Analysys: Recently, some state-owned banks and top joint-stock banks have successively disclosed their financial reports for 2022. Under the guidance of deepening financial supply-side structural reform and high-quality growth requirements, financial technology is still the focus of investment in enabling business growth. Analysys Analysis, based on partially disclosed financial reports of banks, conducts some analysis and forecasts on the technical fields that banks focus on and the direction of business empowerment.
Most banks continue to increase investment in fintech and rationally control the direction of fintech investment
In terms of state-owned banks, the three state-owned banks that have released their 2022 annual reports show that ICBC has invested the most, but Bank of Communications has the fastest growth rate. Bank of Communications invested 11.631 billion yuan in financial technology, an increase of 32.9% over the previous year. In terms of joint-stock banks, many joint-stock banks have raised the development of financial technology to the strategic level, and focused on deployment in terms of capital investment and talent system. On the whole, in 2022, many joint-stock banks will continue to increase their investment in financial technology, and technology investment will account for about 4% of operating income.
Specifically, China Merchants Bank has the highest investment in technology funds among joint-stock banks that have released annual reports. In 2022, information technology investment will be 14.168 billion yuan, a year-on-year increase of 6.6%, which is 4.51% of the bank's operating income. China CITIC Bank invested 8.749 billion yuan in information technology, an increase of 16.08% from the end of the previous year, accounting for 4.14% of operating income. The bank focused on cloud infrastructure, digitalization of front, middle and back office business, and big data research and development.
Many banks continue to increase their investment in financial technology, which shows that banks still attach great importance to the development of financial technology and its business empowerment, and the direction of bank financial technology investment has been adjusted in 2022, and the deployment direction has become more refined.
Business leads the direction of bank financial technology investment, while technology empowers digital upgrade of business
Many banks have strengthened the deployment of financial technology through top-level design, promoted business upgrades, and even reshaped their business models. For example, Industrial and Commercial Bank of China implements the country's strategic plan for the development of a technologically powerful country and digital economy, and accelerates the construction of "Digital ICBC"; The "two departments and two centers" financial technology operation system composed of the center.
From the perspective of banks that have released their 2022 annual reports, banks mainly use digital technology to empower four major business areas, namely, digitization of corporate business, platformization of wealth management, digital intelligence of customer management, and agile and refined risk control.
(1) Digitization of corporate business to empower the real economy
In order to better realize the empowering role of banks in the real economy, digital upgrading is the only way for commercial banks to develop their corporate business, and banks will also improve their service capabilities for corporate customers as a key link in the advancement of financial technology.
Ping An Bank solves the problem of difficult and expensive financing for small, medium and micro enterprises by building the "Nebula Internet of Things Platform" and the "Nebula Open Alliance". Based on the "Ningyun Internet of Things Platform" and the advantages of massive data, Ping An has continuously innovated and iterated its supply chain financial service capabilities with the help of online, modeling, automation and other technological means.
In terms of corporate business, ICBC relies on the "Industry and Finance Cloud" platform to serve the digital transformation of production, supply and marketing of traditional enterprises, and help small and medium-sized enterprises on the chain to solve financing problems. In terms of innovation and upgrading of the corporate business marketing management system, ICBC has built a "thousands of people and thousands of faces" smart marketing system to carry out digital marketing for various corporate customer groups, enriching digital services such as GBC fund undertaking and corporate high-quality intelligent marketing.
(2) Platformization of wealth management and open ecological construction
The platform-based development of wealth management in the banking industry is a manifestation of the penetration of artificial intelligence technology into the entire business chain. It is not only reflected in the application of financial technology in the whole process of wealth management, but also in the intelligent penetration of different wealth management scenarios and businesses. The way the process is made is fundamentally changed. Therefore, wealth management is also a key business for banks to use financial technology to empower them.
Specifically, China Merchants Bank launched the "TREE Asset Allocation Service System" to build an asset allocation service process around the customer wealth management service journey. The Smart Wealth Engine provides investment research data for the investment research work of the whole bank. It not only provides services such as support, algorithm analysis tool support, and research results sharing, but also improves service efficiency for customers through digital tools.
Everbright Bank leverages Everbright Group’s synergistic empowerment to deepen scenario finance, optimize full-process services, enhance the empowerment effect of technological innovation on wealth business, promote channel management, customer management, product marketing and process management around wealth management, and Accelerate the transformation of net worth, and strengthen the ability of professional product selection and combination allocation.
Analysys analysis believes that the greatest value of platformization to wealth management lies in the change of business model, which helps the main income of the wealth management field of the financial industry to gradually change from the model of brokerage or agency commission to the service fee model based on customer assets, so as to achieve Diversified development of business models.
(3) Digital and intelligent customer management, in-depth operation of customer experience
In the post-pandemic era, the experience cycle of customer experience is significantly longer. A single channel can no longer meet customers' increasingly personalized and in-depth service needs. It has become a consensus in the banking industry to break through the current situation of channel fragmentation through global intelligence and conduct in-depth operations throughout the customer life cycle.
In terms of business digitization, ICBC uses technologies such as speech recognition, voiceprint recognition, and speech synthesis to build a complete system of speech recognition and feedback capabilities, which are widely used in various business scenarios such as smart customer service and smart marketing.
Minsheng Bank has expanded smart applications such as "smart remote teller" and "smart agent assistant" through remote banking smart upgrade services, and the "one-key access" function provides convenient experience for elderly customers. In addition, Minsheng deepened the application of new technologies such as big data, RPA, and OCR in the field of operations, and continued to embed intelligent technologies into operational business scenarios and processes, replacing standard operations with technology applications.
China Merchants Bank continues to build a digital operation model, relying on a smart operation engine to focus on solving problems such as processes and operations, and make full use of digital capabilities to improve the automation and intelligence of operations. In terms of operation and management, China Merchants Bank uses data to empower employees with various business analysis tasks, improving employees' ability and experience in using data, and further lowering the threshold for data application.
Analysys analysis believes that the digital intelligence of bank customer management needs to incorporate global collaboration into customer experience management for overall planning. Based on the perspective of the whole journey, online and offline channels should be highly coordinated but clearly positioned to form an organic and unified global experience management. system.
(4) Agile and refined risk control, overall planning of risk management
With the development of financial technology and the increase of risks faced by banks, intelligent risk control is widely used in the banking industry. Various commercial banks have successively launched the upgrading and transformation of risk control systems. By introducing technologies such as big data and AI in the financial field, the upgraded Establish a credit management system to meet the requirements of risk control management under the new situation. In 2022, intelligent risk control will be widely used in the banking industry.
In terms of risk management, China Merchants Bank built an intelligent risk control platform "Libra" to improve transaction risk management and control capabilities. Judge the risk level of the user, and timely check the risks of external fraud and counterfeit transactions in the transaction process by adopting different identity verification methods.
China CITIC Bank focuses on strengthening the overall digital risk control of the whole bank and continuously improving the research and development capabilities of risk management technology. By deepening the multi-level application of big data and artificial intelligence technology, CITIC continues to improve the risk control capabilities of online businesses such as personal credit, auto finance, inclusive finance, transaction banking, and international business, and promotes big data risk warning.
Analysys Analysis believes that the data collection, analysis and application capabilities of commercial banks, and AI capabilities directly determine the risk management capabilities of banks, and the risk management capabilities of banks determine the business development and innovation capabilities of commercial banks.
The direction of investment in bank financial technology is concentrated on cloud transformation, data capability upgrade and deepening the application of artificial intelligence
In 2022, commercial banks will continue to promote comprehensive cloud-based transformation. Among them, "CCB Cloud" will effectively support internal and external empowerment with safe, compliant, and credible cloud service capabilities, and improve the quality and efficiency of research and development, forming an agile and coordinated group financial technology joint force. And China Merchants Bank announced that it has completed the three-year cloud project, and initially built a new financial technology infrastructure of "one cloud + two middle platforms", comprehensively promoting the digital reshaping of customers, channels, businesses, products, and management, creating a "digital Merchants Bank".
In terms of data capacity upgrading, commercial banks are focusing on capacity building from data governance, data analysis to data application. For example, Ping An Bank will improve its value-driven data capabilities, not only by setting up a new data asset management and R&D center in 2022, so as to coordinate the construction of data capabilities across the bank. Especially in terms of data governance, upgrade data management capabilities, unify the caliber, norms and standards of data assets across the bank, and improve the quality of basic data. The construction of infrastructure such as Minsheng Bank's data lake warehouse has been greatly accelerated, the data integration system has been further optimized, and the quality of data resource integration and supply has been significantly improved.
Many banks are deeply embracing artificial intelligence, paying attention to the penetration and synergy of AI in multiple scenarios such as digital marketing and intelligent services. Improve the service capabilities of thousands of people; China Merchants Bank uses artificial intelligence technology to create a more proactive service model, and conducts flexible channel connection through accurate analysis of customer behavior and demands, effectively improving its global service capabilities. China Construction Bank has carried out useful explorations of the application of artificial intelligence in the financial market business, using AI traders to improve the efficiency of inquiry and quotation, risk control and information processing capabilities, and help traders follow up transaction progress and adjust trading strategies in a timely manner.
The integrated development of "business, data, and technology" will become the direction of continuous advancement of banking financial technology
As digital technology plays an increasingly significant role in supporting the development of banking business, it is particularly critical to actively promote the deep integration of business and technology, and to mine the application value of data in business. Therefore, Analysys Analysis believes that banks will continue to deepen the integration of business, technology and data, and establish an end-to-end business demand coordination mechanism to achieve high-quality and sustainable business development.
In 2023, the effect of synchronous resonance between finance and economic and social development will be prominently reflected. Under the overall economic expectation, the integration rate of the digital economy and the real economy will accelerate, the value of data and technological dividends will be released, and financial resources will be injected into the real economy. The field will show a greater role. At the same time, the industry standard for the maturity of financial digital transformation is expected to be released this year, which means that it will be more conducive to the formation of a corresponding transformation quantitative evaluation mechanism and provide effective guidance for the construction of banking industry transformation strategies.
(Article source: Bank of China Insurance News)
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