Digital Finance Drives: Banks Open a New Chapter of Digital Transformation

Digital Finance Drives: Banks Open a New Chapter of Digital TransformationDuring the 2024 China International Fair for Trade in Services (CIFTIS), the 6th China Fintech Forum was held in Beijing Shougang Park, focusing on the theme of "Technology Empowerment - Digital Transformation and Application of the Financial Industry." Numerous banking professionals shared their insights and practical experiences on the direction of digital finance layout

Digital Finance Drives: Banks Open a New Chapter of Digital Transformation

During the 2024 China International Fair for Trade in Services (CIFTIS), the 6th China Fintech Forum was held in Beijing Shougang Park, focusing on the theme of "Technology Empowerment - Digital Transformation and Application of the Financial Industry." Numerous banking professionals shared their insights and practical experiences on the direction of digital finance layout.

Digital Technology Drives Financial Innovation, Banks Embrace Digital Transformation

With the rapid development of digital technologies such as big data, blockchain, and artificial intelligence, the financial industry is undergoing unprecedented changes. Banks are actively using digital finance as a lever to meet the increasingly diversified operating needs of enterprises, continuously enhancing their core competitiveness and core technological capabilities, thereby enhancing the targeting and effectiveness of financial services.

Digital Finance Becomes a New Engine for Financial Development, Empowering High-Quality Financial Service Development

Multiple experts agree that the "driving" role of digital finance is very evident. It is not only one of the five major financial articles but also plays a significant role in promoting other financial areas such as fintech, green finance, inclusive finance, and pension finance.

Meng Qian, Chief Information Officer of Bank of China, pointed out that developing digital finance is a necessary measure for banks to adapt to the development of the digital economy, achieving their own high-quality development, and also a way out for commercial banks in a low-interest rate market environment. Digital finance, based on new-generation digital technologies, treats data as a new type of production factor, and is expected to accelerate the formation of new productivity, becoming a crucial engine for the development of the financial industry.

Banks Actively Explore Digital Finance Applications, Building New Models for Digital Transformation

To vigorously develop digital finance, Bank of China has formulated a digital finance action plan, established a digital finance committee, and set up digital-related teams in business lines at all levels of the organization. At the same time, Bank of China has built several platforms for promoting the application of new technologies, applying them in various business scenarios such as customer information, human resources, and financial management, achieving cost reduction, efficiency improvement, and quality enhancement. In addition, Bank of China uses a unified group data "dictionary" to implement a single set of standards within the group, effectively supporting precision marketing, risk control, operational optimization, and business management.

L Zhongtao, Chief Technology Officer of Industrial and Commercial Bank of China, emphasized that digital finance has advantages such as breaking through time and space limitations in financial services, improving resource allocation efficiency, and reducing financial service costs, which are crucial for building strong financial institutions. In recent years, Industrial and Commercial Bank of China has adhered to digital development, launching IT architecture transformation, comprehensively implementing the construction project of the intelligent banking ecosystem, and entering the "Digital 2.0" phase led by digital technology. At the same time, Industrial and Commercial Bank of China has also established an independently controllable AI large model technology system, comprehensively promoting the innovative application of AI large model technology in major business areas such as remote banking, branch operations, financial markets, and credit management.

Digital Transformation Requires Synergistic Empowerment of Technology, Data, and Scenarios to Activate Traditional Business Models

Gao Feng, Chief Information Officer of the China Banking Association, pointed out that digital transformation requires the synergy of digital technology, data elements, and business scenarios, and none of them can be ignored. The essence of digital transformation is to activate data elements through cutting-edge digital technologies, empowering traditional business models, thereby realizing more efficient and intelligent financial services.

At this forum, Chen Chong, Dean of the Financial Technology Research Institute of Industrial Bank, shared practical examples of how Industrial Bank empowers inclusive finance and green finance in its digital transformation. Industrial Banks innovative establishment of the Biological Asset Digital Supervision Platform has injected new digital momentum into inclusive finance, improving the quality and efficiency of serving rural revitalization. By attaching electronic ear tags to cattle, sheep, and other livestock raised by farmers, the supervision platform utilizes "Internet of Things + blockchain + AI" technology to achieve intelligent inventory of different livestock varieties, raising scenarios. Digitalized means empower bank post-loan management, enabling living biological assets to become collateral, effectively solving the financing difficulties of farmers.

Data Becomes the Core Element of AI Development, Banks Need to Strengthen Data Quality and Security Protection

Wang Yi, Director of the Technology and Product Management Bureau of Agricultural Bank of China, pointed out that traditional artificial intelligence is algorithm-centric. Driven by large models, artificial intelligence is beginning to shift towards data-centric, making high-quality data supply particularly important. In the next step, the banking industry needs to improve from the perspective of adapting to AI applications, further enriching the types of data collected, improving data quality, and establishing a model and data security protection system.

It is reported that Agricultural Bank of China will adhere to innovation-driven development, build a new model of driving operation and management with "data + algorithms," comprehensively promote the construction of intelligent banking, achieve more accurate customer insights, and more efficient operation and management.

Talent Cultivation and Joint Innovation Are Key to Digital Transformation, Financial Institutions Need to Actively Respond to Innovation-Derived Risks

Experts pointed out that financial institutions should cultivate more composite talents who understand both business and technology, possessing comprehensive capabilities such as business capabilities, a global perspective, digital concepts, and technology. Strengthen joint innovation with leading research institutions and enterprises to accelerate digital transformation research and innovative applications. At the same time, financial institutions also need to pay attention to innovation-derived risks and continuously enhance their digital financial risk control capabilities.

In summary, digital finance has become an inevitable trend in the development of the banking industry. Banks are actively exploring new models of digital transformation, comprehensively improving their core competitiveness, and promoting the high-quality development of financial services. In the future, the banking industry will continue to deepen digital transformation, build a safer, more efficient, and more intelligent financial service system, and provide stronger financial impetus for national economic development.