The application of science and technology within the financial sector has generated concerns despite its convenience and efficiency. These issues should be addressed by clear laws and regulations as well as international cooperation, said Yi Gang, governor of the People's Bank of China, at the Annual Conference of Financial Street Forum 2020. 

The "ABCDE technologies" of artificial intelligence, big data, cloud computing, distributed accounting and e-commerce are being advanced in the financial sector, greatly promoting its digital transformation. 

"Those who possess the 'ABCDE' technologies have the initiative and gain the upper hand," Yi noted. Fintech has cut the cost of and expanded access to financial services, contributing to the achievement of inclusive financing, he added. 

However, despite the advantages offered by the progress of fintech, there are also problems, such as the protection of trade secrets and individual privacy as well as the digital divide between the technology "haves" and "have-nots." 

To solve these problems, Yi said in his speech at the opening ceremony that measures should be taken in the following four aspects. 

First, a clear set of laws and regulations should be established to provide a level playing field with improved transparency. Meanwhile, imparity clauses must be eliminated for data collection. 

Second, the financial regulatory system should be optimized. For example, decisions can be taken to clearly specify which financial services should require licenses. 

Third, international cooperation needs to be enhanced. This is important because data, to a certain extent, respects no borders. 

Finally, some traditional and effective financial services such as cash payment should be preserved. "While many are blessed by the convenience of fintech, some senior citizens and other groups suffer from the digital gap because of a lack of smart devices," Yi commented. "We must ensure that cash payment remains available to them." 

The three-day conference running from Oct. 21 to 23 in Beijing, featured talks on financial cooperation and reform under global changes, offering an interactive platform for financial development.

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