KPMG China made its first announcement of 50 leading Fintech companies operating in China, as the country is fast becoming one of the leading Fintech markets globally and an important innovation center in the Fintech sector.

Fintech companies are non-traditional financial institutions that are using technology to disrupt the financial sector, using innovation and efficient technology to provide better financial services and risk management.

Over the past several months, KPMG China shortlisted 50 leading Fintech companies. These companies were selected by over 20 senior partners from KPMG international member firms and KPMG China with specialists in several fields including IT, data analytics, capital markets, risk control, business operation, finance and tax management, venture capital, and entrepreneurial guidance.

Six criteria were used to evaluate shortlisted firms: (1) the application of advanced IT technologies and breakthroughs; (2) data collection, mining and execution driven by technology; (3) innovation in business structure and its disruption of traditional finance; (4) the ability to address current issues and improvement in financial efficiency; (5) valuation and recognition in the capital markets; and (6) development potential and future prospects. These six criteria cover the key factors in the Fintech sector.

According to Arthur Wang, Head of China Banking, KPMG China, the country is fast becoming one of the leading Fintech markets globally and an important innovation center in the Fintech sector.

The 50 leading Fintech companies in China are engaged in developing new technologies to push for the transformation of the financial services industry. They are proactively exploring and adopting advanced IT technology (such as big data, risk modeling, cloud computing and blockchain) to increase efficiency in financial services through disruptive innovation.

Simon Gleave, Asia Pacific partner-in-charge, Financial Services, KPMG, said: "We are very pleased to see that these innovative companies are pushing forward China's reform in the financial sector. A new ecology of the financial industry is taking shape and we believe these innovators will play important roles in a new generation of financial services."

The companies shortlisted were distinguished by their innovative business practices as well as their ability to develop technology-driven solutions for some of the biggest issues facing the financial services sector. The application of advanced technology is leading major breakthroughs in the financial services sector, for example risk quantification models, which have helped shorten the approval time for consumer loans, or big data, which is being harnessed to detect fraudulent behavior more effectively.