In 1997 Bill Gates spoke: "We do not need banks. We need services which they provide".
And nevertheless many people still do not believe that financial technologies will exert considerable impact on banks. Fortunately, we just have interesting data on this subject. The infographics given in this material reflects the value of damage which Alipay and other similar companies caused to the banking sector in China. If all this time you did not believe that financial technologies will change the banking sector to unrecognizability, think of it once again.
The publication is prepared for the corporate blog PayOnline, the company which is just the representative of financial that of the industry and actively provides services of payment acceptance on the website.
Financial that the companies already declared smartphones a dual-purpose gun of revolution. With confidence it is possible to tell that the countries with high percent of distribution of smartphones will observe noticeable development of the companies working in the field of financial technologies. In China the indicator of distribution of smartphones exceeded a mark of 50%. Among urban population more than 65% use them. So high popularity of mobile phones creates conditions for their regular use as the main access units in the Internet that, in turn, leads to a bigger increase in number of the purchases made with their help. It also occurs in China where for the last three years the impressive growth of the market of independent mobile payments is observed. Now the monetary volume of operations on mobile payments grew so that practically twice exceeded a similar indicator for transactions of checks.
The recent report of National Bank of China shows that the size of the market of check payments decreased by 29% in comparison with previous year. Now it makes about 6% of the total amount of non-cash operations whereas the market of mobile payments which sharp growth began in 2009 reached a point of 11% of the same sum. In total financial that the companies working at the market of mobile payments endure the phenomenal growth whereas traditional financial institutions lose the positions. Alipay — the large player possessing the greatest share in the market of mobile payments already carried out this year of operations for the sum by 2.6 times exceeding the cost of operations on credit cards of Industrial commercial bank of China and in 3.7 exceeding the same operations of the Chinese trade bank — two largest representatives of the banking sector. Here it is important not to forget that else quite recently banks in China dominated in the field of financial services. Therefore so noticeable growth of influence of the financial and technology companies and a challenge which they throw down to a traditional financial system force many sceptics to believe that modern technologies have sufficient potential that within several next years to make revolution and to exert serious impact on the global financial market.
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