What’s next for FinTech?

The application of artificial intelligence in human society is still in its infancy, but the financial industry may be an exception. The financial industry is one of the industries with the highest level of informatization. It is suitable for technological transformation and process remodeling. In addition, the financial industry is highly competitive but profitable. Financial institutions have the power and strength to explore new models of technology-driven finance.

From the current stage, the application of AI in the financial industry has achieved significant results. Such as intelligent risk control, intelligent customer service, intelligent collection, intelligent investment consulting, etc., are not only used to reduce costs and improve quality within financial institutions, but also can be exported as mature solutions in the industry. Many institutions have established separate technology-enabling companies. To seize the market vent.

Dialectical View of Human-Computer Interaction

When it comes to artificial intelligence, we have to mention human-computer interaction. In the financial field, the requirements for human-computer interaction are even higher.

The manufacturing industry produces standardized products, emphasizing stability and controllability. In the financial industry, we are facing a dynamic environment—dynamically changing users, dynamically changing supervision, and dynamically changing products, etc., and more emphasis is placed on the evolution and iteration of artificial intelligence. System deployment is only the first step, and subsequent iteration and optimization are the key.

The human-computer interaction in the financial industry is mainly the interaction between humans and systems / models. The bottom layer of the system model is data and business scenarios. Therefore, human-computer interaction is essentially a collaborative problem of talents, data, and business scenarios. The evolution of the model requires real-time feedback from business scenarios, which is optimized based on data, and talents play the role of coordinator and controller from beginning to end.

Human-computer interaction can also be viewed from the perspective of a single enterprise level and an industry level. In terms of individual companies, human-computer interaction must play a more important role in reducing costs and improving technology to help financial services develop better. From an industry perspective, there are some systemic issues that need to be considered, namely the application of artificial intelligence to the industry. Coming potential impact.

For example, convergence, the convergence of the model will increase market resonance, make the cycle shorter, more intense, and increase volatility. The typical case comes from the field of quantitative investment. Institutions deploy similar strategies, buy or sell simultaneously, and counterparties are scarce. As a result, prices have skyrocketed.

Another example is the issue of unexplainability. The artificial intelligence model looks like a black box from the outside, input and output, but the calculation process is too complicated and unclear, so it is only a statistical relationship rather than a causal relationship. The statistical relationship is unstable and variable, which brings hidden risks to the system model. Once a change in an external variable causes statistical correlations to cease to exist, the model faces a problem of sudden failure.

For these industrial problems, the intervention of macro-prudential supervision is required to guide the flow of resource allocation in the industry to avoid some potential risks.

The integration of technology and finance gives birth to a new ecology

With the full application of financial technology, many financial services have been fully automated. Take consumer finance as an example, intelligent customer acquisition and intelligent customer service after customer acquisition; intelligent risk control and real-time loan collection after the risk control and intelligent collection after overdue, etc. In addition, technology continues to promote the evolution of the product itself, reaching a certain critical point, forming a new service model, the most typical of which is intelligent investment consulting.

The reason why technology can profoundly change the financial industry is highly sought after by the industry, and its roots are related to its two major roles:

The first is the catalyst, which activates the value of the original resources of the financial ecology. The most typical is to activate the vitality of data, especially in the two steps of intelligent customer acquisition and intelligent risk control.

In the application of intelligent customer acquisition, financial institutions use the power of technology and data to achieve the combination of reducing customer acquisition costs and providing user matching. On the one hand, it is used to empower artificial customers to reduce costs and improve efficiency. If it is used for telemarketing, first use the intelligent voice assistant to make a circle of calls and find the users with transaction potential and give it to the telemarketing staff for subsequent development. To improve the relevance of offline extension. On the other hand, it is used to solve the problem of matching in the process of product marketing and platform diversion, reducing unnecessary interruptions to users, thousands of people, and accurate push.

In intelligent risk control applications, user behavior data has become the raw material of big data risk control, which has greatly widened the boundaries of risk control, and then widened the boundaries of users, transforming consumer finance from niche products focused on specific user groups. Public financial products. Taking the data of the Central Bank Credit Reporting Center as an example, at the end of 2015, the central bank had a credit record of 380 million people, and now it has exceeded 500 million people. More than 100 million people have changed from non-lenders to lenders. Taking into account Internet credit that is not included in the central bank’s credit, a total of 200 million people have changed from non-lenders to lenders.

Second, fintech itself has become a factor of production. With the integration of finance and technology, technology has gradually become a product, becoming the fourth largest production factor independent of capital, users, and data. When science and technology became independent, the gap between different financial institutions at the science and technology level encouraged science and technology cooperation and empowerment, laying the foundation for an open platform model.

At this point, the competition in the financial industry has gradually transitioned from a single institution dispute to an ecological platform dispute, and the financial industry has entered a new normal.

The impact of 5G on the financial industry

Recently, various industries are thinking about 5G. All in all, 5G is characterized by faster speeds, more connections, lower latency, and higher reliability. It will bring us into the real era of the Internet of Everything. By then, even the lifestyle will change, and the financial industry will not have the same reason. .

In my opinion, the impact of 5G on the financial industry is reflected in at least two aspects:

The first is the activation of material vitality, which will greatly enrich the boundaries of the financial industry. In the era of the mobile Internet or 4G, the online data of the scene has activated people’s data and information, bringing retail finance to a new level. In the 5G era, the Internet of Everything and the Industrial Internet will activate the vitality of things and hope to bring the entire financial ecosystem to a new level.

When material is used as a financial scenario, activation of the material means activation of the financial scenario, which will broaden the boundaries of the financial scene; when material is used as collateral, activation of the material means activation of risk control, which will broaden the financial climate. CONTROL BOUNDARY.

In the industry’s efforts to promote inclusive finance and small and micro finance, the advent of the 5G era is particularly timely. Lending credit is essentially the credit of people or the credit of things. The popularity of consumer finance stems from the expansion of human credit boundaries by big data risk control; once the credit of goods is activated, not only retail finance can reach a new level, but the company’s financial ecosystem is also the first to bear the brunt of it. Small and micro finance with severe financial shortages.

The second is to help business processes get rid of time and space constraints, eliminate online and offline differences, and make finance ubiquitous. 5G high-speed transmission, low latency and other features, combined with the popularity of VA / AR in the 5G era, will eliminate the boundaries between long-range and short-range. At that time, “pro-nuclear pro-visit” may not be face-to-face, and many processes in the financial industry are expected to reshape, such as remote account opening or will not become an obstacle. What is the core function of offline channels when offline channels lose their “pro-nuclear pro-visit”? The financial industry needs to rethink and gradually build up.

In addition, 5G has given a lot of application space to many technologies that are not fully effective in the 4G environment. For example, the threshold for using technologies such as micro-expression-based real-time risk control and face recognition will be further reduced. Its application in the financial industry It will further deepen.

Next vent

Financial technology is in the ascendant. The next outlet of financial technology is not limited to the technology itself, but also reflects the deepening of existing technology in application scenarios.

The first is the transfer from the C-side to the B-side within the financial industry. With the activation of 5G’s vitality, the obstacles to the application of FinTech in the B-end scene are cleared, and the vent of B-end Fintech will come.

The second is from the financial industry to outside the financial industry. Fintech is not only applicable to the financial industry, but also has a wide application space in the industrial field. For example, the construction of smart cities has many fintech giants participating in it. As fintech empowers traditional industries, technology has become a new bridge between finance and industry. Connections generate interactions, and interactions bring about growth and change and new possibilities, which will certainly bring unlimited space for innovation and development in the financial industry.