The Zhitong Finance App learned that Guolian Securities released a research report stating that fintech is a technology-driven financial innovation. The core purpose of its development is to improve the quality and efficiency of finance, and that technology is an enabling tool. Currently, with factors such as policy incentives, technology, and demand driving the digital transformation of financial institutions, the scale and profit level of the fintech industry are constantly increasing. In the future, as IT investment in the financial industry continues to increase and new technological changes drive new financial business formats, the prospects for the fintech industry are promising. We are optimistic about the development prospects of the fintech industry and give it a “stronger than the market” rating.
The main views of Guolian Securities are as follows:
The regulatory attitude towards the fintech industry has shifted from rectification to normalized regulation
In the early stages of the development of the fintech industry, related issues and risks were exposed due to extensive management. The rectification has now been put in place under corrections and regulations by the regulatory authorities, and the attitude of the regulatory authorities towards the fintech industry has also shifted to encouraging and supporting its development under strict supervision. As policies continue to accelerate the digital transformation process of financial institutions and increase the speed of localization of the digital economy and financial information systems, the overall scale of the fintech industry will continue to grow.
The implementation of new technology is expected to push the development of fintech into a new stage
The emergence and popularity of new technologies will drive changes in demand, supply, and business models in the financial sector, while also spawning new business formats such as mobile payments, consumer finance, and internet insurance. Currently, technologies such as cloud computing and blockchain are still at the stage of increasing penetration rates, and the application of technologies such as AI and large models has not yet formed a scale, and the benefits of improving human efficiency in the financial industry are limited. However, with continuous breakthroughs and innovations in new technologies, it is expected to have a disruptive impact on the development of the financial industry and push the development of fintech into a new stage.
The production lifestyle of users is mainly online, and demand continues to expand
In the context of the spread of technologies such as the Internet, smart phones, and AI applications, users' production lifestyles are gradually showing new characteristics of digitalization, networking, and intelligence, and customer demand for fintech continues to expand. The emergence of new financial business formats such as mobile payments, internet consumer finance, and internet wealth management has enabled users to gradually understand fintech application scenarios, and the impact of the epidemic has further pushed users to get used to fintech applications. Therefore, after changes in user habits, accelerating digital transformation has become a “must-have option” for financial institutions.
Investment advice:
Under the combined impetus of factors such as policies encouraging and promoting financial institutions to accelerate digital transformation, technological change drives innovation and upgrading of financial institutions' business models and processes, and changes in user demand encourage financial institutions to actively seek change, the development of fintech is expected to maintain a high level of prosperity; the superposition of national strategy has strong demands for promoting autonomy and control, localization substitution, the digital economy, etc., and emerging formats in the field of fintech are expected to continue to emerge.
Considering that licenses, technology, and traffic are the core competitive advantages of the fintech sector, we focus on recommending Tonghuashun (300033.SZ), Oriental Wealth (300059.SZ), Compass (300803.SZ), and Zhongan Online (06060), which have both financial licenses and traffic. It is recommended to actively pay attention to various financial IT companies, leading bank IT manufacturers Changliang Technology (300348.SZ), Beijingfang (002987.SZ), Colan Software (300663.SZ), leading securities IT vendors, Wealth Trends (688318.SH), Apex Software (603383.SH), Financial Securities Co., Ltd. (600446.SH), leading insurance IT companies, Zhongke Soft (), and Xinzhi Software (). 603927.SH 688590.SH
Risk warning:Policies fell short of expectations, technology applications fell short of expectations, market competition intensified, and financial industry sentiment declined.