Greg Gibb, Lufax: In-depth Analysis The Impact of Big Data and AI in the Future of Finance
2017年11月14日 - 11:00PM
JCN Newswire
"It only takes a few minutes or even seconds to make decision on
loan, which in turn will increase the loaning opportunity for each
borrower." - Greg pointed out that big data and AI have great
impact on the financial sector.
On 4 Nov 2017, Greg Gibb, Co-Chairman and CEO of Lufax Holdings
("Lufax"), gave a keynote speech at the 2nd Annual Conference on
"The Chinese Era of Digital Finance" at the Institute of Digital
Finance, Peking University, where he specifically analyzed the
financial impact of big data and Artificial Intelligence (AI). Greg
believed that big data and AI financial management can increase
market transparency, and as such the financial institutions could
render investors with more pertinent services, and assist their
clients to diversify investment risk, improve operation efficiency
for financial institutions and sustain the real economic
development.
Greg pointed out that big data and AI have great impact on the
financial sector, For example, they keep institutions to understand
the credit standing of individual borrower from multiple
perspectives so that a speedy judgement could be made . "It only
takes a few minutes or even seconds to make decision on loan, which
in turn will increase the loaning opportunity for each borrower."
AI and big data will lead the market to a higher level of
transparency and standardization. Therefore, financial institutions
could have a faster understanding on corporations, including market
changes within the respective industry, corporate position and cash
flow status, etc.
Big Data and AI can also help the platform to better understand the
specific needs of the investors in order that a better choice of
products can be arranged. Greg said, "We found that the accuracy of
the traditional (questionnaire) method of assessing the customers'
need is relatively low. In the past few years, we found that the
data from the clients' end, including their answers to a few
psychological issues, we can grasp even more understanding of their
ability to withstand risk. Therefore, in the future, not only that
AI and big data can enable us to attain a thorough understanding of
our clients and companies from the asset end, but also enable us to
know if the investors are suitable participants of the market and
which investment products are most appropriate from the investment
end."
"The development on big data and AI will lead to the emerging of
many new product portfolios for clients to invest in diversified
sectors; or if adopted dynamically, clients' fund can be allocated
to diversified areas, with relevant market trends taken into
consideration in order to reduce overall investment risk and to
increase overall investment return." The growing popularity of the
U.S. Exchange Traded Funds (ETFs) in recent years has served as an
evident. ETF was originally a passive investment tool, while with
the development of big data, it was then transformed into a more
active and less costly way of investment. ETF had been gradually
replacing the largest fund market.
The future development of big data and AI will also have a major
impact on matching mechanism. "If there are clear rating standards
on the asset end and lots of automatic investment tools with
detailed understanding of individual investor, the market can
actually achieve automatic matching." The automatic matching
mechanism can greatly reduce labor costs as well as financial costs
and bring about inclusion in financial services.
"In the past five years, we think the internet has only exerted its
influence on channel extension, but big data will affect the whole
financial market in all aspects in the next five years. Firstly, AI
and big data will enhance market transparency and standardization
and support development in real economy; secondly, it can help
investors to attain more diversified investment strategies, and
clients can attain higher returns. This is a relatively big help to
the society as a whole, yet a great challenge for the financial
sector in itself."
Greg also put forward that there could be induced-risk coming along
with big data and AI. Firstly, short-term accuracy does not
guarantee the long-term one; secondly, as large number of
transactions will be assigned to computerized automation mechanism,
this can bring different problems. "We cannot conclude that large
data and AI must necessarily be good. We must be careful in
controlling risk." Greg added.
Source: Shanghai Lujiazui International Financial Asset Exchange
Co.,Ltd.
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