The writer is deputy governor of the People’s Bank of China and heads the State Administration of Foreign Exchange

With the rise of big data, artificial intelligence, blockchain and cloud computing, the integration of finance and technology has picked up speed recently. New business models of internet-based finance such as mobile payments have reshaped not only the way we live but also the financial ecosystem. Fintech now affects everything from payments, lending and securities to insurance and wealth management. The advances have improved efficiency, lowered transaction costs and made the financial system more inclusive.

That said, fintech has not changed the nature of finance as a risky industry. Moreover, the sector’s cross-border, cross-industry and cross-regional nature means that financial risks spread ever faster and wider, with a bigger spillover effect. Network effects mean that fintech competition often leads to “winner-takes-all” outcomes including market monopolies and unfair competition.