FINSERV
A commercial culture of growth However , for those more familiar with the culture of Chinese commerce , the restrictions came as no surprise . David Messenger , CEO of LianLian Global , one of China ’ s leading cross-border payments companies , says the moves are aimed at strengthening the industry by logical regulation and have not been unexpected for those within the industry .
Messenger is in a unique position in that he is a British national leading a China-born fintech company as it rolls out its expansion plan , first regionally , and now globally . Founded in Hangzhou , in 2004 , LianLian Group is already considered an international entity . Its main purpose is to connect merchants globally , through two-way channels whereby companies both within and outside China can have a streamlined transaction network .
He says , “ When you look at fintechs in China , really , there are two areas of regulation . One is the People ’ s Bank of China ( PBoC ) and the financial regulations . And then the other is the Cyber Administration Authority of China , which is the data security , data privacy
“ If you are one of the monopoly players in China , there ' s pressure to take very significant steps , make significant changes and do so relatively quickly ”
DAVID MESSENGER CEO , LIANLIAN GLOBAL regulations . In China , what often happens in new areas is the regulations are left flexible to let a market and solutions develop . Then , once the position is clear , the regulator brings in regulations that are broadly in line with the same objectives that regulators have all over the world .”
The process is , he says , a method that ultimately works best for the business climate and the customer because it closes areas of vulnerability , making the environment safer for business by providing greater stability in the financial system , data security and data privacy .
“ I think most people would find it hard to disagree with the principles behind these changes ,” says Messenger . “ The difference is the way those principles get executed in China . I think if you ' re a foreign company , you need to be able to understand the Chinese process , see the direction things are moving and also be ready for the fact that in China , things move at China speed . That ' s true on the business side , and it ' s also true on the regulatory side . So , it ' s where China has grown so fast and innovated so well because things do move fast .”
Ultimately , he says , the goals are very reasonable and companies have to adapt to the fact that the way things get done in China is different .
fintechmagazine . com 59