In the global wave of digital finance, FinTech is no longer just synonymous with innovative payments or digital banking, but is fully penetrating into the industrial supply chain. Tsai Yu-ling, chairman of the Asian Financial Technology Alliance and honorary chairman of the Taiwan Financial Technology Association, stated on the 30th at the 'Financial Technology and Blockchain Joint Press Conference': 'By 2030, the largest FinTech market in the world will be in Asia, and Taiwan cannot be absent; it should play a key role in supply chain finance.'
She emphasized that FinTech is not only about financial tool innovation but will also become the core technology for supply chain operations, redefining corporate financial management and transaction processes through the integration of cash flow, logistics, and information flow.
FinTech is not just innovation, but an upgraded version of the supply chain.
Tsai Yu-ling pointed out that traditional supply chains face issues such as fragmented cash flow, low financing efficiency, and high cross-border payment costs, which are precisely the entry points for FinTech. She believes that the greatest advantage for Taiwan's FinTech development lies in the supply chain, and should integrate cash flow and logistics, enhance cross-border settlement capabilities, strengthen supply chain financing efficiency, and introduce tools like stablecoins to accelerate overall transaction flow.
Technology going abroad: Taiwan can become a technology supplier for international financial infrastructure.
In addition to local applications, Tsai Yu-ling also urged the government and industry to adopt a dual-track layout, with the first being regulatory standards aligned with international norms, introducing global trends and compliance standards; the second is participating in international financial infrastructure as a 'technology provider'.
She mentioned that among the members of the Asian Financial Technology Alliance, there are countries with populations comparable to or larger than Taiwan, such as Nepal and Sri Lanka, which are likely to rely on Taiwan's technical support in the future, particularly in building digital payment, risk control modules, and supply chain financing platforms. Taiwan should actively export solutions to seize the global vertical FinTech market.
BVP research: FinTech is about to reshape every node in the supply chain.
According to a paper published last year by American venture capital firm Bessemer Venture Partners (BVP) (Why FinTech is the Next Supply Chain Frontier), the supply chain is facing six major pain points: difficulties in cross-border payments, financing delays, fragmented data, trust gaps in risk, unstructured data that cannot be processed, and chaotic actual payment processes.
The addition of FinTech, especially in conjunction with AI and large language models (LLMs), can achieve automation of the entire supply chain transaction process, data standardization, and real-time settlement, for example:
AI automatically processes invoices, payment terms, and financial reconciliation;
An intelligent payment platform that combines shipping, insurance, and financing conditions;
Integration of ERP, CRM, and financial APIs to form supply chain finance SaaS;
Assist small and medium-sized suppliers in obtaining real-time credit analysis and financing opportunities.
BVP analysis indicates that supply chain finance will become the next wave of innovation in vertical FinTech, following the proliferation of enterprise procurement and operational SaaS, with financial modules being the next field to penetrate.
Financial functions will be embedded in the core processes of the supply chain, forming a new operational model.
Tsai Yu-ling and BVP's observations coincide. She pointed out that in the future, companies managing logistics can also monitor cash flow and capital allocation in real-time through digital platforms, making finance no longer a backend operation, but an embedded, real-time, and modular core function.
Gao Qi-jun, chairman of the Taiwan Blockchain Enthusiasts Association, added that the World Economic Forum (WEF) predicted as early as 2015: 'The essence of finance has not changed; what has changed is that technology has made these services more efficient and less frictional.'
Taiwan's FinTech strategy must move from 'supply chain' to 'global market'.
From government policies to industry practices, FinTech is becoming an important engine for Taiwan to leap to a regional digital economy center. And the supply chain is the main battlefield of this revolution.
As Tsai Yu-ling said: 'FinTech will no longer be just an auxiliary tool but a part of the supply chain strategy. We cannot be absent, nor can we be one step behind.'
This article is authorized for reprint from: (Chain News)
Original title: (Taiwan FinTech should seize the supply chain finance battlefield. Tsai Yu-ling: Asia will become the largest market, and Taiwan cannot be absent)
Original author: Elponcho
'FinTech should seize supply chain finance! Tsai Yu-ling: Asia will become the largest market, and Taiwan cannot be absent.' This article was first published in 'Crypto City.'