Bank of China Plans to Invest in FinTech Innovation

Bank of China plans to invest in FinTech innovation, along with the increase of funding for Blockchain and the Internet of Things (IoT). Reportedly, the bank has been already applying Blockchain technology in 12 different projects.

10 August, AtoZ Markets – The state-run Bank of China, not the central bank of China, has announced its plans to increase its investment in FinTech innovation. One of the local news outlets is citing comments from a press conference on the banking industry.

Bank of China Plans to Invest in FinTech Innovation

According to online reports, the Bank of China’s Chief Information Officer (CIO), Liu Qiuwan, has stated that the institution is planning to increase its investment in research and development of technologies, including Blockchain, the Internet of Things and FinTech. The investment will reportedly account for more than 1 percent of the bank’s operating annual income, which in 2017, has stood at 483.7 billion yuan ($70.9 trillion).

Mr. Qiuwan has also stated that in 2018, the Bank of China will finish the construction of three major technological platforms. These comprise cloud computing, big data, and artificial intelligence platform. 

He also had added that Bank of China has been already applying Blockchain technology in 12 different projects “mainly focusing on data sharing, cross-border payment, digital currency, digital bills, etc.” 

China Blockchain Adoption

Mr. Qiuwan has been quoted as saying:

 “According to the statistics of the global blockchain enterprise patent rankings in 2017, Bank of China has 11 patent applications for blockchain, ranking 20th in the global business and ranking first in the domestic banking industry.”

One of the recent Blockchain patents from the bank has been aimed at “solv[ing] the problem of storage space in new blocks without compromising on traceability and immutability.”

Earlier this July, we reported that the fourth largest bank in the world in terms of assets, the Agricultural Bank of China, has reportedly issued its first loan on Blockchain. 

According to local news outlets, the Chinese governmental bank ABC has announced it issued a loan worth approximately $300,000 backed by a piece of agricultural land in the Guizhou province. Specifically, one of the “Big Four” Chinese lenders will “buil[d] blocks with local people, pilot land and resources bureaus, and agriculture and animal husbandry bureaus,” through the blockchain system, adding that the loan aimed to “support the local tea industry.”

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