A concept photo of currencies and financial market Illustration: VCG

Chinese banks and tech companies led the world in applications for financial technology patents over the last decade, surpassing the US, a Japanese media outlet reported on Tuesday, highlighting China's fintech patent performance in quantity and quality, as well as the application of new technology including artificial intelligence (AI). 

A Chinese analyst said that the achievements, backed by the country's high-quality development driven by tech innovation, will not only efficiently serve the real economy, but also benefit the inclusive development of the global financial order.

Nikkei Asia examined fintech-related patent filings in 118 countries and regions in the 10 years through 2025, working with Tokyo-based research firm Patent Result. The total tally reached roughly 120,000, nearly triple the number in the preceding decade.

China accounted for 38 percent of the total, followed by the US at 17 percent, South Korea at 9 percent, and Japan at 8 percent. China's filings swelled 10-fold from the previous decade, when it had ranked third behind the US and South Korea, according to the report.

Dong Shaopeng, a senior research fellow at the Chongyang Institute for Financial Studies at the Renmin University of China, told the Global Times on Tuesday that backed by China's economic strength, the country's investment in science and technology research and development has increased remarkably in the past years. 

"The surge in fintech patent filings highlighted in the Japanese media report is testament to the achievements of China's strategy of pursuing high-quality development driven by technological innovation," the expert noted.

China's filings ranked high on quality as well. Scoring in terms of patent value and competitiveness put China at the top, followed by the US and Japan, with e-commerce giant Alibaba Group Holding leading among companies, the report said.

The report noted that the country also stands out for its development of new technologies leveraging AI, taking the Industrial and Commercial Bank of China (ICBC) as an example. 

According to Nikkei, ICBC uses AI to predict lending risk, analyzing customer behavior and income to gauge their creditworthiness and predict their likelihood of default. It also holds a patent for a system to plan efficient ATM restocking based on information such as user location data and the weather, reducing costs.

"It is particularly noteworthy that China's patents are not only large in quantity but also superior in quality. These application-oriented patents are closely aligned with China's real-world scenarios, featuring high conversion rates and strong practicality. They embody China's distinctive innovation path of 'demand-driven and innovation-led' development, far surpassing the model that merely pursues patent quantity," Dong noted.

The expert said that the patent achievements efficiently serve the real economy and enhance the security of the financial system through high-tech empowerment, noting that China's fintech innovation adheres to developing itself while benefiting the world. "Through technological spillover and win-win cooperation, it provides a replicable path for inclusive finance to the world, especially developing countries," he added.

According to the Xinhua News Agency, Cross-border e-CNY (digital Chinese yuan) services have made new progress with 26 financial institutions signing on as direct participants with e-CNY Center International Co in Shanghai in June. 

Under the traditional model, a single cross-border transaction often has to pass through three to five intermediary banks, undergoing processes such as message verification and compliance checks. With the help of Cross-border e-CNY Transfer Services, these institutions can achieve direct connectivity with the payment systems of monetary authorities and various financial institutions at home and abroad, reducing the settlement period from several working days to just a few hours, Xinhua reported.

Dong noted that China's fintech innovations, including blockchain and digital yuan-related technologies, provide technical solutions for building a diversified international payment system, adding that an efficient and high-tech financial system can contribute Chinese solutions to building a fair, equitable, mutually beneficial and win-win global financial order.