Emmanuel Daniel, chairman of The Asian Banker, a financial services industry intelligence provider in emerging markets, warned Chinese banks they could kill the innovation of fintech startups by investing in them, as the banks themselves were huge IT companies that would suck in and absorb promising startups.

Fintechs or financial technology companies are behind the so-called international fintech wave that is poised to disrupt the traditional banking business.

Fintech involves new technologies like machine learning, predictive behavioral analytics and data-driven marketing, as well as improved data analytics that help institutional clients further refine investment decisions.