Recently, there have been several pieces of news in the field of financial technology that have attracted considerable attention. On the one hand, multiple financial companies have experienced a decline in revenue and net profit. According to Qifu Technology's midterm report, the company's revenue in the first half of the year was 7.5 billion yuan, a year-on-year decrease of 11.76%, and its net profit was 2.023 billion yuan, a year-on-year decrease of 5.86%. The mid-term performance announcement of China Ping An's Lujin Holdings also shows that in the first half of the year, due to the continuous decrease in overall transaction volume and loan balance, total revenue was 19.348 billion yuan, a year-on-year decrease of 40.7%, and net profit was 1.736 billion yuan, a year-on-year decrease of 78.9%. On the other hand, financial institutions are still increasing their investment in fintech business. On August 30th, Industrial Bank of China announced the construction of a financial technology industrial park in Fuzhou Binhai New City. The total construction investment budget of this project is approximately 3.258 billion yuan, which will be invested over 7 years. The total planned construction area is approximately 210000 square meters, and the planned uses include a research and development center, data center, customer service center, operation center, training center, and supporting buildings. Apart from Industrial Bank, many listed banks have mentioned their future development plans for fintech business in their six-month performance releases. Why are banks increasing their investment while industry profits are declining? The two may seem contradictory, but in reality, there is a certain degree of rationality. Firstly, the year-on-year decline in industry profits has not changed the positive trend of the financial technology industry. With the development of technology and the growth of financial data, the application of financial technologies such as big data, blockchain, and artificial intelligence in the financial field is becoming increasingly widespread. According to industry research institutions, due to the rich data and numerous application scenarios in the financial industry, there will be a large number of innovative applications of financial technology in the future. Secondly, in the context of accelerating the transformation of the financial industry, a large number of financial institutions, especially small and medium-sized financial institutions, have not yet completed their digital transformation and require financial technology to support the transformation and development. Financial institutions are increasing their investment in financial technology. On the one hand, they hope to use the power of technology to improve operational efficiency and improve the quality and efficiency of serving the real economy; On the other hand, it is to improve the security of financial services and prevent business risks. For example, financial fraud and money laundering are serious issues currently facing the financial industry, and artificial intelligence technology can help financial institutions detect, prevent, and combat fraudulent behavior in a timely manner by analyzing big data and monitoring abnormal patterns. Practical cases have shown that fintech can provide more effective anti money laundering measures and strengthen the security of the financial system. Of note is the impact of the new policy on the industry. On June 30th of this year, the transition period for commercial bank internet loan business ended, which is also the last day of the transition period of the "Credit Reporting Business Management Measures". The official implementation of "direct connection disconnection" in credit reporting has changed the model of financial technology platforms providing data services to institutions. Under compliance requirements, some data products are not allowed to be transmitted to banks. At the same time, banks must use relevant data through credit reporting agencies, and the service model of financial technology companies must be adjusted as soon as possible. Timely increasing investment and adjusting business models as soon as possible are the strategies that are conducive to long-term development in the future. It is foreseeable that for most fintech companies, the current performance adjustment will be temporary and adapt to the new service model