China's National Financial Regulatory Administration published an implementation plan for the high-quality development of digital finance across the banking and insurance sectors, setting out a package of governance, technology, data, risk and supervisory initiatives to guide institutions’ digital transformation. The plan is structured around overall requirements, work tasks, and organisational and supervisory arrangements, and sets 33 tasks across six areas: strengthening digital finance governance (including requirements for institutions to set digital finance development plans, adapt management models, optimise organisational structures and build digital talent); improving digital financial services (including support for technology innovation, advanced manufacturing, the green economy, small and micro enterprises, rural revitalisation, regional coordination and trade digitalisation, as well as better services for groups such as older people); expanding the use of artificial intelligence and other frontier technologies through “AI + finance” and stronger research and development and infrastructure; unlocking the value of data through stronger data governance, standards and quality controls and a secure, trusted data ecosystem; reinforcing risk controls (including strategic, compliance, operational, outsourcing and liquidity risks, plus data and cyber security, algorithm model risk and external partnership risks); and advancing supervisory digital and intelligent transformation through re-engineered processes, intelligent analytics tools, and expanded regulatory big data and digital capabilities. The regulator will continue implementation work, including guiding institutions’ steady digital transformation while strengthening monitoring and analysis and maintaining a focus on preventing systemic financial risk.

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