A Discussion of FinTech’s impacts on the Market Structure of China’s Banking and the regulation problems

FinTech has profoundly changed the products, models and institutions of the banking industry. It has also brought many problems while improving banking's performance, which poses great challenge to the banking industry. This paper analyzes the impact of Fintech on China's banking industry and its regulation problems from the perspective of market structure. FinTech has a “head effect” and a “long tail effect” on the market concentration of the banking industry. In terms of market barriers, FinTech has lowered some technical barriers and information barriers and resulting in new access barriers; In terms of finance functions, FinTech has reduced the horizontal differentiation of banking products and strengthened the vertical differentiation of products. Financial supervision should fully consider the changes in the market structure of banking industry and build a coordination mechanism for the competition policy and risk supervision of the banking industry.