:

CPA Australia’s Business FinTech Usage Survey -  Preliminary, Mainland China results

CPA
Australia’s Business FinTech Usage Survey — Infographic

About the survey

The
survey was conducted by CPA Australia from 23 June to 14 July 2020. A total of
573 responses were received from accounting and finance professionals in
Mainland China, Hong Kong, Singapore and Malaysia, with 158 respondents from Mainland China.

About CPA Australia

CPA Australia is one of the
world’s largest accounting bodies with more than 166,000 members working in 100
countries and regions around the world, and with more than 25,000 members
working in senior leadership positions. It has established a strong membership
base of more than 19,000 in the Greater China region.