Source | People's Digital FINTECH
Editor | Jin Zhao Yutou
| Paid download at Visual China
How does 5G technology integrate with the banking, insurance, and securities industries?
In recent years, the financial industry has paid great attention to the application of 5G technology. Some financial institutions hope to seize the 5G application development window period, actively explore new formats and models, grasp the initiative of 5G financial applications, and respond to potential changes in advance; on the other hand, the new crown Under the influence of the epidemic, the digital transformation of the financial industry has accelerated, financial services are becoming more mobile and online, and the development of inclusive finance and serving the real economy requires financial institutions to actively and rationally use 5G and other new-generation information technologies to continuously improve their digitalization. Develop capabilities to achieve high-quality transformational development.
Recently, the China Academy of Information and Communications Technology released the "5G + Finance" Application Development Research Report (2020). The report explained the latest development background, important value, scenario exploration, landing issues and suggestions of current 5G financial applications. The most important one is based on the core ability of 5G to enhance the perception of the financial industry. This article discusses the role of 5G technology in finance in six aspects: "5G+" movable property financing, supply chain finance, dynamic risk control, insurance pricing, fast transactions, and mobile financial news . Exploring the scenarios of industry integration applications.
5G+ movable property financing
-Scene analysis
Financial institutions provide SMEs in various forms of financing, but they usually rely on real estate mortgages and third-party guarantees, and the scale of financing is limited. Movable property financing refers to the financing mode in which the lender obtains financial support from financial institutions, enterprises or individuals with various movable property as collateral. Movable property refers to the general term for all property and rights except real property, such as vehicles, securities, and accounts receivable Funds, intellectual property rights, etc. The above-mentioned financing methods have risks such as repeated financing, ineffective monitoring of collateral, and fraudulent documents due to the difficulty of preserving and supervising the mortgage subject matter and the uncertain value fluctuations.
Chart: Summary of collateral types
Source: public information
-5G value manifestation
With the support of 5G network, it can optimize the real-time transmission effect of the network, reduce network delay, and improve the clarity and fluency of video and image. Financial institutions can comprehensively use the Internet of Things, big data, blockchain and other financial technology-related technologies to build core capabilities of "controlling goods" , promote the combination of external ecological resources and technical capabilities, and realize a one-stop experience of digital monitoring of movable assets, effectively helping pledges in real time Supervision, so that a variety of inventory products based on the real trade behavior of the upstream and downstream of the supply chain become the subject of pledge, and provide financing support for small and medium-sized enterprises.
Picture: Chattel pledge financing supervision solution
Source: China Mobile
An operator conducts chattel pledge financing supervision, connects data systems such as warehousing service providers, financial institutions, and external goods quotations, realizes full online processing and authorization of business processing, global visualization of pledged property status, pledged property value, changes in corporate credit, and corporate Full visualization of key person risks, risk early warning and active warning services for asset-related changes . It can be applied to the pledge financing supervision scenarios of bulk commodities, large indoor commodities, outdoor storage yards, indoor high value-added small commodities, etc., and can also be deployed in outdoor mobile scenarios. my country's movable property financing market is developing rapidly, and financing varieties are becoming more abundant. At the stage of intelligent connection of all things, more items have financing attributes, and the scope of movable property financing is gradually expanding from accounts receivable to machinery and equipment, warehouse receipts, and intellectual property rights.
5G+ Supply Chain Finance
-Scene analysis
Supply chain finance in the traditional sense, that is, the financial products and services provided by the capital supplier to link the core enterprise with its upstream and downstream enterprises, aiming to transform the uncontrollable risk of a single enterprise to the controllable risk of the supply chain enterprise as a whole . However, traditional supply chain finance has difficulties in confirming the rights of the subjects in the chain, complex credit risks, difficult supervision, insufficient real-time information and data, and risks of tampering, etc., and similar agents operating fast-moving consumer goods, due to the large number of product categories , The value of a single product is low, the in and out operations are more frequent, and the warehouse is widely distributed. Generally, it is difficult to obtain financing support from financial institutions.
-5G value manifestation
The integration and application of 5G, Internet of Things, blockchain and other new technologies will continue to broaden the service boundaries of supply chain finance, enabling real-time monitoring of capital flow, information flow, logistics, and business flow, helping the integration of the four flows and promoting supply chain finance Measurable and analytical . The physical data of the whole process is collected through the Internet of Things technology. The blockchain provides the underlying logic of the supply chain financial business based on the characteristics of non-tampering and traceable data on the chain. The 5G network realizes the intelligent perception and comprehensive Process tracking management, standardized supervision and operation.
Figure: Supply chain finance business model and problems
Source: public information
Supply chain finance involves many warehousing companies, which can rent nearby base station infrastructure to solve bandwidth problems. At the same time, the high-density coverage of 5G base stations is of great help in locating assets in supply chain financial services, especially in indoor scenarios. Based on the use of the above technical means, if agents can successfully unify the flow of information, capital, goods, or business, and prove that all transactions in the supply chain actually exist, they can also obtain financing . For example, an e-commerce company launches a financing platform for supply chain financial products and makes full use of a variety of new technologies for full online operations-online verification, online pledge, online lending, online redemption, and online repayment, greatly simplifying the corporate financing process , Relying on the national warehousing and distribution capabilities of the organization’s logistics, the entire process of commodity warehousing is recorded, and specific positions are monitored by IoT equipment in real time, and early warnings can be issued in time for unauthorized actions.
Picture: Supply chain finance solution of an e-commerce company
Source: public information
On September 18, 2020, the People's Bank of China and other eight departments jointly issued the "Opinions on Regulating the Development of Supply Chain Finance to Support the Stable Cycle and Optimizing Upgrading of Supply Chain Industry Chains" , emphasizing that supply chain finance should comprehensively use financial technology to deepen information Synergies and technological empowerment promote the sceneization and ecologicalization of supply chain finance, and improve the level of online and digitalization. In the future, more financial institutions will use the new generation of information technology to promote supply chain finance to further break up the obstacles in the circulation of business entities, and improve the circulation and circulation efficiency of the supply chain industry chain.
5G+ dynamic risk control
-Scene analysis
The traditional risk control model has two shortcomings: one is that historical data is falsified , and the cost of data verification is relatively high. The second is credit lag. Models based on static data such as book information and historical credit cannot reflect the credit status of existing entities in real time. At present, the traditional financial risk control model with human as the core has been difficult to cope with the existing complex risk environment, and the financial risk model urgently needs to be transformed to real-time, dynamic, and intelligent.
-5G value manifestation
Financial risk control in the 5G era is quite different from that in the 4G era. The development of risk control in the 4G era is more based on static data such as financial books. The risk control model has greater limitations. A large number of high-frequency and multi-dimensional data generated by massive heterogeneous connected terminals such as smartphones, smart cars, and wearable devices under 5G networks have become a reliable basis for judging and controlling risks . At the same time, higher requirements are put forward for data security and network security. . Combined with the risk control model of new IT software and hardware upgrades, edge computing, network slicing, etc., the 5G era has more diverse financial risk prevention and control methods, more multi-dimensional methods, and more real-time risk identification and processing, which will effectively improve the security of financial institution operations and management Sex.
An operator uses a 5G network to connect a large number of terminals, collects and returns data on people, equipment, systems, and behaviors in real time, and combines big data analysis to improve credit risk control capabilities; realize real-time high-definition video monitoring and return analysis through 5G networks. The whole process of business processing is video surveillance to prevent improper and wrong behavior; the automated processing of financial transaction processes is realized through the 5G network, which improves the user experience while avoiding human discretion.
Figure: 5G+ IoT risk control application framework
Source: China Mobile public information
Based on a unified IoT perception access platform, big data, and financial blockchain services, the internal capabilities and external resources of financial institutions are integrated at the business plan level from the perspective of business needs, which can form a complete set of core capabilities and controllable IoT financial perception platform. Through the Internet of Things smart collection equipment for wind control, real-time data collection and automatic acquisition of enterprise data are realized, and the production and operation of the enterprise can be grasped at any time. Through the comprehensive application of data comparison analysis model, business data analysis model, trend prediction analysis model, and risk warning model, we can estimate key indicators such as operating hours, equipment utilization, output, etc., and statistically analyze abnormal production and operation conditions of the company to achieve data comparison Analysis, verification and risk prediction and early warning.
Risk control is the core of the financial field. In the 5G era, data, algorithms, computing power and other dimensions will bring new challenges to traditional financial risk control, but multi-dimensional monitoring data will continue to optimize modern risk control mechanisms and operating methods. The next generation of risk control systems will be more intelligent.
5G+ insurance pricing
-Scene analysis
The premium is the fee paid to the insurer when the insured purchases the insurance product, according to the insurance premium rate set at the time of insuring. In the past, insurance premiums were mainly composed of insurance amount, insurance premium rate and insurance period, and the pricing model was classified and classified, and less consideration was given to personal behavior or own attribute change information after insurance, information on the operating status of items, etc., and pricing flexibility and applicability were insufficient .
-5G value manifestation
The insurance industry is a typical data-intensive industry. With the advent of 5G, the development of the big data era will be further deepened. Comprehensive and abundant information on people, finances, and materials will provide an important reference for the individual pricing of insurance products . At this stage, more typical examples of insurance product innovation are to take into account the multi-dimensional information of the insured object and match personalized service plans, such as car insurance products derived from the Internet of Vehicles, and new medical health insurance designed based on personal physical index information.
UBI (Usage Based Insurance) is based on the user's driving usage to determine the insurance premiums, that is, the use of on-board equipment to collect driving data, and comprehensive analysis of driving time, location, mileage, and driving behavior to determine the required auto insurance premiums. A domestic Internet insurance company launched UBI auto insurance, comprehensively using a variety of intelligent technologies to create scene-based services to meet the individual needs of car owners for UBI auto insurance in terms of service models; in terms of pricing, it uses big data technology to accurately trace user portraits , And through collecting multi-dimensional pricing information such as car owners’ driving habits, vehicle information, residential area, family members, etc. , to encourage car owners to establish good driving habits to obtain a more affordable price.
"5G+Medical Health" refers to real-time tracking of various functions of the human body through health monitoring methods such as wearable smart devices, and shifts the focus of medical attention from treatment to regulation and prevention. Based on real-time monitoring and historical data, mobile health and other means can provide users with a comprehensive health plan, including nutrition, physical activity and emotional support. It also encourages users to maintain a healthier lifestyle for a long time and reminds users to conduct regular health checks, which ultimately reduces the occurrence of serious health problems, thereby reducing the risk of health insurance and the amount of claims.
The development of insurance technology in China has entered a new stage in which technology deeply empowers the insurance industry. The opportunities and challenges of multidimensional data in the 5G era will coexist, which will bring new products and business models to the insurance industry. In the future, insurance will change with changes in the underlying risks of insurance. It is expected that pre-prevention and in-event risk management will be involved in the full life cycle of user risk protection, promote iterative optimization of insurance products and services, and continue to provide users with more Quality life care.
5G+ speed transaction
-Scene analysis
Information exchange in the securities market is intensive. As market integration and competition continue to intensify, low latency has become one of the main development trends in the securities field. Delay is the time it takes for the device to send instructions to the remote server and get a response. In many scenarios such as algorithmic trading and high-frequency arbitrage, the higher the transmission delay, the lower the order success rate. Therefore, many users will invest a lot of resources to optimize transaction delays, such as setting up transaction lines or deploying code to the brokerage computer room, or even deploying to the exchange hosting computer room, hoping to shorten the physical distance to the extreme.
-5G value manifestation
Applying 5G technology, it is expected that the unit data transmission delay will be reduced to less than 10 milliseconds. Under the 5G uRLLC standard, 5G's lower air interface delay can be used, and with the independent transaction master station, independent offer machine and independent transaction unit deployed for VIP customers, it can provide VIP customers with a lower cost and low latency transaction channel , To meet the low-latency transaction needs of mass customers.
Picture: VIP extremely fast trading channel for securities institutions
Source: GF Securities
5G+ mobile financial news
-Scene analysis
The traditional short message financial service of financial institutions refers to the relevant financial services provided to customers by means of mobile phone short message (MMS) notification interaction based on short message technology and through the financial institution's short message platform. Nowadays, the financial industry generally faces problems such as difficulty in SMS marketing and promotion, high cost, low reading rate and conversion rate, long paths for services to reach users, and difficulty in forming a closed loop effectively.
-5G value manifestation
5G messaging is a brand-new human-computer interaction mode. Users can complete a one-stop business experience of product service search, discovery, interaction, and payment in the message window. 5G messaging makes services lighter and more convenient. First, it promotes the realization of a lighter front-end and forms a one-stop service link, which greatly reduces the loss of customers from scene jumps. The second is to form more interaction methods and portals with customers. , So that information is no longer simply used as a means of notifying customers, but to provide information with more applications and service scenarios, enabling message-bearing intelligent customer service, third-party payment and other service capabilities; the third is to upgrade on the basis of SMS, Present richer media information to customers and increase their interest in reading. Based on the above functions, it is expected to realize the closed loop of the whole process of marketing, purchasing and service.
The application of 5G news in the financial field is reflected in the following aspects:
In terms of customer service , based on P2A3 messages, merchants are intelligently connected to users through the message service platform. Relying on the function menu, they establish a one-click direct access to business processing. Customer service can quickly and effectively help customers complete various business processing. At the same time, the P2A message Embedded AI chat bots on the platform can respond to users at any time and provide messaging services such as sending, receiving, parsing, and processing;
In terms of marketing , through A2P4 messages, merchants use mobile phone numbers as the push basis, and cooperate with mobile authentication capabilities to implement precise marketing. For example, banks can improve the effect of online credit card transactions through 5G message interaction and marketing activities, forming a closed loop of 5G message credit card online business processing scenarios ；
In terms of payment , 5G news can broaden the channels for business payment. Taking the purchase of high-speed rail tickets as an example, by searching for 12306 information in the 5G message center, ordering tickets and submitting merchandise orders according to demand, completing the payment and order logistics inquiries within the message, so as to achieve the purpose of attracting offline customers and expanding payment channels .
A large bank deployed and applied a 5G messaging solution to improve the click-through rate and conversion rate of new products such as insurance, wealth management and loans during the promotion period, as well as the convenience of services and the activity of the official website/APP. The main actions are as follows: Operator side Enterprise certification improves user trust; actively pushes promotional event message cards, and promotes new activities through vivid marketing cards; design related entry buttons for common operation scenarios such as balance query, transfer, credit card bill query, repayment, and financial query , Provide users with convenient services; provide enterprise APP download connections, guide users to download, and meet more advanced applications.
Figure: 5G message realization page
Source: Monternet Technology
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