撰写oneOn September 9th, KPMG released the 2023 KPMG China Financial Technology Enterprise Double 50 Report (hereinafter referred to as the Report). The report puts forward nine major trends in the current development of financial technology.
First, in terms of annual trends, the development of financial macro-model will have a far-reaching impact on the paradigm of financial technology industry.In the era of mobile Internet, China’s financial technology has made numerous innovations in mobile payment, digital credit and other fields, leading the world. Domestic manufacturers are actively developing the layout of large financial models, and relevant enterprises need to build competitive advantages by "having data" and "understanding scenarios".
The wide application of the future financial big model will have a subversive impact on the current industry paradigm in the following aspects: the change of AI cognition and concept, reshaping customer service process and experience, improving risk management, improving financial service efficiency and innovating financial business forms.
Huang Aizhou, managing partner of KPMG China Financial Technology, told Interface News that in the process of digital transformation of the financial industry, three pillars are needed for the vertical model of the industry, namely, algorithm, computing power and data.
Trend 2: In terms of comprehensive financial technology, science and technology investment pays more attention to output energy efficiency, and peer-to-peer science and technology output changes to ecological empowerment. Comprehensive financial technology enterprises actively embrace the new round of scientific and technological development opportunities brought by the big model by virtue of their scientific and technological advantages and innate financial industry genes. On the one hand, we continue to increase investment in science and technology, but pay more attention to business orientation and precise focus in objectives and methods; On the other hand, it continues to export scientific and technological capabilities to its peers, and the service direction has changed from traditional technical empowerment to all-round ecological empowerment.
Trend 3: In terms of wealth technology, AI helps to innovate wealth management and accelerate the autonomy of institutional core systems. Since the end of 2022, the explosive development of AIGC has brought great imagination to the financial industry. Wealth technology companies apply their accumulated data and experience in the field of AI application to the training of financial big models, providing support for wealth management business scenarios such as investment, research and marketing.
KPMG predicts that with the maturity of AIGC technology, wealth management institutions will explore more application scenarios of the big model to improve efficiency and service upgrade; At the same time, AIGC still needs to be cautious in providing investment advice to customers directly, due to unclear relevant supervision and data security and data privacy issues.
On the other hand, wealth technology enterprises actively provide the latest technical solutions for large and medium-sized wealth management institutions, and gradually improve the efficiency, stability and autonomy of the core system through the modularization and decentralization of distributed technology.
Trend 4: Insurance technology has evolved to risk reduction management, and the service boundary has been continuously expanded in combination with industrial upgrading. KPMG pointed out that the current risk management principles of the insurance industry have gradually evolved from equal risk management to risk reduction management. On the one hand, relying on the wide application of new technologies, insurance technology companies will transform the original uninsurable risks into insurable risks, and relax the original restrictive underwriting conditions to comprehensive underwriting, which will create a broader insurance market space. On the other hand, technology no longer depends on insurance, but penetrates into the development process of all walks of life, and in the process of development, new risk management demands are derived, and the service boundary of insurance technology is continuously expanded by combining with industrial upgrading.
Trend 5: In terms of Pratt & Whitney Technology, KPMG pointed out that digital symbiosis and digital platform services have accelerated the development of inclusive finance. The symbiosis of number and reality will accelerate the development of inclusive finance, thus achieving the high-quality development goals of inclusive finance, such as more popular basic financial services and more convenient financing for business entities. In addition, through the digital service platform, small and medium-sized enterprises can widely access digital resources, build digital intelligent business processes, meet the ever-changing market demand, and accelerate the digital intelligent transformation of small and medium-sized enterprises.
Trend 6: in terms of supply chain technology,Multi-party cooperationThe new blue ocean of supply chain finance, scene product innovation began to appear. With the vigorous development of digital economy, the digital penetration rate of supply chain finance has gradually increased. The supply chain science and technology platform has accelerated its efforts in the scene business. It is expected that there will be more scene-based innovative products based on data credit in the future, and the traditional confirmation mode will begin to weaken. In addition, many large enterprise groups have responded to the policy call and accelerated the pace of building a supply chain platform; Financial institutions also pay more attention to cooperation with core enterprises and high-quality supply chain technology third-party platforms.
Trend 7: In terms of payment technology, innovative scenarios of mobile payment are applied, and cross-border payment opens up a new chapter in the sea. From the C side, the third-party payment platform expands its business by exploring new scenes and product innovation; From the B side, the mobile payment platform is empowered based on the payment function and provides integrated services. In addition, the cross-border payment platform not only provides payment services for customers, but also provides services such as foreign exchange and foreign exchange risk management for enterprises, as well as services such as platform opening, global acquiring, overseas marketing and supply chain financing, so as to provide customers with comprehensive services to enhance customer stickiness.
Trend 8: in terms of regulatory technology, regulatory technology is expected to improve regulatory efficiency with the help of large models. The rapid development of emerging technologies such as AIGC provides imagination for the development of financial supervision technology, and the development of supervision technology will increasingly rely on scientific and technological means to achieve more efficient and accurate supervision. At the same time, the development of regulatory technology will also promote financial technology innovation and empower the financial industry to deepen digital transformation.
Trend 9: In terms of platform technology empowerment, a new round of development opportunities has opened. KPMG pointed out that at the present stage, the trends such as innovation and going to sea are highly certain, and the actions such as "data elements ×" and "high-quality development of computing infrastructure" are steadily advancing, which coincides with the opportunity of technological change brought by financial macro-model and generative AI, which is expected to drive the sustained release of China’s financial technology value, further affect the global market and help the high-quality development of digital finance.
Zhang Chudong, vice chairman of KPMG China and managing partner of Asia Pacific and China’s financial industry, said that the digital transformation of the financial industry is regarded as an important way to achieve a strong financial country. As the core technology driving force of digital transformation, financial technology, with the help of big data, artificial intelligence, blockchain and other technologies, especially the rise of big model technology, is expected to lead revolutionary changes in the field of financial technology. Looking forward to the future, financial technology enterprises need to keep up with cutting-edge technology trends, seize development opportunities, and play a greater role in promoting the digital transformation of the financial industry, serving the real economy, and preventing financial risks.