Chinese banking sector should grasp the opportunities brought by fintech to address the challenges, KPMG's experts said.

There are several urgent issues China's banking industry needs to deal with, according to Wang Lipeng, director and partner of banking industry and fintech of KPMG China.

"The intensified competition and decreased profit led by interest rate liberalization, the differentiation of technology-driven product caused by homogenization of inefficient competition, the new generation of financial upgrade transformation brought by internet technology, the substitution of efficient technology required by the economy-driven rising cost of manpower and the need of financial services to promote intrinsic value are all included."

The time period of the transformation offered by information technology is constantly shortening, while the impact on the banking industry is deepening. Direct-selling bank is exactly the product of fintech, according to KPMG's another newly released report.

Wang added: "In the future, the channels of direct-selling banks may be gradually transformed into the electronic docking of data and cyberspace. However, controlling the seven risks is still one of the core objectives of the banks."

KPMG will continue to support China's technological innovation enterprises on multiple levels – including capacity building, market innovation, financing services and operation – according to KPMG's global innovation strategy.

The company attaches great importance to the new normal in the field of scientific and technological innovation, and uses its own advantages to help enterprises with their fintech transformation, upgrading and innovation.

KPMG's intelligent innovation space was opened in Nanjing this week, helping its clients to achieve innovation and digital transformation. In the future, the firm will continue to invest in cutting-edge technology and personnel training.