In the second half of the digital economy, how should financial companies conduct digital operations?

Introduction: Digital operation is a key link to accelerate industry adjustment, realize resource optimization, and boost service upgrading in the process of digital transformation of financial enterprises. With the development of digital technology, the Internet, big data, cloud computing, artificial intelligence, blockchain, etc. have fully empowered the financial industry, from banking, insurance, trust, securities, asset management, credit cards, loans, wealth management to payment, etc. Attempting the digital transformation of the financial industry and accelerating the reshaping of business models and financial product innovation.

Author: Zhu Weijun

Source: Huazhang Computer (hzbook_jsj)

So, in the second half of the digital economy, how should financial companies conduct digital operations?

Next, I will combine my years of experience in the field of financial products to introduce in detail the 3 pain points, 3 major strategies, and 5 keys of digital operations.

3 Pain Points of Digital Transformation

Digital transformation is an inevitable choice for the financial industry. Digitalization empowers financial services and accelerates the rapid development of financial companies that do consumer loans or digital financing. Using digital technology to realize digital operation and combining enterprise services with digital operation is the key to the success of digital transformation of financial enterprises.

However, in the process of digital upgrading and transformation, financial enterprises are faced with some problems in digital operation and data management. Many problems are difficult to solve because they cannot be quantified, which has become a pain point in the digital transformation of enterprises, as shown in Figure 1.

Pain point 1: data and information asymmetry, unable to integrate resources well.

In the process of obtaining user information and data, operators of corporate financing experience varying degrees of information isolation and data isolation, resulting in the inability to integrate resources. The isolation of information leads to information asymmetry, and it is impossible to control the access before lending, which brings the risk of application fraud. Data isolation leads to data fragmentation, which prevents effective credit granting and brings the risk of credit fraud.

The key to solving the problem of lending risk in corporate financing is to solve the problem of information asymmetry. We can use digital technology to integrate resources, realize data sharing and information exchange, and then ensure the validity of data and the accuracy of information.

Pain point 2: There are many difficulties in financing for enterprises, and the risk of lending remains high.

Financing has always been a difficult problem for enterprises. For financial companies with small scale, few assets, weak strength, and low risk resistance ability, they face the risk of declining customer debt repayment ability, inflated recovery cost of loan funds, and difficulties in the turnover of corporate liquidity. Coupled with the unsatisfied financing needs, the development of financial enterprises is full of difficulties.

The essence of corporate financing is business risk. To solve the financing needs of financial enterprises, the first problem is that enterprises pay attention to their own financing risks. Therefore, it can actively connect with commercial banks and strengthen the connection with upstream and downstream enterprises. Optimize the loan process, speed up the approval efficiency, extend the repayment period, reduce the loan interest rate, provide efficient financial services, increase the liquidity of its own assets, and thus overcome financing difficulties.

Pain point 3: Insufficient financial innovation capabilities make it difficult to advance online operations.

Small and micro enterprises have innovated the financial model, which is more about the improvement and optimization of the automation and informatization of the credit system, and has not fundamentally solved the problems of financial regulatory requirements such as data authenticity and risk control. In the process of online operation, it will be difficult to advance online operation due to uncertain factors of corporate financing and improper grasp of risks.

For the operational risks brought about by insufficient financial innovation, financial companies can formulate a set of risk management and security early warning mechanisms based on label modeling, user portraits, precise touch and intelligent business development, so as to effectively reduce the risk of default and ensure credit business reasonable growth.

Figure 1 Three Pain Points of Digital Transformation

3 strategies for digital management

In fact, most financial companies have a relatively high degree of Internetization, but there are still some offline businesses that are difficult to transfer online. For example, the external customer service of traditional commercial banks is mainly operated offline, and the traditional business cannot be realized online. The main reason is the lack of digital operation capabilities.

Financial companies have accelerated the process of going online, and the key is to transform to digital. We need to enhance our digital capabilities, improve customer access, intelligent decision-making, agile design, and digitization of business operations, so as to quickly reduce costs and increase efficiency in online operations.

Finance is just a tool, business operation is the purpose. In the face of the problems and challenges brought by digital transformation to the operation and development of financial enterprises, the key is to take effective actions to achieve self-rescue after having a clear understanding of oneself. There are three main methods, as shown in Figure 2.

Figure 2 Three strategies for digital management

Method 1: Drain consumption scene lending, and promote business development scene.

It is said that the scene comes first and finance comes later. During the epidemic period, financial services such as wage payment, e-commerce transactions, medical insurance, online education, car beauty, and overseas travel were suppressed on a large scale, resulting in financial companies not lending and platform customers not borrowing money.

Therefore, financial companies try to reconstruct the consumption scenarios of various industries, and establish a scenario finance that expands scenarios horizontally and deepens business vertically. Integrate finance into the scene and strengthen the application of digital scenes, such as establishing bank-enterprise collaboration tools and establishing a closed-loop management system for customers, so as to realize the seamless connection between finance and consumption.

Method 2: Connect with business data financing to accelerate online business transactions.

Digital management is not purely a list of numbers and data display, but to turn data into assets and make assets generate value. As the importance of data becomes more and more prominent, we can use asset mortgages, business data and accounts receivable for data financing, provide data loans and running water loans for small and medium-sized enterprises, and create an online financial transaction platform through digital empowerment , to realize the sinking of financial business.

For example, the Bank of China launched the "Disease Control Loan" and "Enterprise Assistance Loan" in response to the epidemic to meet the financing needs of different companies and provide digital financial services for companies whose financing is about to expire. In addition, in the form of customer diversion or channel loan assistance, technologies such as big data, cloud computing, artificial intelligence, and blockchain are used to further promote the online financial transactions, thereby realizing in-depth mining of corporate business data.

Strategy 3: Build a financial business ecosystem and accelerate the intelligentization of business management.

Due to the diversification of customer needs and the digitalization of business operations, the future financial ecology will present more possibilities for changes, but the core is that the financial business can meet the financing needs of small and micro enterprises. For example, Xiaomi Finance relies on the "industry + technology + finance" approach to create a business ecological closed loop. For example, Ping An Bank builds a financial technology closed loop with the help of the five ecosystems of healthcare, financial services, housing services, car services, and city services.

Based on businesses such as corporate loans, consumer loans, or digital financing, through technology-enabled online finance and finance-driven digital operations, the multi-directional empowerment of business data is realized, thereby building an intelligent financial ecosystem that integrates technology and finance.

5 keys to a lean digital transformation

With the diversification of customer needs and the digitization of business operations, future financial ecological changes will present more possibilities. Focusing on the construction of digital finance, we strive to reshape finance, reshape platforms, reshape data, and reshape services. The key is to create "four connections and one leveling" of the financial platform.

(1) Open up the financial account system

Relying on the CRM certification system, ERP management system, and big data financial platform, one account and one account are established, which not only meet the requirements of multiple entities and multiple accounts of financial enterprises, but also realize the unification of accounts and establish a unified customized view.

The account center encapsulates an authentication interface, which is provided to the financial platform to call, supports "one identity, universal", external joint login logo, and internal unified login entrance. In the process of opening up the account system, establish a layered user system and account system, so as to tap the potential needs of customers, realize cross-marketing, and increase customer stickiness.

(2) Get through the financial data link

Through data collection, data cleaning, data modeling, and data analysis, establish a data mart, map the financial platform bazaar, and associate the digital platform bazaar to realize data interoperability between the financial platform and the digital platform.

Integrate data and unify data, use data assets to build business strategies, and realize various applications in the data center, such as digital points, digital certificates, and digital safe deposit boxes. Do service management for financial customers, and do content output for financial scenarios.

(3) Get through the financial product matrix

Accelerate the digital innovation of financial products, build a financial product factory, realize product parameter configuration, and make it configurable from product attributes, process nodes, business fields, operation functions to business data to ensure product function reuse.

Relying on the business platform to aggregate financial products and realize product alliances. Unify products, do not export customized products, avoid reinventing the wheel, and realize cost reduction and efficiency increase for financial enterprises.

(4) Open up the rights and interests of financial users

According to the transaction behavior of different financial products, differentiated rights and interests are matched, and rights and interests are used as hook products to open up user usage scenarios. Such as personal matching discounts, ladder wealth, exclusive consultants, interest-free withdrawals, etc., corporate matching corporate training, priority approval, business inquiries, financial and tax returns, etc.

(5) Unified financial service platform

Unify the accounting center, marketing center, data center, and product center, open up the online and offline transaction modes of the financial industry, integrate the upstream and downstream industry chain resources of financial companies, and help companies build a "1 account + N platform services" management platform.

"Four links and one leveling" can promote the innovation of financial enterprises, realize the online, automation and intelligentization of more financial businesses, and promote the digital transformation of financial enterprises. We will strengthen the sharing of financial account systems around "Account Link"; promote information platform data sharing around "Data Link"; promote alliance product resource sharing around "Product Link";

From conception to implementation of the digital operation of financial enterprises, the key is lean digital transformation, creating a digital, informatized, intelligent, and online transformation roadmap. Capture customer business opportunities through data, and combine financial services with digital technology, so as to better acquire new customers, revitalize old customers, and drive operations in smart management.

Summarize

This article mainly expounds the digital operation of financial enterprises, and I believe it will be helpful and enlightening for financial product managers to build their own knowledge system of digital capabilities. In the process of digital operation, financial enterprises use standardized, collaborative, componentized, platformized, and micro-serviced financial cloud platforms to accelerate the layout of lightweight "SaaS services". Regarding the financial SaaS business model, this article will not introduce it in detail here. If you are interested in this part, I recommend you to read the new work "Financial Product Methodology" by Zhu Xuemin in detail .

About the author: Zhu Xuemin (Youshan Zhuge), senior financial product expert, CEO of Huachuang Microclass, chairman of Huachuang Kemeng, founder of PMLink product manager community, has deep accumulation in technology, management and product fields. He has worked in the field of financial products for many years, and has served as financial product director, payment product manager, and credit product manager. From 0 to 1, he is responsible for the planning and whole-process design of various financial products (App, H5, applets, Web front-end, PC back-end) involving wealth management, loans, and payments, forming a set of financial product methodology.

This article is excerpted from "Financial Product Methodology" published by Machinery Industry Press. Please keep the source of the article for reprinting.

Recommended reason: This is not only a guide for financial product managers to improve their abilities and a desk reference manual for daily work, but also a strategic guide and practical guide for the digital transformation of financial companies. This book is a summary of years of experience by senior financial product experts, and it profoundly explains the product concept behind finance. It is a masterpiece in the fields of financial loans, financial planning, and financial payments.

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In the second half of the digital economy, how should financial companies conduct digital operations?

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