Ping An Bank Achieves Cost Reduction and Efficiency Improvement Through AI-Driven Digital Transformation
Beijing, August 30, 2024
Ping An Bank has successfully leveraged digital transformation to drive significant cost reduction and efficiency improvement in the first half of 2024, as revealed in its recent financial report. Despite a 13.0% decline in operating revenue to 771.32 billion yuan, the bank’s net profit saw a 1.9% increase to 258.79 billion yuan, showcasing the power of digital strategies in managing economic challenges.
Digital Transformation Continues to Gain Momentum
The bank has been steadfast in its commitment to digital transformation, focusing on the Three Digitization initiative: digital operations, digital management, and digital services. This strategy has been pivotal in enhancing customer experience, optimizing operational efficiency, and managing asset quality effectively.
Retail and Corporate Business Transformation
In the retail segment, Ping An Bank has harnessed big data and AI technologies to improve customer service and optimize the performance of its mobile banking app, the Ping An Pocket Bank App. The bank also upgraded its remote banking service model, resulting in an 80% increase in the number of effective customers served per employee compared to 2023.
For corporate business, the bank has integrated financial services with customer benefits through its Digital Pocket platform, supporting the digital transformation of small and medium-sized enterprises. By the end of June, the platform had 21.98 million registered business users, a 16.2% increase from the previous year.
Expansion of Cross-Border Services
In response to national policies promoting cross-border facilitation, Ping An Bank has expanded the scope of its Instant Receive and Pay service, achieving an automation rate of 85% in cross-border transactions.
AI-Driven Intelligent Operations
Technological innovation lies at the heart of Ping An Bank’s digital transformation strategy. In the first half of 2024, the bank continued to invest in cloud-native systems engineering and big data processing capabilities, enhancing system stability and resource utilization efficiency.
AI-Enhanced Marketing and Risk Management
Ping An Bank’s AI-driven external call technology was applied in approximately 430 scenarios, with a cumulative call volume reaching 300 million. Additionally, the bank utilized AI in quality control for marketing, customer service, and debt collection, with over 500 AI inspection models configured and over 450 million calls made in the first half of the year.
Risk Management Progress
The bank’s non-performing loan ratio stood at 1.07% in the first half of 2024, slightly higher than the previous year. However, its provision coverage ratio was 264.26%, indicating a robust risk mitigation capacity. The bank also enhanced its monitoring of asset quality and compliance risk management through the upgrade of its intelligent compliance platform and smart audit system.
Optimization of Back-Office Digital Management
Ping An Bank has improved the efficiency of core management scenarios such as finance and human resources through the strengthening of data infrastructure and the application of digital tools.
Financial and Human Resource Management
The bank upgraded its Financial Intelligence platform, achieving full electronic and paperless expense reimbursement processes. The automation rate for standard expenses reached 86%, significantly improving financial operation efficiency and contributing to green office initiatives by reducing carbon emissions by over 340 tons in the first half of the year.
The bank’s intelligent tax platform also underwent continuous optimization, expanding the scope of self-service electronic invoicing. Currently, approximately 90% of invoicing business supports electronic invoicing. In human resource management, over 200 HR metrics and multiple analytical dashboards were launched, further realizing refined management.
Enhanced Operational Efficiency and Security
Ping An Bank improved customer service efficiency by upgrading its intelligent cloud service platform and virtual digital assistant technology. By the end of June, the bank’s operational audit automation rate reached 49%, an increase of approximately four percentage points from the previous year. The centralized operation center’s digital intelligence rate increased to 92.3%.
In terms of security, the bank continued to strengthen measures against account risks, particularly in anti-fraud and anti-money laundering efforts. The bank’s intelligent due diligence rate for anti-money laundering reached 65.9%. In cybersecurity, the bank maintained high availability for critical business systems and made progress in network security defense, detecting and blocking over 60,000 customer account hijacking attempts.
Conclusion
While Ping An Bank has achieved notable results in digital transformation and technological innovation, it still faces challenges from declining operating revenue and asset restructuring. As the bank continues to advance its digital transformation, it must remain vigilant in enhancing service quality, optimizing management processes, and addressing challenges in risk management and technology application.
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