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Innovation Unleashed: Elevate Your Fintech Aspirations with Enterslice's Premier Licensing Support in China. Pioneering Regulatory Solutions for a Seamless Journey to Fintech Success

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Fintech Consulting & Licensing Support in China

China has everything that you need for your fintech industry, from the tech-savvy population and cutting-edge technological infrastructure to robust innovation ecosystems. Once your business is part of China's fintech land, it will thrive like never before, but all this is only possible with the support of Enterslice. Make us part of your transformative journey and witness the integrations we foster to make your fintech business a success. We support fintech industries in hassle-free license procurement to make your business attain financial inclusion in China’s fintech landscape.

Understanding Fintech and It’s Licensing

Finance and technology, when adjoined, become a fintech. Any business that uses technology to enhance and automate its financial services-oriented products and processes is a fintech business. Today, any technologically enabled financial innovation that might produce new business models, applications, processes, or products that have the capability of leaving an effect on the financial market is known as a fintech business model. Due to stringent consumer protection rules, these fintech business models can't be part of the public domain without obtaining authorization from the regulatory authorities. This authorization is generally in the form of licensing, which gives the right businesses innovative fintech models to introduce in the public domain.

Each nation has separate policies when it comes to fintech licensing, and an entity willing to obtain the same needs to register them accordingly as per the local laws. These licensed fintech entities rely upon electronic channels for their distribution, making cross-border interactions and outsourcing of products easy, converting the global market into a unified marketplace.

Enterslice Envisions Fintech Licensed Entity to Attain

Information digitalization

A developed digital infrastructure is the foundation of any fintech business, with Enterslice becoming digital and dominating the fintech market.

Financial Intelligence

The more the fintech is innovative and driven, the more its chances to rule the fintech market. Let Enterslice make intelligent decisions for your business that are backed by strong strategic support.

Sustainability & Fairness

At Enterslice, our philosophy is to build a sustainable business that has a sense of mitigating carbon peak and carbon neutrality. If you are an environmentally aware fintech, build your business with our support.

Enterslice Fintech Licensing Services Will Make Your Business

Comprehensively Shaped

We will structure your fintech license comprehensively with no possibility of errors and incumbency.

Strong and Ethical

A company's existence gets prolonged in the market if it ethically does business. Consult Enterslice, and let us help build a positive work environment around your organization that fosters mutual trust and respect.

Secure and Ubiquitous

A fintech model must provide a secure space to its customers, which could foster the creation and processing of data, take our services, and make your fintech a safe and secured virtual space.

Advanced and Efficient

A technologically advanced and upgraded licensing application that provides efficient structure to China’s fintech model is what Enterslice does for you, making the market crave your existence.

Enterslice Tailor-made Fintech Licensing Services

Security and compliance audit assistance

The regulations in China are such that the entities doing business there need to comply with strict requirements such as security and compliance audits by the cyberspace administration of China. Enterslice has a team of experts who have expertise in managing compliance and auditing. Connect with us, let us handle your compliances, let Enterslice build a secured database for your fintech functions and obtain a green flag from the authorities.

Legal support and assistance

China has very stringent policies for consumer protection, and they have formulated rules and regulations by the name of measures for assessment of data offshoring security assessment, administrative rules on internet user account information, and administrative measures for protecting the rights and interests of consumers of banking and insurance institutions, to keep their consumers safe against cyber and data infringement threats. If you are a fintech company planning on entering the Chinese fintech market, you will need the support of Enterslice's legal team. We know the core Paper works needed to obtain a fintech license in China, which is why we will create such cyber-secured and data-protected policies for you, with the help of which you could easily attain the fintech license.

Fintech Ethics Governance Support

In China, any entity that is planning on establishing its fintech industry must comply with the green finance rules of the banking and insurance industries formulated by the China Banking and Insurance Regulatory Commission. China regulatory authorities focus much on those fintech models that are ethical and sustainable, and an ethical business model needs Guidance from an industry expert like Enterslice, who could support you in managing and following the governance needed for ethical business plan creation.

Incentive schemes assistance

For a budding fintech, there are various incentive schemes to strengthen their financial and technological base, incentives such as low/zero interest loans, preferential tax treatments, subsidies, and government guidance funds that help and aid fintech startups, with the support of Enterslice along with your licensing process we will assist you with these incentives schemes so that the building blocks of your fintech industry could be well designed and manageable after attaining the license.

Support in Making Financial Resources Statements

 A financial resources statement is one of the most important necessary papers that is to be attached to the license application. A financial resources statement identifies and contains the description of the processes the applicant has in place to meet its financial obligations. This necessary paper decides the fate of the license application, and any irregularity in the financial resource statements makes it impossible for the fintech business to obtain the license. Every new fintech firm must take help from a third party to make and audit their financial resources statement so that any misappropriation or inadequacy can be detected on time. Enterslice, with Its team of fintech experts, could audit the financial resources statements of your business, providing you with the exact insight into your business's financial resources and whether or not you are eligible to qualify for the fintech license, prior knowledge of the same is better than receiving a rejection of an application. With the help of prior knowledge, the team of experts in Enterslice can help you formulate a discrete financial resource statement.

License Issuance Support

Professional indemnity support, custodian support, and investment scheme assistance are certain mandates that are needed by the regulatory authorities before they issue the fintech license to any entity. Most of the time, due to the heavy Paper works load, it becomes difficult for the fintech to fulfil these last-minute mandates, which is why a consultant like Enterslice is needed so that you don't leave out those mandates which are important for getting the fintech license issued. Our team has indemnity support and insurance experts who could generate and choose the right policy for you that is apt with China's fintech conditions.

Enterslice Sector-Based Licensing Services

At Enterslice, we capture the entire financial services sector in China. Connect with us to bring your business plan, and we will suggest the best financial business model amongst the following-

Banking model

This model includes services offered by an entity that is inclined to banking, such as commercial banks, policy banks, and rural medium and small financial institutions.

Securities Model

Firms that want to establish their securities firms, such as underwriters, brokers, investment and securities consultancies, and agents inclined towards asset management, public and private funding companies can take assistance from our securities experts.

Insurance Model

Entities dealing with life insurance and general insurance companies or brokers and agents interested in registering their business models can come to us and discuss their business plans. We could assess it and measure its sustainability in the market.

NBFI Model

If you are interested in opening a business that deals with consumer finance, small loans, financial leasing, auto financing, asset management, and non-banking financial institution models, then Enterslice could be your ideal partner.

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Enterslice Licensing Services

Our fintech licensing services include outlining and assisting all the necessary processes that are compulsory for China's fintech license procurement. Along with licensing, we can also assist you in taxation, budgeting, and financial marketing domains.

necessary paperation Assistance- Our fintech experts offer easy and hassle-free Paper works guidance with checklists along with updated formats from time to time.

Compliance Support- establishing a cross-border fintech industry involves multiple compliances, which, when not followed in a proper pattern, cause delays in the licensing process. Our legal team will help you in systematic compliance formulation along with time-to-time compliance support as per the changes in the regulation.

Expert Guidance- We customize fintech strategies as per your company's business model. To achieve the same, we assign a dedicated fintech expert who will provide expert Guidance and support and help you make the right decisions for your company.

Overview of China's fintech industry

The fintech industry of China made a stage-wise growth, which was not by fluke but using a step-by-step developmental landscape that the regulatory authorities formulated to make fintech susceptible to the financial market of China. There were initially three stages within which the fintech growth of China's financial market was planned, starting from the finance computerizing stage between 1993 and 2004, when the People Bank of China and other financial institutions started to digitalize their back offices and services. The second stage was the Internet finance stage between 2004 and 2006, where the already existing financial companies started to build their online platforms to transform the landscape of traditional financial services to attract massive numbers of users. This phase was when businesses involved in online securities account opening, online banking systems, P2P lending, and mobile payments observed rapid growth. The third stage started from 2016 till the present, is considered a fintech stage and is broader in scope due to the addition of new technologies such as big data, cloud computing, artificial intelligence, and blockchain, which, when merged with the financial services and its products produces a fintech oriented business which has a low transaction cost along with improved operational efficiency.

Due to the successful compilation of all these three stages, China has been the world's leading fintech investor since 2018. By 2018, the fintech investment in China reached US$25.5billion with around 900% growth year on year, making it 50% of the total fintech investment globally.

Key Regulators of Fintech Industries in China

People's Bank of China

The foremost responsible authority for fintech in China is the People's Bank of China, which establishes control and supervision over the domestic financial sector. All the rules and regulations are drafted by this authority, and they are responsible for formulating and implementing the monetary policy so that financial stability and economic growth can be maintained within the territory. They foresee the management of foreign exchange and transactions taking place in foreign currencies.

China Banking and Insurance Regulatory Commission (CBIRC)

The function of CBIRC is to supervise financial industries, banks, companies that deal in managing trusts, or any other form of financial institution that deals in deposits. They regulate online lending as well as online trust and consumer finance in fintech.

China Insurance Regulatory Commission (CIRC)

It is responsible for supervising the insurance companies or any other institution that deals with the supervision of insurance companies. Their key function is to ensure that there is stability in the legal operations of banking and other financial institutions that deal in the insurance business, as well as take care of the licensing protocols for banking and insurance institutions.

China Securities Regulatory Commission (CSRC)

CSRC is established under the state council and is a ministerial-level public institution. CSRC makes policies and developmental plans for securities and futures markets. Their duty is to supervise listed companies and their shareholders and look after their compliance and other obligations, whether or not in sync with the relevant laws and regulations.

Types Of Fintech Licenses In China

The People's Bank of China (PBOC) issues payment licenses to the entities engaged in the payment service activities known as payment services licenses. The financial entity must have a minimum registered capital of RMB100 Million if they want to engage in financial activities across China and for engagement within a certain province of China, which might be an autonomous region or a municipality directly under the central government, then a financial entity must have a minimum registered capital of RMB 30 Million. If, after obtaining the payment license, the financial entity must keep good operating records, and in case the licensed business accumulates losses exceeding 50% of its paid-up capital, have a series of operational risks, a series of violation of laws and regulations, then the people's bank of china has the authority to suspend the license and stop the operation of the payment institution. An ICP license, i.e., an Internet content provider license, is a mandatory license issued by the telecommunication authority of China due to the reliability of fintech on the Internet for providing services/information/content. The ICP license conditions are slightly restrictive towards foreign investments, where the foreign shareholding ratio of the applicants shall not be more than 50%.

How Does a Foreign Fintech Entity Establish Its Business in China

A foreign entity is allowed to do business operations in China under certain restrictions and compliances. Entities that are interested in carrying out online payment-related business require approval by the PBOC in the form of a payment service operator license upon the fulfilment of certain conditions, such as the fulfilment of minimum capital requirements, establishing that the financial institution has secured disaster recovery systems along with the detail of personal information and financial data generated and collected in china by the payment system operators, the payment service operator must have established compliances about corporate governance, risk management, safekeeping of funds and reserve for deposits.

In 2020, NDRC and MOFCOM enlisted certain measures about the security review of foreign investments, which were published to enhance the measures that could safeguard the national security for foreign investments.

Challenges Faced by Businesses in China Resulting in Indigent License Applications

Competitive Landscape

The major fintech players of China, such as Alibaba and WeChat, are dominating 84% of the Chinese market, sharing market and making your place among such sizeable players who are fierce competitors is tough, but with the help of third-party consultation who have experience in China's fintech market dynamics could facilitate and plan your entry in the Chinas fintech market so that you land to a secured and safe space.

Competitive Fee Structure

The fee competition amongst the players of China's fintech market is fierce, and the current fee charged by the offline merchants can be as low as 0.38%, making it tough for the offline merchants to manage their fee structure, which, according to the official mandates and is profit making.

Rising Mergers and Acquisitions

The entities that are licensed in China are considered valuable, and the traditional industries, to decrease the competitors in the market, try to merge with these entities, ruling them out of the current landscape. This integration-oriented approach makes the survival of new players initially tough in China.

Rapid Rollout of New Technology

The pace with which the Chinese fintech market is growing in terms of technology is not everyone's cup of tea. The new market entrants find their survival tough in the Chinese market due to rapid technology initiatives and the ease with which the old traditional fintechs adapt to the advanced changes.

Key Players of China Fintech Market

Alibaba Group

The parent company of Alipay is Alibaba Group, and it is the biggest successor of China's fintech market. Alibaba revolutionized the fintech industry by designing Alipay, which has its online escrow service that further developed into a comprehensive financial platform that offers banking, wealth management, credit scoring and insurance services.

Tencent Holdings

WeChat Pay was created by Tencent Holdings, another successful fintech giant in China. WeChat was initially a chatting app that Tencent Holdings later transformed into a successful financial tool along with integrated daily activities such as messaging, social networking, and shopping.

Com

Com is a well-known and largest online retailer in China. It is controlled and established by JD.Com, and this online platform includes finance-oriented activities such as consumer lending, wealth management, and insurance.

Payment Service sectors in China

Mobile Payment

China has a penetration rate of over 70% in mobile payment usage. Right from consumers to businesses, the preferred mode of payment is through mobile payments. This has led to the origin of mobile payment giants such as Alipay and WeChat Pay, which brought incomparable convenience to consumers and transformed businesses to be more efficient and cost-effective.

Online Investment Funds

The rise of investments has changed the entire fintech scene in China now. Investors don't have only a few options from which they have to choose and make an investment, but now, within the market, there is a wide variety of investment opportunities available from which the customer can pick and choose the investment best fitted for them.

Platforms such as robo-advisors and wealth management entities are part of online investment funds because they have made investing in stocks and bonds more accessible and easier.

Regtech Regulatory Technology

Compliance with financial regulations is a crucial component no matter what scale the fintech is operating at because the advanced structure of data analytics and automation helps financial institutions and fintech companies manage operational efficiency along with the understanding of tactics for managing risks.

Lending and insurance sector in China

Online Lending

Generally, traditional banking entities face limitations when serving individuals and businesses, but with the help of big data and advanced analytics, age online lending platforms have become very popular in China. Ant Group and JD Digits are certain fintech companies that have leverage in this market, and this platform has enabled small and medium-sized initiatives and individuals to access loans swiftly and proficiently.

Digital Insurance and InsurTech Solutions

Insurance companies in China nowadays offer highly customized insurance products to meet customers' needs. The introduction of insurance along with technology resulted in major benefits such as simplification of the application process, and insurtech giants like inclusive cover have captured the China insurtech by not just providing enhanced financial security to the customers but also contributing to the overall growth of the insurance market in China.

Peer –To- Peer Lending

The direct connection of individual borrowers with individual lenders using online platforms served as a diversified space for both the borrower with an alternative financing channel and the investors with an opportunity to diversify their investment portfolios.

Core Dimensions Necessary to Acquire Fintech License in China

The fintech marketplace of China is welcoming to local as well as foreign entities interested in establishing their business there, which is possible only after acquiring a fintech license. Fintech licensing in China could be procured only after fulfilling certain core dimensions based on which the preliminary segregation of the business plans takes place. The fintech footing in China must have a technology-driven and supporting fintech business plan. Technology is an important criterion due to the fast-paced and continuously changing tech environment of China. Another consideration is innovation and transformation, i.e., what innovative approach does the Fintech business plan have, and how could that innovation transform the financial marketplace place along with providing the utmost satisfaction to the customers with the maximization of a market value proposition? A financial service, if possible, should have a certain popularity before entering China's fintech market. Such services have a high probability of making a profit in the Chinese fintech zone. Recognition is an important factor for any business, but to obtain a fintech license in China, recognition must support the capital market of China, which is the key requirement for licensing a fintech in China, which is the net worth of the business. Ultimately, any business without any plans and prospects for its future without any developmental plan can never be part of China's fintech market. The Chinese fintech market is already a difficult marketplace that needs prior plans and procedures to succeed.

Benefits of Becoming a Licensed Fintech Entity in China

Massive Central and Private Investments

China is considered the world's most stable and investment-rich territory. This is due to the ease of gaining central and private investments and the trust that private investors have in the growing technology-driven fintech market.

STEM-Based Heavy Pool of Talent

China leads in producing the world's largest talent pool, having the highest number of science, technology, engineering, and mathematics graduates, showcasing a highly intellectual base that could aid and lead any fintech effectively. Any fintech industry established in China needs good human resources, and instead of outsourcing, every company prefers local manpower.

Favorable Regulations

The regulatory setup of China is pro-innovation and technology-oriented, due to which the regulatory authorities have kept an easy mindset for fintech-friendly innovations and made rules that could be easily adapted by these growing fintechs. This favourable regulation-oriented ecosystem makes it easy for foreign fintech entrants to make their place in China's fintech market.

Technology adaptive population

80% of the Chinese population these days makes payments using e-money applications. This trend showcases the flexible mindset of the population towards adopting new trends that could make their lives easy. This technology-adaptive population base results in the fintech industry having a bright future in China.

Our success story

We have 10+ years of experience in the fintech domain, along with licensing, company establishment, and other legal compliances. Our journey is full of success stories that we achieved through these years by making the right decisions for a budding or an established fintech business in Australia.

Hassle-free Fintech license procurement with Enterslice Fintech licensing services

Fintech licensing services must be availed by every fintech entity, especially when establishing it in a foreign country, because the rules of licensing vary worldwide. A potential and strategic fintech licensing plan ensures easy procurement of licenses because, in most of the nation, rejection of the license results in delay and add-on controls and compliances.

With the help of our consultation and advisory, you can focus on building the core of your fintech business while we will be ensuring the developing license compliance in accordance with the regulatory framework.

Why choose us

Vision & core values

Your trust is what we have faith in, and we can do anything to keep your trust intact. We engage the community without staking our core values and vision.

Customer-centric services

We understand that the core of any business is its employees. Our team of experts are polite and competitive and responds efficiently to the queries of each customer. Our belief is to develop long-term and trustworthy relationships.

Convenient and consistent

We provide our clients with an environment that is convenient and consistent for them. We work without friction and with the ties of trust and credibility.

Reputed & trustworthy

If you go by word of mouth, then all our clients give positive feedback for our services, making us a reputed and trustworthy organization.

Frequently Asked Questions

The authorities that regulate fintech in China are PBC, i.e., the People's Bank of China, which regulates Internet payments. CSRC (established in 1992) regulates Crowdfunding and internet funds. CBIRC (merged with CBRC and CIRC in 2018) regulates Internet lending (including P2P), Internet trust, Internet consumer finance, and Internet insurance. The Local Finance Bureau (initiated by Shanghai in 2002) regulates locally registered micro-finance companies, crowdfunding entities, etc.

There are two kinds of fintech licenses in China. The People's Bank of China (PBOC) issues payment licenses to entities engaged in payment service activities. The financial entity must have a minimum registered capital of RMB100 Million if they want to engage in financial activities across China, and second is the ICP license. The Internet content provider license is a mandatory license issued by the telecommunication authority of China due to the reliability of fintech on the Internet for providing services/information/content. The ICP license conditions are slightly restrictive towards foreign investments, where the foreign shareholding ratio of the applicants shall not be more than 50%.

There are around 3645 fintech startups in China. Certain startup that transformed into big giants are Alipay, which has an online escrow service that further developed into a comprehensive financial platform that offers banking, wealth management, credit scoring and insurance services. WeChat Pay was created by Tencent Holdings, another successful fintech giant in China. Com is a well-known and largest online retailer in China. It is controlled and established by JD.Com, and this online platform includes finance-oriented activities such as consumer lending, wealth management, and insurance.

The Chinese fintech market has more than 3000 fintech startups and will have generated revenue of USD 85 billion by 2022. The fintech solutions offered by the Chinese fintech industry are much more successful in comparison to any other country, considering the adoption of technology and its development.

The fintech sectors that are active in China are online payment-oriented fintech, such as mobile payment services like Tencent and Alibaba, online lending services that provide micro-loans online, and platforms for consumer financings such as the Ant group, asset management fintech services that use big data and artificial intelligence in securities investment and other traditional financial services which use new technology and KYC due diligence, these traditional services are such as banking, insurance, and other securities institutions.

No, PBOC, CSRC, and CBIRC jointly issued a notice stating further preventing and handling the risks in virtual currency speculative trading, which, as a crypto ban notice issued in 2021 by which China currently has prohibited any activity related to cryptocurrency, trading, mining or exchanges using cryptocurrency is banned and doesn’t have any existing regulation in china.

The primary law for cyber security in China is the Chinese Cyber Security Law, which came into effect in 2017. Then there is the Chinese Personal Information Protection Law, which came into effect in 2021. PBOC 2020 released the personal financial information protection specification, which also includes the cyber security and data protection-related framework for payment services license holders in China.

The Chinese regulatory authorities using China's intellectual property legal framework have protected fintech industries' inventions, utility models, and designs by patent law, trademark law, and trade secrets-oriented intellectual property rights law.

Yes, a foreign entity is allowed to do business operations in China under certain restrictions and compliances. Entities that are interested in carrying out online payment-related business require approval by the PBOC in the form of a payment service operator license upon the fulfilment of certain conditions, such as the fulfilment of minimum capital requirements, establishing that the financial institution has secured disaster recovery systems along with the detail of personal information and financial data generated and collected in china by the payment system operators, the payment service operator must have established compliances about corporate governance, risk management, safekeeping of funds and reserve for deposits. In 2020, NDRC and MOFCOM enlisted certain measures about the security review of foreign investments, which were published to enhance the measures that could safeguard the national security for foreign investments.

Yes, in China, for a budding fintech, there are various incentive schemes to strengthen their financial and technological base, incentives such as low/zero interest loans, preferential tax treatments, subsidies, and government guidance funds that help and aid fintech startups, with the support of Enterslice along with your licensing process we will assist you with these incentives schemes so that the building blocks of your fintech industry could be well designed and manageable after attaining the license.

There is no sandbox in the entire territory of China, but there are certain provinces like Beijing, Shanghai, and Shenzhen that are boosting local fintech innovations by introducing a sandbox program that allows exchanges in stock and securities where the future fintech companies can experiment with new technology initiatives.

Yes, we provide consultation to the fintech companies who want to procure fintech licenses in China. We assist businesses in business description statement formulation, financial resources statement support, background check support for fintech startups, or any other support needed for the fintech industry in China.

Money laundering is a criminal offence in China, and the public security authorities are responsible for investigating money laundering-related offences in China, which can impose charges against both an individual and a corporate entity. The penalty for a money laundering convict is 10 years of fixed imprisonment.

PRC is China's anti-money laundering law. The People Bank of China (PBOC) is the primary regulatory authority of AML issues, and the China Banking and Insurance Regulatory Commission (CBIRC) and the China Securities Regulatory Commission (CSRC) are the regulators of the banking, insurance, and securities sectors.

Certain requirements like customer due-diligence obligation, AML risk assessment obligation, customer identity, and transaction record-keeping obligation are certain obligations a fintech industry has to comply with at the time of registering itself in China.

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