In the process of building a financial power, we will write a new chapter in the high-quality development of digital finance

Recommendation letter in the middle of the time

The research results of this book not only reveal the status and characteristics of the development of digital finance at home and abroad, but also deepen our understanding of digital finance theoretical innovation, technological innovation, model innovation and governance innovation, and clarify the opportunities and challenges faced by the innovation and development of digital finance in mainland China and the main trends of digital finance development in the future, pointing out the direction for the mainland to do a good job in digital finance and promote high-quality financial development.

Wang Xiuhua

The report of the 20th National Congress of the Communist Party of China proposed to "accelerate the development of the digital economy and promote the deep integration of the digital economy and the real economy". In 2023, the Central Financial Work Conference pointed out that "do a good job in science and technology finance, green finance, inclusive finance, pension finance, and digital finance". The development of digital finance is not only an inevitable requirement for the mainland to embrace a new round of scientific and technological revolution and industrial transformation, realize the organic integration of finance and digital technology, achieve high-quality financial development, and accelerate the construction of a financial power, but also an inevitable choice to improve the quality and efficiency of financial services for the real economy, promote the development of new high-quality productivity and high-quality economic development, and meet the needs of economic and social development and people's financial services. In this regard, the China Internet Economy Research Institute of the Central University of Finance and Economics, together with the School of Finance of Nankai University, Analysys, Zero One Finance and Zero One Think Tank, established the Central University of Finance and Economics Digital Finance Blue Book Research Group, which has carried out extensive and in-depth cooperation and exchanges with relevant ministries and commissions, local governments, market institutions, experts and scholars, and carried out research in many provinces (autonomous regions) and cities. Research results included in five thematic reports. The book "China Digital Finance Innovation and Development Report (2023)" is a collection of the results of this major research topic.

The book discusses the development and governance of digital finance in China from 2021 to 2022 from the following four aspects. The first is the theoretical innovation of digital finance. At present, there is an urgent need to realize the close integration of theory and practice in digital finance research, and strive to form theoretical support and consensus. Under the wave of digital development, many changes have taken place in financial theory in terms of research assumptions, research methods, and theoretical logic, which have had a profound impact on financial practice. Digital financial innovation will provide new impetus for economic growth and become an important growth pole for high-quality economic development. For example, digital asset value mining will effectively improve the level of social and economic capital, and smart finance will become the general direction of the transformation and development of the financial industry after Internet finance. In view of this, on the basis of a review of the relevant research on digital finance, the book provides an in-depth analysis of the theoretical context and progress in key areas such as digital inclusive finance, industrial digital finance, and consumer finance, which will help to better guide the innovative practice of digital finance. For example, the book argues that the further sinking of digital inclusive finance is of great significance to support rural revitalization, promote regional economic development, and promote the development of small and medium-sized enterprises. The research framework of industrial digital finance refined in this book has important reference value for promoting the virtuous cycle of "technology-industry-finance".

The second is the technological innovation of digital finance. The book emphasizes that the underlying technology of digital finance in mainland China is represented by big data, artificial intelligence, smart contracts and other technologies, showing the development characteristics of precision, intelligence, security and standardization. On the one hand, big data technology is the leading technology for the realization of various digital financial technologies, and it is also the underlying support for providing accurate services to various customers. To this end, while strengthening data governance and improving data quality, financial institutions should also improve the analysis capabilities of big data, expand the dimension and coverage of data analysis, alleviate the problem of information asymmetry, and better provide support for marketing, risk control, anti-fraud and other links. On the other hand, the application of artificial intelligence can significantly improve the operational efficiency of the financial industry and promote the development of the financial industry to intelligence, especially in product design, marketing, risk control, customer service and other links, which can bring many values such as increased business volume, reduced costs, reduced risks, and improved customer satisfaction for financial institutions. In addition, generative AI can help financial institutions better understand market dynamics and customer needs to provide customized products and services. Therefore, in the future, we should focus on the application of generative AI in digital financial technology innovation, improve existing financial services and tools, and promote financial innovation and the development of new business models.

The third is the model innovation of digital finance. The book focuses on research on green finance, digital yuan, digital and intelligent marketing, and metaverse finance. The book points out that the digital yuan is developing rapidly, and the penetration rate of digital yuan payments is rising, but its development is relatively slow compared to mobile payment. In fact, as a digital legal tender currency, e-CNY needs the support of third-party payment institutions in terms of system stability, ease of use of products, and applicability of scenarios in the process of application and promotion. At present, the exploration of e-RMB has shifted from domestic business to cross-border payment, and all parties should launch customized products based on the specific application scenarios of e-RMB, and actively participate in the innovation and application of B-end application scenarios. In addition, the book points out that the digital infrastructure of financial institutions has gradually matured, but the development and application of fintech tools have not effectively solved the problems faced by branch marketing efforts. In this regard, on the one hand, the artificial intelligence big data platform should be used to analyze the target customer group and prepare the data for digital marketing; On the other hand, the application of new technologies should be strengthened, and the algorithm model should be used to portray the data portrait of the target customer group from the aspects of basic customer attributes, products held, and capital flow.

Fourth, governance innovation in digital finance. To do a good job in digital finance, we need to fundamentally grasp the "seesaw" of digital financial value and security. The book discusses four aspects: digital finance supporting the real economy, preventing and resolving digital financial risks, digital transformation and scenario construction of the financial industry, and the construction of financial technology governance system. Digital finance is an important starting point for improving the quality and efficiency of financial services for the real economy, enhancing the inclusiveness of financial services, and highlighting the value of financial innovation. For example, relying on digital technologies such as the Internet and cloud computing, rural digital finance not only helps to reduce information asymmetry, lower the financing threshold for farmers and new agricultural business entities, and alleviate the problems of difficult, expensive and slow financing in rural areas, but also helps to give birth to new models and new forms of business in rural areas, and promote the transformation and upgrading of agricultural production models. From the perspective of past development history, the rapid development of digital finance has led to lagging supervision, and the application of financial technology has made unlicensed financial behaviors more and more hidden, various financial businesses have become more complex, and financial supervision has become more difficult. Although in recent years, management principles such as "finance belongs to finance, and technology belongs to technology" have become more prominent, it is undeniable that in the context of the gradual opening up of the market operating environment, there are still ambiguous areas of such boundaries, which may bring about a regulatory vacuum. Therefore, RegTech and FinTech should go hand in hand to identify and prevent potential risks in a timely manner, so as to better promote the development of digital finance.

Rooted in China's fertile soil, based on a global perspective, with the research goal of "deepening the application of digital technology, promoting the innovation of business models, supporting the development of the digital economy, and optimizing the digital financial environment", and with the theme of digital financial innovation and development, the book deeply analyzes and studies the innovation and development of China's digital finance from 2021 to 2022. characteristics and shortcomings, and put forward corresponding countermeasures and suggestions, with strong theoretical and practical nature. The research results of this book not only reveal the status and characteristics of the development of digital finance at home and abroad, but also deepen our understanding of digital finance theoretical innovation, technological innovation, model innovation and governance innovation, and clarify the opportunities and challenges faced by the innovation and development of digital finance in mainland China and the main trends of digital finance development in the future, pointing out the direction for the mainland to do a good job in digital finance and promote high-quality financial development.

(The author is a professor and dean of the School of Finance and Statistics, Hunan University)