China Financial Supervision and Administration: The main goal of digital finance development in the banking and insurance industry in the next five years is to achieve positive progress in digital transformation
The Zhitong Finance App learned that on December 26, the General Office of the State Financial Supervision and Administration issued a notice on the “Implementation Plan for the High-Quality Development of Digital Finance in the Banking and Insurance Industry”. The notice suggests that in the next five years, the main goal of digital finance development in the banking and insurance industry is to achieve positive progress in digital transformation. The driving support capacity of digital technology and the ability to convert the value of data elements will be significantly enhanced, and significant progress has been made in digital financial governance, digital financial services, digital technology application, data element development, and digital risk prevention and control.
Deeply explore and explore innovative application scenarios of digital technology and data elements, continuously improve the quality and efficiency of financial services in key areas such as technology, green, inclusion, and pension, increase financial support for major strategies, key areas, and weak links, form a number of digital finance good practices that can be replicated and promoted, promote better resource allocation, promote the expansion, quality and efficiency of financial services; efficiently promote the digital and intelligent transformation of supervision, enhance the ability to penetrate supervision, and comprehensively support the capacity building of the “Big Five Supervisors” to help financial supervision “prickly” and angular.
The original text is as follows:
Implementation Plan for the High-Quality Development of Digital Finance in the Banking and Insurance Industry
In order to implement the spirit of the Central Economic Work Conference and the Central Finance Work Conference, this implementation plan is specially formulated to encourage and guide the banking and insurance industry to accelerate the development of digital finance, give full play to the dual-wheel driving role of digital technology and data elements, in accordance with the “Guiding Opinions on Accomplishing the “Five Major Articles” in Finance (China Administration Development (2025) No. 8) and the relevant requirements of the “Guiding Opinions on the Banking and Insurance Industry” (Jinfa (2024) No. 11).
I. General Requirements
Guided by Xi Jinping's ideology of socialism with Chinese characteristics in the new era, fully implement the spirit of the 20th National Congress and the 20th Plenary Session of the Party, earnestly implement the arrangements of the Central Economic Work Conference and the Central Financial Work Conference, fully implement the new development concept, accelerate the construction of a new development pattern, further promote the digital transformation of the banking and insurance industry, accelerate the development of new quality productivity, promote the transformation of financial development methods, and create a new digital finance paradigm with Chinese characteristics and international competitiveness. Adhere to the political and popular nature of financial work, better serve the real economy and meet the needs of the masses for a better life. Quality development and a high level of safety, firmly adhere to the bottom line that systemic financial risks do not occur, and help build a digital China and financial power with the high-quality development of digital finance in the banking and insurance industry.
In the next five years, the main goal of digital finance development in the banking and insurance industry is to achieve positive progress in digital transformation. The driving support capacity of digital technology and the value conversion capacity of data elements have been significantly enhanced, and significant progress has been made in digital financial governance, digital financial services, digital technology application, data element development, digital risk prevention and control; further explore and explore innovative application scenarios of digital technology and data elements, continuously improve the quality and efficiency of financial services in key areas such as technology, green, inclusion, and pension; and increase financial support for major strategies, key areas, and weak links to form a number of replicable The promoted good practices of digital finance promote more optimized resource allocation, promote the expansion, quality and efficiency of financial services; efficiently promote the digital and intelligent transformation of supervision, enhance the ability to penetrate supervision, comprehensively support the capacity building of the “Big Five Supervisors”, and help financial supervision to be “prickly” and angular.
II. Job tasks
(1) Establishing and improving digital finance governance mechanisms
1. Strengthen the top-level design of digital finance. Financial institutions should actively explore digital finance development paths suitable for themselves, establish a “game of chess” mentality, and scientifically formulate digital finance development plans in an integrated manner. Set up a leading group or committee responsible for digital finance, clarify the lead department and division of responsibilities, establish a digital finance evaluation and assessment system, and incorporate it into the overall institutional assessment plan.
2. Build a digital operation system. Promote the construction of a digital operation capability system and process re-engineering, gradually form a digital management system for online front desk services, intelligent operation in the middle office, and intensive back-office processing, and promote the transformation and upgrading of business outlets. Make full use of digital technology to achieve convergence and integration of information flow, business flow, and capital flow, and improve management efficiency.
3. Build a digital organizational system. Optimize organizational structures and institutional processes, promote deep integration and efficient collaboration between business, technology and data, and achieve full sharing of resources. Improve incentive mechanisms such as “leading the way” and “innovating” to promote the incubation and promotion of scientific and technological innovation achievements, and stimulate the enthusiasm and creativity of employees to participate in digital construction. Actively participate in multi-party exchanges and cooperation, and fully draw on and absorb external good practices.
4. Establish a digital talent system. In terms of talent introduction and recruitment policies, we lean towards digitalization, and encourage professionals with a digital background to enter the board of directors and management. Strengthen incentives for leading talent and core experts. Focus on cultivating “industry, skill, and mathematics” complex talents. Fully popularize and promote digital culture, promote the integration of digital concepts into the daily operation and management of organizations, and accelerate the improvement of the digital capabilities and level of all employees.
(2) Promoting digital financial services with high quality
5. Support the innovation and growth of technology-based enterprises. Focusing on the “two highs and one light” characteristics of technology-based enterprises, a large data set of science and innovation data sets was established to identify the enterprise. Use the intelligent approval and credit model rationally to improve approval efficiency, and provide additional offline application channels for customers who have not passed online approval. Explore and develop insurance services related to data assets, cybersecurity, etc., to provide risk protection for scientific and technological innovation applications.
6. Serve the development of advanced manufacturing industries. Use the industrial Internet and industrial knowledge maps to improve data collection, analysis and application capabilities for manufacturing enterprises in production transactions, warehousing and logistics. Strengthen credit support for the digital transformation of the manufacturing industry, use big data, blockchain and other technical standards to develop supply chain finance, and actively meet the financing needs of upstream and downstream enterprises in the industrial chain. Actively use digital technology to provide insurance compensation services such as the first (set) of major technical equipment and the first batch of new materials to enhance safety risk prevention capabilities.
7. Contributing to the development of a green economy. Technical means such as satellite remote sensing and intelligent sensing and external data such as environmental ratings are comprehensively used to identify environmental risks in financing projects. Explore the development of automated environmental, social and governance risk (ESG) rating tools and environmental benefit assessment models, and evaluate green industries and projects in multi-dimensional analysis. Encourage the development of digital financial products and services around corporate carbon emission rights, carbon sink revenue rights, etc. Use digital technology to optimize the green finance service model to effectively help carbon peak and carbon neutrality.
8. Deepen financial services for small and micro enterprises. Expand the application of logistics, capital flow, and information flow data for small and micro enterprises, and improve the intelligent credit granting algorithm model by combining external data such as industrial and commercial taxation. Build an online integrated service platform for small and micro finance, and carry out online business processes such as approval, contract signing, and mortgage processing in compliance. Encourage small and medium-sized financial institutions to give full play to their comparative advantages and build a digital finance ecosystem for small and micro enterprises that meet their own characteristics.
9. Strengthen the popularization of financial services. Integrate the life scenarios of urban and rural residents, strengthen big data analysis, and develop convenient, flexible, and “thousands of people, thousands of faces” digital financial products in the fields of entrepreneurship, employment, education and consumption. Promote data integration and collaboration with health care and pension service institutions, and improve financial service capabilities in the fields of medical care and old-age care. Improve the basic security capabilities of outlets, preserve traditional services such as necessary cash, strengthen the construction of barrier-free functions and equipment for the elderly and the disabled, bridge the “digital divide”, and effectively protect the legitimate rights and interests of financial consumers.
10. Serve rural revitalization. Focus on the modern rural industrial system, key enterprises, and key areas of the “three rural areas”, strengthen digital platform system construction and data docking, and enhance the financial service capabilities of the “three rural areas”. Actively use the Internet of Things and artificial intelligence recognition technology to explore and rationally broaden the scope of biological asset guarantees and collateral. Make full use of next-generation mobile communication networks, mobile interaction and other technical means to extend the service radius and help build digital villages.
11. Support regional collaborative development. Assist major national regional development strategies such as the collaborative development of Beijing-Tianjin-Hebei Province, Yangtze River Economic Belt development, Guangdong-Hong Kong-Macao Greater Bay Area construction, Yangtze River Delta integrated development, ecological protection and high-quality development of the Yellow River Basin, provide digital financial services according to local conditions, actively participate in smart city construction, explore data integration application practices, and provide investment and financing support and insurance guarantees for industrial transformation, upgrading and diversified development within the region. Encourage inter-agency exchanges and cooperation to promote the joint construction and sharing of digital finance development models.
12. Support the digitalization of trade. Encourage financial institutions to use digital technology to empower them, strengthen the application of trade data information such as customs and taxation, and steadily innovate financial products and service models based on electronic trade documents. Strengthen cooperation and interface with digital trade platform companies to create a convenient environment for the use of electronic trade documents such as electronic bills of lading. Actively participate in the construction of digital infrastructure for shipping trade and provide high-quality financial services for Chinese enterprises to “go global” and “Belt and Road”.
(3) Give full play to the leading role of new technology innovation such as artificial intelligence
13. Accelerate the development of “artificial intelligence+finance”. Financial institutions that are in a position to do so are encouraged to strengthen the safe development and application of artificial intelligence, build enterprise-level artificial intelligence platforms, implement centralized management and operation of model requirements, implement centralized management and operation, evaluation and exit, etc., support systematic and platform-based services of algorithm models, and improve artificial intelligence modeling and safe application capabilities. Actively build an artificial intelligence development and application ecosystem in the financial field, and accelerate the formation of advantageous fields for financial applications.
14. Continue to promote the application of new technologies. Actively explore innovative applications of cutting-edge science and technology such as quantum computing, Beidou satellite technology, blockchain, and virtual reality/augmented reality in the financial field. Support financial institutions to build enterprise-level technology platforms such as big data, the Internet of Things, and private computing, strengthen cooperation with national strategic scientific and technological forces in industry-academia research and use, etc., and promote the accelerated transformation of scientific and technological innovation achievements.
15. Strengthen scientific and technological research and development capacity building. Further promote enterprise-level application architectures, technical architectures, and security infrastructure, and comprehensively improve the management level of multi-technology stacks and complex architectures. Enhance technological autonomy and control capabilities. Steadily implement distributed and microservice transformation, optimize service grid infrastructure, and enhance the commercialization service capabilities of basic platforms. Explore the construction of low-code and no-code development platforms to promote architecture and development visualization. Optimize integrated coordination mechanisms for requirements, R&D, testing, production and operation to enhance agile delivery capabilities.
16. Optimize the allocation and investment of scientific and technological resources. Focus on the core business of financial institutions, increase investment in science and technology research and development, and encourage direct research and development of digital finance scenarios and applications at the front line of business. Improve the level of performance management of science and technology projects, and research and establish measurement standards and evaluation systems for science and technology input and output to enable business.
17. Actively promote new digital infrastructure. Support the hierarchical layout of large financial institutions and accelerate the construction of multi-level, multi-location multi-active data centers adapted to online business, massive data storage, and distributed computing. Forward-looking layout of intelligent computing power network facilities, with priority deployment at the national hub nodes of the “East Digital Western Computing” project. Promote the construction of green data centers and continue to increase the proportion of green electricity used. Promote cloud-based infrastructure management and make full use of next-generation mobile communication technology and the Internet of Things to establish secure external connections. Build a next-generation operation and maintenance system adapted to distributed architectures and digital transformation, and improve infrastructure security application management mechanisms.
18. Strengthen the export of technology to peers. Large technology-leading financial institutions and their technology subsidiaries are encouraged to accurately meet needs in accordance with the principles of marketization and the rule of law, export technology products and services to small and medium-sized financial institutions, and help small and medium-sized financial institutions digitally transform. Support financial institutions that are in a position to do so to provide data center computing power support to small and medium-sized financial institutions, and encourage financial institutions to jointly build shared digital infrastructure.
(4) Effectively stimulate the potential of data elements
19. Consolidate the foundation of data governance capabilities. Strengthen the construction of enterprise-level data governance systems, improve data governance systems, clarify responsible subjects, establish effective incentive and restraint mechanisms, and enhance data governance capabilities in big data and artificial intelligence application scenarios. Establish and improve enterprise-level data asset management systems to improve data resource management capabilities. Strengthen the construction of data standards and control of data quality sources, promote the same source governance of regulatory data and management data, and raise the level of intelligent data governance.
20. Promote a high level of application of financial data. Improve data integration, management and application capabilities, and deepen large-scale application of data in marketing, operation, risk control, decision-making, etc. Encourage the construction of enterprise-level data centers, develop capacity building for data services in an integrated manner, and improve data product development and operation capabilities. Lower the technical threshold for data application and comprehensively raise the level of employee usage.
21. Build a secure and trustworthy data ecosystem. Actively participate in the national “Data Factor ×” campaign, integrate and utilize various cross-industry data, give full play to the amplification, superposition and multiplication effects of data elements, and empower financial service innovation and efficiency improvement. Under the premise of legal compliance, make rational use of data sharing technology to steadily promote the orderly sharing, circulation, development and utilization of data elements, and improve the resilience of the financial system to risks.
(5) Firmly adhere to the bottom line of risk
22. Strengthen risk management in the digital world. Strengthen strategic risk management in digital transformation to ensure that digital transformation strategies and implementation processes match one's own development strategy, technical strength, and risk control capabilities. Strengthen compliance management for innovative businesses, continuously improve compliance review mechanisms for new digital finance products, new businesses, and new models, carry out risk assessments before digital technology is put into production and application, and formulate corresponding risk management strategies. Strengthen the management of liquidity risk, operational risk and outsourcing risk in a digital environment.
23. Focus on building an intelligent risk control system. Build an enterprise-level digital risk management platform, enrich internal and external risk information data sources, and use machine learning, graph data and other technologies to improve risk monitoring, analysis and early warning capabilities. Embed digital risk control tools into processes such as credit approval, post-loan management, and anti-fraud to enhance the overall risk identification and prevention capabilities of financial institutions. Regularly iterate risk management strategies and quantitative models, and establish a mechanism for sharing and reusing risk control tools.
24. Effectively improve the safe application capabilities of artificial intelligence technology. Establish and improve the classification and hierarchical management framework and process for AI security applications, configure algorithm construction and selection strategies according to application scenario requirements, strengthen the operation monitoring of artificial intelligence in business scenarios, and ensure the adequacy, flexibility and security of computing, network, storage and data resource deployment. Establish and improve manual intervention mechanisms covering important business processes and key nodes.
25. Effectively manage the risk of the algorithm model. Promote the construction of an enterprise-level model risk management platform, establish a full-cycle management system for algorithm models, strengthen monitoring, evaluation and iterative management, effectively guarantee model robustness and reliability, prevent model drift, and continuously improve algorithm transparency and interpretability. Evaluate the anti-attack capability of online application models to improve the security of model deployment. Establish a scientific and technological ethics governance mechanism, strengthen the protection of financial consumer rights and interests, and prevent discrimination in algorithms.
26. Strengthen data security protection. Implement data classification and hierarchical management, strengthen the construction of technical prevention measures, and improve working mechanisms for monitoring and early warning, incident reporting, and risk management. The focus is on strengthening the data security protection capabilities of digital channels and key system platforms such as apps and applets, and strengthening risk assessment and analysis of activities such as data exchange, cooperative outsourcing, and data cross-border. Establish and improve personal information protection systems, and implement full-process management of personal information of financial consumers. Customer information shall not be collected or used illegally. Conduct data security education and training for institutional employees and data security publicity activities for financial consumers to raise data security awareness and risk prevention capabilities.
27. Improve cybersecurity resilience. Consolidate the main responsibility for cybersecurity, establish a comprehensive cybersecurity defense system covering domestic and foreign branches, strengthen the extended control of cybersecurity boundaries in the digital finance ecosystem, and raise the level of in-depth defense. Accelerate the construction of security operation systems and platforms, normalize cyber attack and defense exercises, improve threat situation awareness, risk monitoring and early warning, and collaborative handling capabilities, and effectively respond to cyber attacks and important data asset security threats.
28. Prevent the risk of external cooperation in the digital ecosystem. Strengthen the management of digital finance business partner institutions, and clarify responsibilities in cybersecurity, data security, consumer protection, etc. Establish a risk assessment and management system for partners, strengthen risk monitoring, and prevent external third party risks from being transmitted to financial institutions. Strengthen digital supply chain security management and establish review management mechanisms for innovative technology and open source software applications.
(6) Efficiently promote the digital and intelligent transformation of supervision
29. Promote the digital re-engineering of regulatory processes. Vigorously improve the level of digitalization and intelligence of key supervisory processes such as market access, off-site supervision, on-site inspections and administrative penalties, use digital technology to give full play to the value of data elements, improve coordination capabilities and work quality and efficiency, optimize supervision methods and processes, and comprehensively support the “Big Five Supervisory” capacity building.
30. Vigorously promote the development of intelligent analysis tools. Strengthen the application of artificial intelligence and other technologies, and enrich penetrating supervision tools and methods. Optimize monitoring indicators and evaluation models, and strengthen monitoring and early warning of illegal financial activities. Establish models to jointly build shared governance mechanisms, improve the forward-looking nature of financial risk monitoring and analysis, and enhance the ability to identify, warn, expose, and dispose of risks early.
31. Further promote the construction of regulatory big data. Accelerate the construction of “One Form Access” for regulatory reports, achieve uniform standards, unified collection and unified management of regulatory data resources, and improve the integrity, accuracy and timeliness of regulatory data. Enrich regulatory big data source channels, enhance the ability to integrate and apply regulatory data with external data, and give full play to the role of data elements in strengthening risk monitoring and early warning and dynamically capturing abnormal behavior of market players. Strengthen the governance of regulatory data, strengthen the quality management of supervisory data, implement regulatory data classification and hierarchical management requirements, and ensure the security of supervisory data.
32. Consolidate the foundation of regulatory infrastructure. Integrate and strengthen computing power resources to provide green, intensive, safe and reliable integrated computing power services. Optimize the network architecture to support business collaboration and data sharing across regions and levels. Improve security protection and intelligent operation and maintenance systems, flexibly meet the needs of innovative new technology applications, and improve computing power support capabilities and business continuity guarantee capabilities.
33. Strengthen the construction of digital human resources. Vigorously cultivate and introduce data analysis and regulatory technology professionals, improve supervisors' digital supervision capabilities, and cultivate complex talents who understand technology, data, and supervisory business. Strengthen digital training, enhance supervisors' ability to model data and use intelligent tools, and build an intelligent supervisory talent pool.
III. Organizational Assurance, Supervision and Management
(1) Strengthen organizational guarantees. Financial institutions should fully understand the importance of promoting the high-quality development of digital finance, strengthen organizational leadership, clarify the division of tasks, implement responsibilities, formulate work plans and schedules in an integrated manner, strengthen the guarantee of supporting resources, prevent related risks, and ensure the implementation of various tasks. It is necessary to strengthen the follow-up and analysis of digital finance work, regularly summarize progress, strengthen exchanges, increase publicity on good practice cases, and promote digital finance brand building.
(2) Further promote guidance. The General Administration of Financial Supervision is strengthening the coordination of digital finance work in the banking and insurance industry to promote the digital and intelligent transformation of supervision. Each financial supervisory authority formulates work promotion measures and specific implementation plans within its jurisdiction, supports and guides financial institutions under its jurisdiction to carry out in-depth practices, strengthen cooperation with local governments, and establish a favorable digital finance development environment.
(3) Strengthen supervision and evaluation. The financial management department establishes a digital finance evaluation system to monitor and analyze the level and effectiveness of digital finance development. Each financial supervisory authority may explore the establishment of an evaluation system or plan that conforms to the actual situation and characteristics of the region, and carry out regular analysis and judgment. Supervisory authorities at all levels should strengthen supervision and guidance to correct problems such as inadequate implementation of policies and poor implementation.
(4) Strengthen supervision and management. The General Administration of Financial Supervision and dispatched agencies at all levels supervise and manage digital finance activities in accordance with the law, and take measures such as risk reminders, supervisory interviews, supervisory notifications, administrative penalties and accountability for related risks and illegal business practices to ensure the healthy development of digital finance.
(5) Do a good job in risk monitoring and response. The General Administration of Financial Supervision and dispatching agencies at all levels have strengthened risk monitoring related to digital finance, established mechanisms for analysis, evaluation, monitoring, early warning, response and disposal, improved supervision tools and methods, and urged financial institutions to improve risk prevention and control capabilities in the fields of cybersecurity and data security.
(6) Promoting industry exchanges. The General Administration of Financial Supervision and dispatching agencies at all levels should step up investigation and research, actively promote the exchange of digital finance experiences among agencies under their jurisdiction, summarize good practices in digital finance in a timely manner, and create a new situation in the development of digital finance through training and discussion, skill contests, and case promotion. Industry self-regulatory organizations should actively play a role as a bridge and link to build a platform for digital finance policy promotion and experience sharing.
This article was edited from: China Financial Supervisory Administration's official website; Zhitong Finance Editor: Chen Xiaoyi.