China has been at the frontier of digital banking innovation since 2014, when their tech giants WeChat and AliPay began driving banks to play catch up with raised user expectations. Creating an entirely different financial ecosystem than what one might experience in North America or even Europe, China’s banking is completely digitally integrated, with cash a long lost piece of the past. In this episode, Eyal sits down with banking innovation expert and author of “Cashless - China’s Digital Currency Revolution”, Richard Turrin, to discuss how China got here and where they are headed. They discuss the inner workings of China’s digital ecosystem, the role of WeChat and Alipay and the launch of Digital Yuan, and what regions with open banking aspirations can learn from China’s experience.
Specifically they discuss:
How market demand fuelled China’s cashless lifestyle;
China’s different approach to open banking compared to the Western world;
Whether or not digital yuan is levelling the playing field for banks;
How CBDCs will coexist with payment apps;
What others can learn from China’s digital banking journey