Cultivating China’s fintech ecosystem: the visible hand of the state

ABSTRACT

We investigate the role of open system intermediaries (OSIs), including incubators, accelerators and science parks, in the effort of the Chinese state to harness the innovative potential of fintech ventures. We conducted 50 semi-structured interviews and documented how the Chinese state uses OSIs to support strategically important financial services firms in nurturing cohorts of fintech ventures. This consequently gives rise to a tech-for-fin ecosystem, where innovative fintech ventures are moulded into becoming technology providers for financial services incumbents, while those wishing to fundamentally disrupt the established financial order are excluded from the various support mechanisms provided through OSIs.

KEYWORDS:

• fintech
• fin–tech–state triangle
• open system intermediaries
• entrepreneurial ecosystem
• incubator
• accelerator
• science park

JEL:

• G20
• G24
• L26
• O30

ACKNOWLEDGEMENTS

The article reflects only the authors’ views and the European Research Council (ERC) is not responsible for any use that may be made of the information it contains.

DISCLOSURE STATEMENT

No potential conflict of interest was reported by the authors.

Notes

1. Fintech has been defined as ‘technology enabled innovation in financial services that could result in new business models, applications, processes or products with an associated material effect on the provision of financial services’(Financial Stability Board, 2017, p. 7).

Additional information

Funding

This research was supported by the European Research Council (ERC) under the European Union's Horizon 2020 research and innovation programme [grant number 681337].