How does technology reshape the new format of financial services？ KPMG China summarized these nine trends.
At present, the rapid penetration of a new generation of information technology in various industries is the general trend, and the financial industry is the most important. Financial services have gradually evolved in the innovation and development of financial technology, which has opened a new situation of digital transformation and gradually become a new engine to promote the transformation and upgrading of the whole industry and the whole industrial chain.
The newly released KPMG China Double 50 list of financial technology enterprises in 2023 and the annual trend report integrate the industry empowerment resources, sort out the strategic advantages of special fields, and emphasize the development trend of inclusive finance from "integration of numbers and reality" to "symbiosis of numbers and reality", which provides multi-faceted reference and support for the prosperity of China’s financial technology industry and promotes the construction of China’s financial technology ecosystem.
Huang Aizhou, managing partner of KPMG China Financial Technology, said that in the process of digital transformation of the financial industry, there are unique advantages compared with other industries in the three pillars: algorithm, computing power and data, which are needed for the vertical model of the industry to land. Among them, the data determines the intelligent scope of the big model, and the financial industry has mastered a large number of historical data and written materials, which provides natural convenience for the development of the big model of the industry; Financial technology enterprises have also formed their own unique solutions in the process of financial digitalization and intelligence in terms of algorithms and computing power. It is expected that as the bottom big model changes from increment to stock stage, fighting for quality and landing will become the focus of competition, and the competitive advantage of enterprises on the reasoning side of the force model will be further revealed.
The report analyzes and summarizes the listed enterprises in five dimensions: professional field, city and region, main technical elements, proportion of technical personnel and establishment time.
In addition, the report also introduces in detail the development trend and future development layout of financial technology in 2023.
Trend 1: The development of financial macro-model will have a far-reaching impact on the paradigm of financial technology industry (annual trend). 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.
Trend 2: Science and technology investment pays more attention to output energy efficiency, and peer-to-peer science and technology output changes to ecological empowerment mode (integrated financial technology). 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: AI helps to innovate wealth management, and the core system of the organization is autonomous and accelerated (wealth technology). 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. It is expected 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 into risk reduction management, and the service boundary (insurance technology) has been continuously expanded in combination with industrial upgrading. At present, the principle of risk management in insurance industry has 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: Digital symbiosis and digital platform services accelerate the development of inclusive finance (Pratt & Whitney Technology). 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: Multi-parties join hands to expand the new blue ocean of supply chain finance, and scene product innovation is emerging (supply chain technology). 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: Mobile payment innovation scenario application, cross-border payment opens up a new chapter in the sea (payment technology). 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: Regulatory technology is expected to improve regulatory efficiency with the help of large models (regulatory technology). 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: A new round of development opportunities will be opened, and a big article on digital finance (platform technology empowerment) will be done with the tide. At the present stage, the trends of innovation and going out to sea are highly certain, and actions such as "data elements ×" and "high-quality development of computing infrastructure" have been steadily promoted, which coincides with the opportunity of technological change brought by the big financial model and generative AI, and 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.
Author: Tang Weijie
Text: Tang Weijie Photo: Information Photo Editor: Shang Hui Editor: Rong Bing
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