Fintech and Banking Reform: A Perspective from China

China’s banking sector undergoes a fintech-driven transformation using technologies like big data, cloud computing, AI, and blockchain. This shift from offline services to online services brings achievements like online finance, trade finance blockchain platforms, and data governance in banks. However, the introduction of China’s central bank digital currency (DC/EP or e-CNY) has mixed impacts on commercial banks. While enhancing convenience, it poses governance risks, reduces traditional income of commercial banks, weakens branches of commercial banks, and pressures infrastructure. To address challenges and protect consumer rights, banks must follow fundamental rules like the Cybersecurity Law, Data Security Law, and Personal Information Protection Law. Commercial banks should accelerate strategic transformations, strengthen information systems, and shift to online platforms. Fintech innovations expand financial services, improving accessibility, reducing costs, and enhancing efficiency in China’s banking sector.