Digital Technology: The End of Financial Evolution

liu, tempo Date: 2021-08-02 09:45:44
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Discussions about the direction of financial evolution continue.


It is foreseeable that different people will have different understandings of the direction of financial evolution. It is based on this that has led to the emergence of so many new financial species in the post-Internet finance era. This is the case for financial technology and the same for digital technology.


In this tide, some people hold on to the flow of thinking and continue to find new harvest objects; some people have sunk into the rivers of industrial empowerment long ago, looking for new treasures of financial evolution.


The long-term existence of these phenomena has blurred our vision. As a result, a question began to arise, what is the end of financial evolution?


Some people still confine the end of financial evolution to the financial level, while others have already jumped out of the financial ties and look at the future of finance from a higher level.


Recently, I have also been thinking about this issue, and have had some discussions with my colleagues. Obviously, this kind of discussion is still uncertain, because our thinking dimensions are different, but I am more inclined to regard digital technology as the end of financial evolution.


The reason why people still confine the end of financial evolution to finance is only because they have enjoyed their past and present dividends in finance, and tried to continue this dividend in this way.


If we only use the concept of finance to look at the end of financial evolution, perhaps we will fall into the vicious circle of Internet finance. Why? Because of this lack of subversive transformation of the financial industry, it is only a patchwork on the Internet finance, and it has not really made financial changes and upgrades.


Therefore, in many cases, the financial evolution rooted in the finance itself is only a safe haven. The purpose is to escape policy supervision and management difficulties, rather than to find a new model of financial evolution.


When the financial industry really needs the blessing of new concepts, this “new technology + finance”-led development model may be effective.


Because it can activate the energy of the financial industry that has not been released in the Internet era, but if we think carefully, we still find that the underlying logic of this evolution is actually the same as Internet finance. It’s just that the objects at this stage have changed from the C-side traffic in the Internet finance era to the B-side traffic in the financial technology era.


Those financial players who make Internet technology helpless will indeed make a difference with the addition of new technologies, and even make themselves a new face. However, if the end of financial evolution is still finance, then the so-called financial evolution is actually just a different pronoun. Despite this, we still see many people enjoying it, and some even continue to advocate the positive role of Internet finance.


Therefore, the financial evolution in the post-Internet finance era is actually still following the logical development of Internet finance, but only a name and appearance have been changed.


Therefore, financial evolution targeting financial industry objects is only a transitional stage, and it is a “middle way” without much imagination. Only by completely changing the nature of finance and examining and practicing the new evolution of finance from a higher dimension can the development of the financial industry enter a new stage of development.


financial technology


From this perspective, the evolution of finance has actually begun to divide. The difference in direction eventually led to the players who bless the new evolution of finance to go in different directions and have different imagination.


For those players who are still obsessed with concepts and flow thinking, the so-called evolution in their mouths is only a temporary and transitional way. When the wind passes, everything will return to the past. The so-called financial evolution is just their way of harvesting new traffic.


In the short term, this sporty, irrational development model can indeed achieve rapid development effects, and even creates an illusion that they have found a new way of financial evolution. However, when the attractiveness of the concept ceases and the traffic dividend peaks, their seemingly rapid development momentum begins to abruptly cease.


As a result, new concepts and models will appear, and history will begin to repeat itself.


Obviously, blindly viewing financial evolution as a conceptual approach, and the development it brings is also temporary and unsustainable. They will certainly not be able to lead financial evolution to the right future.


What needs to be clear is that these players are not in the minority, but in the majority. Whether it is the leading companies that survived the reshuffle of Internet finance, or those Internet giants holding high the banner of financial technology, in fact, more and more of them are pouring into such a track.


The continuous participation of players and the hot atmosphere created by the short-term bonus have made many people mistakenly believe that this is the right direction of financial evolution, and this is the end of financial evolution. However, they ignore the nature of finance, and even more overlook the market environment and background in which financial evolution is located.


From the perspective of the nature of finance, the value of finance lies in supporting and opening up the real industry, rather than building the financial industry into an “independent kingdom”. Only by integrating finance with the real industry as much as possible, or even integrating with the real industry. Only as a whole can the essence of finance be brought into full play.


Obviously, the majority of players did not take into account the true nature of finance. They just started to build a wall between the financial industry and the real economy to reap dividends.


From the perspective of financial evolution, the continuous maturity and landing of new technologies are subverting and changing the development logic of traditional industries and even the Internet industry.


Under the impact of the wave of digitization and intelligence, the production factors in the traditional sense are undergoing essential changes, and digital is becoming a new production factor.


Finance, as an industry closely related to people’s production and life, its future must be digital, and its ultimate form must also be digital. Because only when the digitization of the financial industry is truly realized, can the digitization of the entire economy and society really run through, and the digital age is not empty talk.


As the so-called truth is in the hands of a few people, there are always people who look at it from a more long-term perspective and a more high-end dimension when it comes to dealing with financial evolution. As a result, they abandon the shallow hiding, the development model represented by the pursuit of dividends, and thus focus on the broader ocean of digital technology. Through more thorough and subversive changes in finance, we can better give play to the essence of finance and make the evolution of finance more imaginative.


From the perspective of digitalization, we can better think about and seek the ultimate proposition of financial evolution. Using digital technology as the end of financial evolution has brought the previously impoverished financial evolution into a brand-new perspective.


When digital technology becomes the end of financial evolution, so-called finance is no longer simple finance, but has become the “capillaries” of the Unicom industry, and the functions of finance have been maximized;


When digital technology became the end of financial evolution, the boundary between finance and external industries began to be gradually bridged, and the infrastructure of the digital economy era was truly constructed, and the walls were destroyed;


When digital technology becomes the end of financial evolution, the function and role of finance is no longer traditional and old-fashioned investment and financial management, but has become a powerful tool for industrial transformation and digital transformation.


On this track where only a few people run, we see a new future with unlimited imagination.


They are derived from finance, but they are no longer finance in the traditional sense. This is the ultimate appearance of financial evolution, and this is the real future of financial evolution.

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