Prof. Huang Yiping: Digital Technology Goes Big in Three Directions

May 30-2023   

During the launching ceremony of a FinTech case study competition, Prof. Huang Yiping pointed out that digital technology has three note-worthy development directions in the economic and financial spheres. He is Deputy Director of NSD and Director of PKU Institute of Digital Finance.

Digital technology can help the general public to improve the management of their investible capital, he said. Though the current economic recovery is held back by short-term insufficient demand, the underlying long-run challenge is how to raise the ratio of residential income in national income. With deepening aging will come heftier proportion of property income. Hence the need to harness digital technology to help the public better manage investible capital so as to increase their asset income and consumption outlay.

Digital technology is positioned to drive the economy to achieve long-term sustainable development. The core issue, however, concerns how to support innovations: the internet has been oriented towards consumption, so the attention is now on the industrial internet’s role in bettering financial services. For the economy to pull off long-term sustainable development, efficiency must increase continuously. Prof. Huang believed a great deal of potential thereof can be tapped.

One more note-worthy direction for digital technology is its role in buttressing and safeguarding financial stability. Prof. Huang emphasized the need to balance efficiency and stability in the process of innovation and leverage digital technology to assist financial institutions and regulatory authorities to better monitor and manage risks.