Canada    FinTech Guide    Chapter 9    China

9. Analytics and Research / Data Management / Risk Management
China  China

The government strongly encourages the development of technology in this area.

Legal Affairs

In China, FinTechs in this category may mainly refer to the technology companies which are providing outsourcing service to banks. The business scope of such FinTechs normally include data analysis and processing services, risk management services etc.

Assuming a technology company provides the above services, as a contractor of a bank, it shall comply with the relevant requirements of CBIRC, such as submitting data to CBIRC regularly, cooperating with authorities to assess risk and deal with the risk, cooperating with the authority regarding investigation and appraisal.

CBIRC categorized such contractors of banks into different rating, including A, B and C. The company with rating A is allowed to serve for all banks in the country and the amount of served banks is not capped. As for B and C, the scope of service has certain restrictions.

If the technology company serves for other entities, the above requirements for rating and cooperation with CBIRC will not be applicable.

Further, please kindly be noted that the FinTechs in this area shall mainly work on the technology, rather than conducting any company/individual credit business. The company to provide any credit report of company/individual is subject to the credit business license separately.

Economic Conditions

Based on massive data and advanced technology, leading Internet companies in China such as Alibaba, Baidu, Tencent, JD, Huawei have great capacity in data and risk management or analytics and research. So far, Alibaba, Baidu, Tencent, JD have cooperated with “4 biggest state-owned banks” to firmly commence the cooperation of technology and finance.

As to third party FinTechs which provide services to the banks, Beijing TRS, UMeng, Baifendian, TalkingData are the leading companies in the data analytics and research services area. PWC, Accenture, S&P, Moody are the biggest third party companies that provide risk management services in China.

Contributing Authors


Norah Yinuo Zhang
Beijing, China

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Chapter Index:

1. Payment Services / Mobile Payment

2. Asset and Portfolio Management

3. Consulting and Broking Services / Robo-advisory / Auto-trading

4. Trading Platforms / Social Trading Platforms / Signal Following

5. Crowdfunding / Crowdinvesting / Crowdlending

6. Virtual Currency - Bitcoin

7. Loan Services / Factoring / Loan Broking / Finetrading

8. Online Banking Services

9. Analytics and Research / Data Management / Risk Management

10. Accounting

11. Identification

12. Online-pawning

13. InsurTech

14. RegTech

15. Initial Coin Offerings (ICOs)

The information in this guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.

Publication Date: 1 May 2018