How FinTechs became state surveillance arms in Asia
How FinTechs became state surveillance arms in Asia
How FinTechs became state surveillance arms in Asia
Asian FinTech has merged finance with state surveillance, using AI, digital IDs and super-apps to embed government oversight into everyday economic life.
Whilst earlier concepts of plain surveillance included security cameras, advancements in technology had brought a new world of watching you. For several years now, the world has begun to enter what many researchers and political scientists are calling the fourth industrial revolution, with Artificial Intelligence leading said revolution. FinTech in Asia has undergone rapid expansion due to the world becoming more integrated through technology. Since the early 2000s, companies such as AliPay were amongst the lucky first to enter the new market of e-commerce, and essentially laid the groundwork for future companies. However, one issue that seemingly continues to reappear only amongst Asian companies is the lack of trust. Many companies have found that trust is still a barrier to reaching target audiences such as the elderly, or people who are in more rural areas. Many customers have a right to be concerned in terms of trust, as this report will continue to explore the who, what, where and why’s surrounding surveillance and Asian Fintechs, as well as providing many different nation case studies to provide a variety of evidence. Before delving deeper into answering the statement, it is important to remember that ever since the conception of the internet and computers in the third industrial revolution, surveillance of citizens has always occurred; this shall be elaborated upon.
The internet has always been a place for state surveillance in Asia. Countries such as North Korea and China are ranked highest amongst other nations in the world for withholding information to its civilians by its government. There is limited communication with the outside world for North Korea in particular - in which only a small part of the internet is available to them. State surveillance arms have always been a thing, it is merely taking different fonts and shapes as the world begins to change alongside the needs of society. It is noted that controlling and surveilling is carried out in order to continue maintaining the authoritarian regime. Similarly, other countries in Asia have been found to carry out similar notions as a means of political gain. Notably, it is evident that the issue of surveillance in Asia has always been a thing. The introduction of Fintechs in the region has actually amplified surveillance under the guise of watching to help promote policy changes for social welfare. Surveillance is seen as a normal thing, to which it's been claimed as an activity that is inherently political.
Nicknamed the Great Firewall of China, the Chinese Government has been censoring many different websites and pages, alongside the use of regional applications such as WeChat, which has been another tool for government surveillance since its creation. Countries such as China own the majority of companies, in which China is ranked first in the world for having the most State Owned Enterprises. WeChat, mentioned earlier as an app that is known for its heavy state surveillance, is known as being a key digital infrastructure in China - this is where the shift in how much easier surveillance became, began to occur.
Before FinTechs began to completely consume money in Asia, buying things online in urban areas was just entering bank card information to carry out a transaction. Many people in Asia, who are also living in more rural areas, did not tend to belong with a bank or own a card. Yet one item that almost every person needed to continue with their daily life was a phone - which introduced the concept of digital IDs, then followed by being able to pay online. Digital IDs are easy to trace since it uses phone numbers and real name confirmation, to ensure real people are confirmed users. Online services such as these are easy to coordinate by the state, meaning they are key players in ensuring processes are run smoothly. Additionally, their rapid expansion can also help be explained by globalisation; money can easily be sent to people across the region online, where the case is not the same if it was physical cash.
China’s own WeChat has combined the many of the different, now deemed necessary, online functions, including digital payments, in which it is now being referred to as a ‘Super app’ . Netizens are able to use just one application for messaging, e-commerce and many other functions. It is believed that being able to use digital payments on WeChat was what fundamentally transformed the app to not only become a superapp, but also a key digital infrastructure in China. Additionally, other Asian countries are in pursuit of doing something similar - with India, an app called Tata Neu is being developed by the Tata Group.
The importance of Super apps in Asia has become an important reason as to how FinTech has become state surveillance. First, since these apps have a previously established importance as digital infrastructure, being able to combine it with digital finance means that there is almost no need for use of other applications. The several, key and most popular apps are easily traced, and past payments are also searchable and storable. Everything being moved online means it is easy for the state to look for particular transactions, track trends and more. In a technological world, it also means increased risks online, for both consumers and firms. China is a nation that has been known to prioritise cybersecurity over personal data leaks, meaning it is quite well renowned that their nation is one of heavy surveillance. The concept of personal data privacy (to the state) has fundamentally been tossed aside for the importance of ensuring data breaches don't happen overseas.
The use and reliance of digital currency has made it even easier for companies to be able to track user data. Furthermore, with the introduction of AI, many companies claim it has been able to increase efficiency of services, especially concerning digital transactions, online currency exchanges, etc . Yet, that is only on the customer side of operations. In the back end, AI is able to provide real time data and information that is being given by customers at their own discretion. FinTech is able to be discerned completely from surveillance on the internet simply because of the introduction of AI into its services, which improves efficiency on the surveillance side of operations as well. User trends are able to be investigated quickly and even more efficiently with AI.
To conclude, finance has become an important infrastructure in Asia, to which the state plays a heavy role in overseeing/ coordinating efforts surrounding regulation. The internet had always been a place of surveillance, and it had created a somewhat natural shift towards online finances. Many businesses no longer use physical cash, and QR code payments have become the norm. Online banking is easy to set up with digital ID, meaning traditional banks are no longer being used. This heavy reliance on digital payments make it easy for the state to either indirectly regulate through legislation, or directly own enterprises and regulate as a key stakeholder.
Whilst earlier concepts of plain surveillance included security cameras, advancements in technology had brought a new world of watching you. For several years now, the world has begun to enter what many researchers and political scientists are calling the fourth industrial revolution, with Artificial Intelligence leading said revolution. FinTech in Asia has undergone rapid expansion due to the world becoming more integrated through technology. Since the early 2000s, companies such as AliPay were amongst the lucky first to enter the new market of e-commerce, and essentially laid the groundwork for future companies. However, one issue that seemingly continues to reappear only amongst Asian companies is the lack of trust. Many companies have found that trust is still a barrier to reaching target audiences such as the elderly, or people who are in more rural areas. Many customers have a right to be concerned in terms of trust, as this report will continue to explore the who, what, where and why’s surrounding surveillance and Asian Fintechs, as well as providing many different nation case studies to provide a variety of evidence. Before delving deeper into answering the statement, it is important to remember that ever since the conception of the internet and computers in the third industrial revolution, surveillance of citizens has always occurred; this shall be elaborated upon.
The internet has always been a place for state surveillance in Asia. Countries such as North Korea and China are ranked highest amongst other nations in the world for withholding information to its civilians by its government. There is limited communication with the outside world for North Korea in particular - in which only a small part of the internet is available to them. State surveillance arms have always been a thing, it is merely taking different fonts and shapes as the world begins to change alongside the needs of society. It is noted that controlling and surveilling is carried out in order to continue maintaining the authoritarian regime. Similarly, other countries in Asia have been found to carry out similar notions as a means of political gain. Notably, it is evident that the issue of surveillance in Asia has always been a thing. The introduction of Fintechs in the region has actually amplified surveillance under the guise of watching to help promote policy changes for social welfare. Surveillance is seen as a normal thing, to which it's been claimed as an activity that is inherently political.
Nicknamed the Great Firewall of China, the Chinese Government has been censoring many different websites and pages, alongside the use of regional applications such as WeChat, which has been another tool for government surveillance since its creation. Countries such as China own the majority of companies, in which China is ranked first in the world for having the most State Owned Enterprises. WeChat, mentioned earlier as an app that is known for its heavy state surveillance, is known as being a key digital infrastructure in China - this is where the shift in how much easier surveillance became, began to occur.
Before FinTechs began to completely consume money in Asia, buying things online in urban areas was just entering bank card information to carry out a transaction. Many people in Asia, who are also living in more rural areas, did not tend to belong with a bank or own a card. Yet one item that almost every person needed to continue with their daily life was a phone - which introduced the concept of digital IDs, then followed by being able to pay online. Digital IDs are easy to trace since it uses phone numbers and real name confirmation, to ensure real people are confirmed users. Online services such as these are easy to coordinate by the state, meaning they are key players in ensuring processes are run smoothly. Additionally, their rapid expansion can also help be explained by globalisation; money can easily be sent to people across the region online, where the case is not the same if it was physical cash.
China’s own WeChat has combined the many of the different, now deemed necessary, online functions, including digital payments, in which it is now being referred to as a ‘Super app’ . Netizens are able to use just one application for messaging, e-commerce and many other functions. It is believed that being able to use digital payments on WeChat was what fundamentally transformed the app to not only become a superapp, but also a key digital infrastructure in China. Additionally, other Asian countries are in pursuit of doing something similar - with India, an app called Tata Neu is being developed by the Tata Group.
The importance of Super apps in Asia has become an important reason as to how FinTech has become state surveillance. First, since these apps have a previously established importance as digital infrastructure, being able to combine it with digital finance means that there is almost no need for use of other applications. The several, key and most popular apps are easily traced, and past payments are also searchable and storable. Everything being moved online means it is easy for the state to look for particular transactions, track trends and more. In a technological world, it also means increased risks online, for both consumers and firms. China is a nation that has been known to prioritise cybersecurity over personal data leaks, meaning it is quite well renowned that their nation is one of heavy surveillance. The concept of personal data privacy (to the state) has fundamentally been tossed aside for the importance of ensuring data breaches don't happen overseas.
The use and reliance of digital currency has made it even easier for companies to be able to track user data. Furthermore, with the introduction of AI, many companies claim it has been able to increase efficiency of services, especially concerning digital transactions, online currency exchanges, etc . Yet, that is only on the customer side of operations. In the back end, AI is able to provide real time data and information that is being given by customers at their own discretion. FinTech is able to be discerned completely from surveillance on the internet simply because of the introduction of AI into its services, which improves efficiency on the surveillance side of operations as well. User trends are able to be investigated quickly and even more efficiently with AI.
To conclude, finance has become an important infrastructure in Asia, to which the state plays a heavy role in overseeing/ coordinating efforts surrounding regulation. The internet had always been a place of surveillance, and it had created a somewhat natural shift towards online finances. Many businesses no longer use physical cash, and QR code payments have become the norm. Online banking is easy to set up with digital ID, meaning traditional banks are no longer being used. This heavy reliance on digital payments make it easy for the state to either indirectly regulate through legislation, or directly own enterprises and regulate as a key stakeholder.
Whilst earlier concepts of plain surveillance included security cameras, advancements in technology had brought a new world of watching you. For several years now, the world has begun to enter what many researchers and political scientists are calling the fourth industrial revolution, with Artificial Intelligence leading said revolution. FinTech in Asia has undergone rapid expansion due to the world becoming more integrated through technology. Since the early 2000s, companies such as AliPay were amongst the lucky first to enter the new market of e-commerce, and essentially laid the groundwork for future companies. However, one issue that seemingly continues to reappear only amongst Asian companies is the lack of trust. Many companies have found that trust is still a barrier to reaching target audiences such as the elderly, or people who are in more rural areas. Many customers have a right to be concerned in terms of trust, as this report will continue to explore the who, what, where and why’s surrounding surveillance and Asian Fintechs, as well as providing many different nation case studies to provide a variety of evidence. Before delving deeper into answering the statement, it is important to remember that ever since the conception of the internet and computers in the third industrial revolution, surveillance of citizens has always occurred; this shall be elaborated upon.
The internet has always been a place for state surveillance in Asia. Countries such as North Korea and China are ranked highest amongst other nations in the world for withholding information to its civilians by its government. There is limited communication with the outside world for North Korea in particular - in which only a small part of the internet is available to them. State surveillance arms have always been a thing, it is merely taking different fonts and shapes as the world begins to change alongside the needs of society. It is noted that controlling and surveilling is carried out in order to continue maintaining the authoritarian regime. Similarly, other countries in Asia have been found to carry out similar notions as a means of political gain. Notably, it is evident that the issue of surveillance in Asia has always been a thing. The introduction of Fintechs in the region has actually amplified surveillance under the guise of watching to help promote policy changes for social welfare. Surveillance is seen as a normal thing, to which it's been claimed as an activity that is inherently political.
Nicknamed the Great Firewall of China, the Chinese Government has been censoring many different websites and pages, alongside the use of regional applications such as WeChat, which has been another tool for government surveillance since its creation. Countries such as China own the majority of companies, in which China is ranked first in the world for having the most State Owned Enterprises. WeChat, mentioned earlier as an app that is known for its heavy state surveillance, is known as being a key digital infrastructure in China - this is where the shift in how much easier surveillance became, began to occur.
Before FinTechs began to completely consume money in Asia, buying things online in urban areas was just entering bank card information to carry out a transaction. Many people in Asia, who are also living in more rural areas, did not tend to belong with a bank or own a card. Yet one item that almost every person needed to continue with their daily life was a phone - which introduced the concept of digital IDs, then followed by being able to pay online. Digital IDs are easy to trace since it uses phone numbers and real name confirmation, to ensure real people are confirmed users. Online services such as these are easy to coordinate by the state, meaning they are key players in ensuring processes are run smoothly. Additionally, their rapid expansion can also help be explained by globalisation; money can easily be sent to people across the region online, where the case is not the same if it was physical cash.
China’s own WeChat has combined the many of the different, now deemed necessary, online functions, including digital payments, in which it is now being referred to as a ‘Super app’ . Netizens are able to use just one application for messaging, e-commerce and many other functions. It is believed that being able to use digital payments on WeChat was what fundamentally transformed the app to not only become a superapp, but also a key digital infrastructure in China. Additionally, other Asian countries are in pursuit of doing something similar - with India, an app called Tata Neu is being developed by the Tata Group.
The importance of Super apps in Asia has become an important reason as to how FinTech has become state surveillance. First, since these apps have a previously established importance as digital infrastructure, being able to combine it with digital finance means that there is almost no need for use of other applications. The several, key and most popular apps are easily traced, and past payments are also searchable and storable. Everything being moved online means it is easy for the state to look for particular transactions, track trends and more. In a technological world, it also means increased risks online, for both consumers and firms. China is a nation that has been known to prioritise cybersecurity over personal data leaks, meaning it is quite well renowned that their nation is one of heavy surveillance. The concept of personal data privacy (to the state) has fundamentally been tossed aside for the importance of ensuring data breaches don't happen overseas.
The use and reliance of digital currency has made it even easier for companies to be able to track user data. Furthermore, with the introduction of AI, many companies claim it has been able to increase efficiency of services, especially concerning digital transactions, online currency exchanges, etc . Yet, that is only on the customer side of operations. In the back end, AI is able to provide real time data and information that is being given by customers at their own discretion. FinTech is able to be discerned completely from surveillance on the internet simply because of the introduction of AI into its services, which improves efficiency on the surveillance side of operations as well. User trends are able to be investigated quickly and even more efficiently with AI.
To conclude, finance has become an important infrastructure in Asia, to which the state plays a heavy role in overseeing/ coordinating efforts surrounding regulation. The internet had always been a place of surveillance, and it had created a somewhat natural shift towards online finances. Many businesses no longer use physical cash, and QR code payments have become the norm. Online banking is easy to set up with digital ID, meaning traditional banks are no longer being used. This heavy reliance on digital payments make it easy for the state to either indirectly regulate through legislation, or directly own enterprises and regulate as a key stakeholder.
