Beijing, China – September 14, 2024
As the world hurtles towards an increasingly digital economy, the financial sector is at the forefront of transformation. The 2024 China International Fair for Trade in Services (服贸会), held in Beijing, provided a platform for banking professionals to converge and deliberate on the future of digital finance. The sixth China Financial Technology Forum, a key event within the fair, took place on September 12 and 13 at the Shougang Park, focusing on the theme Technology Empowerment – Financial Industry Digital Transformation and Application.
Digital Transformation as a Catalyst for Change
According to Xingwei Xing, Secretary of the China Banking Association, the financial industry is undergoing an unprecedented transformation driven by digital technologies such as big data, blockchain, and artificial intelligence. Banks are leveraging digital finance to meet diverse business needs, enhance core competitiveness, and improve the effectiveness of financial services.
Digital Finance as a Key Driver
Several experts highlighted the significant role of digital finance in not just being one of the five major pillars of finance but also acting as a catalyst for other sectors like technology finance, green finance, inclusive finance, and elderly finance. Developing digital finance is an inevitable measure for banks to adapt to the digital economy and achieve high-quality development, said Mengxi Meng, Chief Information Officer of Bank of China. Digital finance, built on the foundation of the latest digital technologies and data as a new production element, will become an important engine for accelerating the formation of new-quality productivity.
Bank of China’s Digital Strategy
Bank of China has outlined a comprehensive digital finance action plan, established a digital finance committee, and set up digital teams across all business lines. The bank has also created several new technology application platforms, integrating them into various business scenarios such as customer information, human resources, and financial management to achieve cost reduction, efficiency improvement, and quality enhancement.
Industrial and Commercial Bank of China’s Digital Transformation
Lü Zhongtao, Chief Technology Officer of the Industrial and Commercial Bank of China, emphasized the advantages of digital finance in breaking through the spatial and temporal limitations of financial services, improving resource allocation efficiency, and reducing the cost of financial services. The bank has embarked on a digital journey through IT architecture transformation and the implementation of a smart banking ecosystem, entering the Digital 2.0 phase driven by digital technology. Additionally, the bank has developed an independently controllable AI large model technology system, which is being applied across major business areas.
Digital Empowerment in普惠金融 and Green Finance
Chen Chong, Dean of the Financial Technology Research Institute of Industrial Bank, showcased the bank’s digital transformation efforts in empowering inclusive and green finance. The bank’s innovative Biological Asset Digital Supervision Platform has infused digital vitality into inclusive finance, enhancing the quality of rural revitalization services. By using digital tools to empower post-loan management, the platform enables live biological assets to serve as collateral, solving financing difficulties for farmers.
The Importance of Data
The significance of data in digital platforms has become increasingly prominent. Traditional AI is algorithm-centric, but with the development of large models, AI is shifting towards being data-centric, said Wang Yi, Director of the Science and Technology and Product Management Bureau of the Agricultural Bank of China. The next step for the banking industry is to enhance data collection types, improve data quality, and establish a security protection system for models and data.
Cultivating Talent and Addressing Risks
Experts suggested that financial institutions should cultivate more复合型人才 who are proficient in both business and technology, with comprehensive abilities including business acumen, a global perspective, digital concepts, and technical skills. They also recommended that banks collaborate with leading research institutions and enterprises to accelerate digital transformation research and innovation. Additionally, there is a need to focus on the risks associated with innovation and continuously enhance the ability to prevent and control digital finance risks.
The discussions at the 2024 Service Trade Fair signal a pivotal shift in the financial industry’s approach to digital transformation, emphasizing the importance of leveraging technology to drive growth and enhance service quality. As banks continue to innovate and adapt to the digital age, the future of finance looks increasingly promising.
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