According to the reports both countries had 29 fintech deals, suggesting a cooling investor sentiment in China which saw its height of 76 deals just three quarters ago. In the past few years, China has rolled out a burst of measures to rein in financial risks generating from its abecedarian online lending industry. Peer-to-peer lending, which matches individual questing for a loan with someone in wish to invest, has been the top target in a wave of government crackdowns. This sort of service offers credit to unbanked individuals who cannot otherwise get loans in a country without a mature unified credit system. But a lack of oversight led to intemperate frauds across the board. Thousands of peer-to-peer lending sites shut down due to enhanced regulation, which is estimated to leave as few as 300 players on the market by the end of 2019, Shanghai-based research firm Yingcai forecasted.
Same as China, India’s passion for finance technology is in part a result of the country’s lack of financial infrastructure. Lending startups are collecting steam as they, like their Chinese counterparts, tailor services to the country’s large unbanked and underbanked consumers and enterprises. Moves from tech leaders are also set to send ripples through the rest of the industry. Amazon finally followed its rivals Google Pay l, Paytm and PhonePe to commence offering peer-to-peer payments in the country. Walmart is closely watching how Flipkart, which it bought out last year, applies data to payments solution.
