The rise of technology, particularly in the realms of artificial intelligence, big data, and cloud computing, is rapidly transforming the financial services industryAs these advancements are increasingly integrated within financial institutions, the outcomes are promising: lower operational costs, improved service efficiency, and a more inclusive range of financial products and servicesThe pressing question centers on how these institutions can harness cutting-edge technologies to elevate the quality and effectiveness of their services and, in turn, empower industry growthIn pursuit of answers, we sought insights from leading figures within financial organizations as well as industry experts.

One of the most striking shifts to emerge from the integration of technology into finance is the evolving ecosystem itselfAccording to Shang Fulin, the chairman of the China Wealth Management 50 Forum, “Fintech is elevating the efficiency, precision, and inclusiveness of financial services, fundamentally altering the landscape of the finance sector.” Innovations such as big data are allowing institutions to conduct more accurate assessments of client credit risks, thereby reducing informational asymmetries that historically plagued financial transactions

Furthermore, artificial intelligence holds significant potential, ranging from risk evaluation to optimizing trading strategies.

Yang Tao, deputy director of the National Financial and Development Laboratory at the Chinese Academy of Social Sciences, noted that the rapid evolution of technology is transforming finance as an industry, impacting its core elements, fundamental functions, operational models, and risk management frameworksHe emphasized that the wider application of advanced technologies in financial services innovation is essential, particularly in ensuring compliance and security, as it serves as a crucial mechanism for delivering high-quality services to the real economyThis is especially true for generative AI models, which are driving positive changes in the automation and intelligence levels within financial services, as well as enhancing efficiency in decision-making, management, and risk control.

As institutions navigate the complexities of technological advancement, the role of innovation in enhancing customer service remains paramount

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For instance, Qian Bin, vice president of Bank of Communications, remarked on the significant opportunities presented by a new technological revolution and industrial transformationHe accentuated the bank's commitment to improving service quality through technological innovation, echoing the need to focus on the intrinsic value of data and the adoption of advanced AI modelsCreating a seamless integration of technology and finance is key to maximizing the benefits of such innovations.

The primary objective of these transformations remains the betterment of inclusive financeIn November, a concerted effort was made to leverage data and digital technologies to hasten the digitalization of financial institutions and improve service accessibility and competitivenessChen Siqing, the deputy director of the Foreign Affairs Committee of the National Committee of the Chinese People's Political Consultative Conference, pointed out that finance is inherently a technology-intensive and data-centric field

Digital transformation represents more than just a straightforward enhancement; it is about adapting financial services to align with the distinct demands of emerging industries and new financial models birthed by technological innovation.

Challenges do persist, particularly within micro- and small-business lending, where traditional issues surrounding risk, cost, and scale remain stubbornAccording to Zhou Xuqing, president of Qifu Data Technology, these issues necessitate the reconstruction of cost structures through digital and smart technologiesHis company has been integrating traditional AI with large financial models across various lending processesFor instance, the use of extensive models can help determine benchmark values across different sectors, while advanced credit models can allow for a more nuanced tiered rating of clients, thus gaining greater insights into potential risks.

Through the advancement of fintech, financial institutions are becoming adept at enhancing service quality

Dong Ximiao, chief researcher at the Zhongguancun Internet Finance Institute, suggested embracing generative AI, particularly large models, to facilitate deeper digital transformationThis necessitates continuous innovation in product offerings and improvements to user experience, allowing institutions to carve out a unique niche in an increasingly competitive market.

Moreover, the tech-driven evolution of the financial sector is enabling deeper engagement with rural and county-level financial marketsLocal financial institutions are adapting to these advancements by creatively offering online lending products aimed at broadening accessibility to financial servicesThe Zhejiang Rural Commercial Bank, for instance, has introduced online services encompassing a wide array of financial needs from wealth management to everyday banking services.

A notable example of innovative financing in action was when Beijing Rural Commercial Bank extended a loan of 10.2 million yuan to Beijing Shounong Food Group’s subsidiary, signaling the emergence of data assets as new types of collateral in the digital economy

This highlights a burgeoning trend wherein data within economic and social contexts is being acknowledged for its intrinsic value, facilitating unprecedented financing opportunities.

As the technology landscape continues to shift, it also brings forth various challenges, most critically concerning data privacy, compliance, and risk managementWith the accelerated pace of technological change, safeguarding against threats to data integrity and privacy is crucialChai Hongfeng, an academic at Fudan University, advocated for a robust security framework within its finance-focused digital ecosystem, supported by collaborative mechanisms that incorporate the synergy of various technologies.

Moving forward, enhancing risk control capabilities remains vital for financial institutions as they navigate regulatory landscapesChen Siqing emphasized the importance of nurturing an innovative environment that fully embraces new technologies while also reinforcing regulatory frameworks to ensure stability in the digital finance sphere