The global financial landscape is undergoing a transformative shift, driven by rapid advancements in blockchain technology, artificial intelligence (AI), and digital payment systems. In 2025, institutions across China and beyond are embracing digital transformation to enhance financial inclusion, improve customer experience, and strengthen data security. From major banks integrating AI into core operations to strategic partnerships enabling cryptocurrency purchases via traditional payment networks, the fusion of legacy finance and decentralized innovation is accelerating.
This article explores the latest developments in blockchain applications, fintech policy direction, and digital finance evolution—highlighting how institutions are leveraging technology to build smarter, safer, and more inclusive financial ecosystems.
Regulatory Support for Financial Innovation and Digital Transformation
In a significant move to support economic growth and digital modernization, the People's Bank of China (PBOC) and five other national departments jointly issued Guidelines on Financial Support for Boosting and Expanding Consumption. The policy emphasizes strengthening financial services for micro, small, and medium enterprises (MSMEs), individual businesses, and entrepreneurs—key drivers of employment and income growth.
The guidelines encourage localized relaxation of loan application conditions under the entrepreneurship guarantee loan program, streamline approval procedures, and promote innovative wealth management products tailored to household needs. These measures aim to increase property income while ensuring compliance and risk control.
At the same time, PBOC’s Technology Department continues to shape the future of financial infrastructure. Deputy Director Zhou Xiangkun announced plans to develop a new-phase FinTech development strategy, focusing on deepening financial digitization and intelligent transformation. This includes collaboration with the National Data Bureau on the “Data Element ×” pilot initiative, designed to help financial institutions unlock value from vast data resources in secure, compliant environments.
Blockchain and Payments: Bridging Traditional Finance with DeFi
One of the most groundbreaking developments in 2025 is the integration of blockchain technology into mainstream payment systems. Chainlink, a leading blockchain middleware provider, has partnered with Mastercard to enable users to buy cryptocurrencies directly using payment cards on-chain.
This collaboration leverages Chainlink’s decentralized oracle network and Mastercard’s global payment infrastructure. Transactions are executed through smart contracts, with ZeroHash providing liquidity and on-chain settlement support. Key fintech players such as Shift4 Payments, Swapper Finance, XSwap, and Uniswap have integrated into the system, effectively linking off-chain payments with decentralized finance (DeFi) protocols.
This advancement marks a pivotal step toward mass adoption of digital assets—allowing everyday consumers to seamlessly enter the crypto economy without leaving familiar financial environments.
Another milestone comes from Hong Kong, which released its Digital Asset Declaration 2.0, inviting public feedback on stablecoin regulation. This signals a clear intent to position Hong Kong as a global hub for responsible digital asset innovation.
Artificial Intelligence Reshaping Banking Operations
Artificial intelligence is no longer a futuristic concept—it's now central to banking strategy. At the 2024 World Artificial Intelligence Conference, Bank of Communications’ Vice President Qian Bin emphasized that AI has become a key driver of change in both global dynamics and financial services.
AI is already generating new productive forces within finance, enabling faster credit assessments, personalized customer service through chatbots, fraud detection, and automated investment advice. However, Qian also highlighted critical challenges: value alignment, ethical considerations, and data privacy.
PBOC Technology Department Director Li Wei echoed these sentiments, urging medium and small-sized banks to embrace digital transformation while cautiously adopting AI models. He stressed the need for robust governance frameworks that ensure transparency, accountability, and regulatory oversight—so that AI applications remain safe, explainable, and controllable.
Bank of Communications Chairman Ren Deqi further noted that improving the coverage and quality of inclusive finance hinges on effective use of digital tools. The bank is focusing on four strategic enhancements:
- Strengthening data empowerment to improve financing accessibility
- Integrating online and offline services ("dual-channel fusion") for greater convenience
- Expanding product offerings to meet diverse financial needs
- Deepening support for key sectors serving small businesses
These initiatives underscore a broader trend: banks are shifting from product-centric models to holistic, technology-driven ecosystems centered on user needs.
Data Infrastructure: The Foundation of Modern Finance
Behind every successful digital transformation lies a robust data architecture. Qilu Bank exemplifies this principle through its adoption of a lakehouse-based financial data platform, integrating data lakes and warehouses to unify storage, processing, and analytics capabilities.
This foundation enables real-time insights, enhances risk management, and supports personalized financial services. In recognition of its excellence in digital innovation and customer service, Qilu Bank won three awards at the 2025 Puyi Standards Asset & Wealth Management Industry Development Conference:
- Outstanding Wealth Management Urban Commercial Bank
- Outstanding Asset Management Urban Commercial Bank
- Outstanding Operational Management Capability Bank
It marks the fourth consecutive year the bank has received accolades at the prestigious “Golden Reputation Awards.”
Similarly, Industrial and Commercial Bank of China (ICBC) has achieved a major milestone with its Construction Fund Supervision Cloud Platform, surpassing RMB 100 billion in transaction volume. The platform uses cloud computing and smart contracts to ensure transparent fund management in construction projects—reducing risks and increasing efficiency.
Financial Literacy Meets Community Engagement
As technology evolves, so does the need for consumer education. Xinwang Bank recently launched an innovative public awareness campaign called Financial Safety Kiosk in Chengdu’s Shenshu Community.
Blending traditional outreach with immersive experiences, the event focused on two core themes: “Protecting Customer Rights, Enjoying Peaceful Life” and “Safeguard Your Money, Protect Your Happy Home.” Through interactive booths and scenario-based learning, residents learned how to identify scams, protect personal data, and make informed financial decisions.
Such grassroots efforts play a vital role in building trust and promoting a healthy financial ecosystem—one community at a time.
👉 See how blockchain-powered education platforms are making finance accessible to all.
Frequently Asked Questions (FAQ)
Q: What is the significance of Chainlink’s partnership with Mastercard?
A: This collaboration allows traditional payment card users to purchase cryptocurrencies directly on blockchain networks using fiat currency. It bridges centralized finance (CeFi) with decentralized finance (DeFi), making crypto more accessible to mainstream users.
Q: How are banks using AI responsibly?
A: Banks are adopting AI under strict governance frameworks that prioritize transparency, ethics, and regulatory compliance. Use cases include fraud detection, credit scoring, customer service automation, and risk modeling—all designed to enhance efficiency without compromising safety.
Q: What does “data element” mean in financial context?
A: Data elements refer to structured units of financial information—such as transaction records or customer profiles—that can be processed and analyzed. Leveraging them securely helps banks improve services and innovate responsibly.
Q: Why is Hong Kong updating its digital asset policy?
A: The Digital Asset Declaration 2.0 aims to establish a clear regulatory framework for stablecoins and other digital assets, fostering innovation while protecting investors and maintaining financial stability.
Q: How do lakehouse architectures benefit banks?
A: Lakehouse platforms combine the scalability of data lakes with the structured querying power of data warehouses. This enables real-time analytics, better decision-making, and seamless integration across banking operations.
Q: Can individuals participate in blockchain-based financial services today?
A: Yes—through platforms that support tokenized assets, DeFi lending, or crypto purchases via traditional apps. Integration with major payment networks is making entry easier than ever.
👉 Start exploring secure, user-friendly crypto services today.
Core Keywords: blockchain technology, digital finance, artificial intelligence in banking, cryptocurrency adoption, fintech innovation, data-driven banking, decentralized finance (DeFi), financial inclusion