the development status of financial technology
how to understand financial technology?
the definition of the financial stability board (FSB): big data, blockchain, cloud computing, artificial intelligence, etc. Emerging business models, new technology applications, new products and services that are driven by emerging frontier technologies and have a significant impact on the financial market and the supply of financial services.
Boston Consulting's "Development Trend of Global Financial Technology" 217 defines that the integration of technology and finance provides innovative solutions for the financial industry: innovative financial products, innovative service models, serving more people, improving service efficiency and reducing transaction costs.
how to classify financial technology?
There is no consistent standard for the classification of financial technology. According to the classification of regulatory policy documents, the classification of financial technology in China includes: mobile payment, peer-to-peer lending, digital currency, internet insurance, equity crowdfunding and smart investment.
1. Development of global financial technology
Financial technology first rose overseas from the United States and Britain for the following three reasons:
(1) After the financial crisis in 28, traditional financial institutions encountered a crisis of confidence.
(2) Internet aborigines of "millennials" have become the main consumers.
(3) The development of Internet, big data, cloud computing and other technologies and the popularity of smart phones.
since the beginning of 29, the cumulative number of international media reports on "financial technology" has exploded; From 213 to 218, global financial technology investment was in the form of wide-caliber investment, and the investment scale increased by 5.9 times.
It can be seen that financial technology has become a hot development trend in the world.
2. Development of financial technology in China
China has now become the second largest market for financial technology. From 213 to 218, the investment scale of financial technology in China increased by 159 times, and the growth rate was much higher than the global level. Especially in the fields of mobile payment and peer-to-peer lending, China has become a leader in global financial technology.
there are three main driving factors for the rapid development of financial technology in China:
(1) financial demand. According to the data analysis of the proportion of population in the credit information system of the People's Bank of China and the proportion of credit card holders, it can be seen that the coverage of the existing financial system in China still has a lot of room for improvement, and there are still a large number of people whose financial needs cannot be met.
(2) technical development. In the past ten years, cmnet's technology and digital technology have developed vigorously.
(3) regulatory policies. The government has an open and encouraging policy towards financial technology, and on the basis of supporting the research and innovation of the underlying technology of financial technology, it has also strengthened the supervision over financial risks
3. Different modes of early development of financial technology between China and the United States < P > Part II < P > The destructive innovation power of financial technology for traditional banking < P > At present, some emerging financial service providers based on financial technology have cut into their services and business fields from the C-end and the B-end, and started to deepen their financial industry.
1. Take the flower buds owned by Ant Financial as an example to analyze the three key capabilities of Internet consumer finance
In 218, Ant Financial raised $14 billion, with a market valuation as high as $15 billion, with about 87 million active users worldwide and 552 million active users in China. The scale of assets under management reached 2.2 trillion yuan, and the assets of Yu 'ebao reached 15 million yuan.
The business of "Flower Shop", one of Ant Financial's products, is quite different from that of traditional bank credit cards, and it mainly has the following three key capabilities.
first of all, the source of customers. "Flower Bai" introduces traffic through Alipay and Taobao, which greatly reduces the cost of obtaining customers and improves the efficiency of attracting customers.
secondly, the user experience. "Flower Garden" enhances users' experience of products by linking multiple scenes in Alipay, such as Taobao shopping, e-commerce platform consumption and offline payment.
finally, it is about risk control. "Flower Garden" has established a risk control model based on all kinds of big data, which is specific to the "sesame credit" established by Ant Financial.
driven by these three key capabilities, "Huabai" uses technology to enrich application scenarios, improve data accumulation and application, and achieve coverage and adhesion to long-tail customers through traffic import and data analysis.
2. take Chengdu "xinwang bank" as an example to analyze the service mode of emerging financial technology companies
xinwang bank claims to be a "financial technology company with a banking license", and 7% of its employees are IT personnel, with wireless outlets, all in the form of online services. The company only provides a small consumer loan product, which is online 24 hours a day, 7 days a week, and 9% of borrowers have no credit records. It is also a risk control model based on big data. After more than three years' operation in this mode, the performance of Xinwang Bank has improved steadily, and the ratio of non-performing loans is only .48%, which is 1/4 of that of listed city commercial banks. Operating costs are also very low, and each loan is smaller than that of 2 yuan.
3. A new financial service model taking consumer finance as an example
Based on the analysis of the above two cases, it can be seen that emerging financial service providers not only provide new products, but also innovate a brand-new financial service model.
Financial technology companies can form accurate customer portraits based on the underlying technologies such as artificial intelligence, big data risk control and identity recognition. The financial services provided on this basis can better combine the consumption scenes, ensure a higher user experience, and even meet the individual needs of consumers.
therefore, it can be concluded that there are the following differences between financial technology companies and traditional financial institutions.
4. Threats to the traditional financial industry
The services provided by financial technology have lower cost, faster transaction speed and better user experience; Financial technology can bring new users, new products and new service models.
McKinsey's 217 analysis report on the strategic practice and enlightenment of global digital banking counted the customer orientation and products of 1,7 banking financial technology companies. The survey data showed that these financial technology companies were involved in various fields of customer classification and product business classification, and basically all banking businesses were covered.
the successful experience of these financial technology banks ahead of traditional banks is undoubtedly impacting the development of traditional institutions and urging the further innovation of traditional financial industries.
Part III
How do traditional banks transform and change
Facing the rise of financial technology companies, the main response of traditional banks is digital transformation. Many digital banks around the world have adjusted their strategic goals to promote the digitalization of traditional businesses.
1. Digital transformation of traditional banks in China
The digital transformation of China's banking industry is related to China's banking system.
In the process of digital transformation of China's banking industry:
As pioneers, joint-stock banks, such as China Merchants Bank, Ping An Bank and Industrial Bank;
Then followed by state-owned banks and a small number of joint-stock banks, such as China Construction Bank, China Industrial and Commercial Bank, China Bank and Minsheng Bank;
The remaining joint-stock banks and city commercial banks, such as Bank of Ningbo Bank and Changshu Bank, followed up last.
2. Specific measures for digital transformation of banks
(1) Establishing financial technology subsidiaries. Provide financial information cloud services and implement financial technology solutions.
(2) Cooperation with technology companies. Traditional financial institutions, including banks, insurance companies and investment banks, signed strategic cooperation agreements with technology companies.
3. Take China Merchants Bank as an example to analyze the digital transformation of traditional financial institutions
China Merchants Bank is at the forefront of the digital transformation of China's banking industry, and has attached importance to scientific and technological development since its inception.
(1) strategic transformation objectives. In 217, China Merchants Bank put forward its own strategic transformation goal, that is, to build a financial technology bank. This goal is implemented from the following three points:
? 1) investment in science and technology. In 218, China Merchants Bank's investment in science and technology accounted for 2.78% of its operating income; In 219, investment in science and technology accounted for 3.72% of operating income, which was second to none in the entire banking industry. China Merchants Bank even listed "the ratio of technology income to operating income is higher than 3.5%" in the company's articles of association in its 218 annual report.
2) organizational structure. In the past few years, China Merchants Bank reorganized the retail finance business department, aiming at building a flexible innovation team. In the whole architecture, the "traditional+agile" development mode is especially emphasized in IT opening, so that IT departments can make more effective use of data capabilities to support front-end departments to achieve rapid iteration, and then improve the user experience of consumers.
3) organizational culture. China Merchants Bank focuses on establishing an open, flat and inclusive Internet innovation culture.
(2) The retail business is developing vigorously. China Merchants Bank is known as the "king of retail". In the past few years, it has been committed to building two apps, namely "China Merchants Bank" and "Pocket Life". According to the data of China Merchants Bank's annual report in 219, the monthly active users (MAU) of these two apps reached 12 million, achieving 92% customer traffic and 8% personal financial product sales. Through these two apps, China Merchants Bank has realized user experience as the center, linked scenes and accelerated product iteration.
4. The digital transformation of banking industry and the challenges faced by traditional financial institutions
The challenge of digital transformation of banking industry is not only the change of a certain business, product and channel, but also the change of the whole thought, which is an overall transformation.
we should change from the original product thinking (business division, channel division, vertical organization, internal IT system, product-oriented assessment indicators and risk culture) to the user thinking (scenario building, channel coordination, agile organization, data-centric, user-oriented assessment indicators and innovative culture).
with the rapid development of financial technology, we are now in a VUCA era of variability, uncertainty, complexity and fuzziness, so the traditional financial industry should make corresponding strategic planning in view of this situation, so the following points should be determined: (1) how to build an agile organization; (2) How to create an innovative culture; (3) the direction and path of transformation; (4) Risk and management in innovation.
5. New risks faced by the financial system
(1) Pseudo-technology and finance risk.
(2) Risk of effectiveness of risk control model.
(3) Privacy invasion and data abuse risk.
(4) Uncertainty risk.
6. Challenges faced by financial supervision
(1) Balance innovation and regulation.
supervision emphasizes risk management and standardization, and it is necessary to prevent systemic financial risks and encourage innovation. Therefore, we should realize the transition from institutional supervision to functional supervision and behavioral supervision. From regional supervision to cross-regional and cross-border supervision; The transition from post-supervision to pre-penetrating supervision.
(2) consumer education and protection.
it is necessary to speed up the legislation related to financial technology, protect the privacy and ownership of data, and realize the use, transparency and openness of big data. China can learn from overseas experience, such as the EU's General Data Protection Regulation (GDPR), strengthen data protection legislation and raise consumers' awareness of data rights protection. In 219, the National Internet Information Office also issued the Measures for the Security Management of Data (Draft for Comment).
part iv
the impact of the epidemic on the digital transformation of the banking industry
1. opportunities: accelerating the pace of digital transformation
(1) the government issued relevant policies. On March 4th, 22, The Politburo Standing Committee (PSC) proposed to speed up the construction of new infrastructure such as 5G network and data center.
On February 15th, China Banking and Insurance Regulatory Commission, China issued the Circular (22) No.15 on Further Improving Financial Services for Epidemic Prevention and Control, requiring all banking and insurance institutions to actively promote online business, strengthen the management and guarantee of electronic channels such as online banking, mobile banking and small programs, optimize and enrich' non-contact service' channels, and provide safe and convenient' home' financial services. On the premise of effectively preventing and controlling risks,
(2) major banks provide online business. For example, China Industrial and Commercial Bank's large and comprehensive online service; China Agricultural Bank's access to online medical care, education and other scenes.
(3) Digitalization of industrial finance. Switching from consumer Internet to industrial Internet has become a broad prospect for the industry. Industrial finance has developed from the corporate business of traditional banks to the supply chain finance centered on core enterprises and extended to upstream and downstream enterprises, and then to industrial digital finance based on the digitalization of operating current assets and operating fixed assets of enterprises, using technologies such as Internet of Things, blockchain, cloud platform and big data to provide enterprises with comprehensive financial solutions.
2. Threat: the differentiation within the banking industry is intensified
(1) the impact on the overall performance of the financial industry
1) the risk of global economic recession;
2) asset quality pressure increases;
3) the profit growth rate is down;
4) intra-industry differentiation.
(2) The threat to the digital transformation of small and medium-sized banks is greater
1) The pressure of declining performance is greater;
2) insufficient investment in financial technology;
3) There is a shortage of financial technology manpower.
Part V
Conclusion
Finally, Professor Yi quoted a sentence from President Tian Huining: "Facing the crisis, actively embracing change, making quick trial and error, learning quickly and evolving quickly is the best methodology to deal with the crisis." The same principle should be applied to banks, enterprises, organizations and individuals.
—— Record of Professor Yi Zhihong's Lecture