In October 2023, the "Implementation Opinions on Promoting the High-quality Development of Inclusive Finance" was issued, bringing new opportunities for data-enabled inclusive finance. Ernst & Young[1] combined with the current status of Huaxia Bank's inclusive business, and used AI technology to support the high-quality development of inclusive finance in multiple scenarios.
1.Three-step strategy
EY has developed a "three-step strategy" with a focus on building a big data platform and providing unified data services to customers. The first step is to do a good job in the overall planning of data service capabilities, the second step is to build a data product service capability map, and the third step is to promote the application of data service scenarios. The "three-step strategy" realizes the closed-loop development from data assets to service capabilities, laying the foundation for sustainable business development and innovation.
2.EY AI Inclusive Model Library
To address the growing size and complexity of data, EY has launched an AI inclusive model library that covers the entire credit business process. The model library is designed for inclusive finance, realizes the applicability of the whole life cycle, multiple scenarios and multiple products, meets the needs of multiple regions and industries, and helps financial institutions improve business efficiency and risk control.
Figure: "Three-step strategy".
Since its establishment 30 years ago, Huaxia Bank, as a national joint-stock commercial bank, has actively responded to national policies, highlighted "Internet +" and "financial technology", and created a distinctive digital inclusive product system. In recent years, it has focused on using AI technology to achieve the high-quality development of inclusive finance in multiple scenarios, regions, industries and products. EY has partnered with Huaxia Bank to use AI technology to promote the high-quality development of inclusive finance, enhance its digital service capabilities, and provide digital, intelligent and characteristic comprehensive financial services for small and micro enterprises.
1.AI strategies are used to solve pre- and post-loan multi-scenario problems, reduce risks, and improve data service capabilities
In this service, EY sorted out Huaxia Bank's inclusive small and micro credit management process, and learned that it relies on its self-developed "Digital Inclusive Intelligent Risk Control Platform" to provide full-process digital processing for inclusive small and micro customers, improve efficiency, and meet the short-term, frequent and urgent financing needs of small and micro merchants. In order to further improve the applicability and objectivity of digital management, EY uses big data technology to develop an inclusive credit rating system, and develops credit approval and post-loan management strategy rules, providing solutions to the multi-scenario problem of digital inclusion.
2.Use strategy groups and process design to solve the problem of collaboration between the head office and branches, unify risk control standards, and take into account diversified products
In this service, EY sorted out a series of digital inclusive products developed by Huaxia Bank based on AI big data technology and data middle platform; It is understood that its upcoming full-process online personal operating mortgage loan can realize the functions of **application, **filing, **real estate valuation, automatic risk control verification, **contracting, **mortgage, **withdrawal and repayment, automatic post-loan, etc., providing faster intelligent financial services for small and micro customers. At the same time, EY researched Huaxia Bank's digital products for upstream and downstream customers in different industries, and various products meet the personalized needs of merchants, farmers, vegetable merchants and other clustered and clustered small and micro customers, and can provide customized services, with differences in risk assessment, interest rate pricing, etc., so EY has designed a set of general risk control processes and risk assessment systems to facilitate unified management by the head office. On this basis, each branch can set different access standards according to its own and product characteristics, so as to achieve an effective combination of product diversity and unified risk control standards.
Through this service, both parties clearly see the innovative potential and value of AI technology in the field of inclusive finance. In the future, EY hopes to use digital technology to provide financial institutions with professional risk management services more accurately, carry out more refined product design and customized services, improve data privacy protection, and ensure the steady development of AI technology in the field of financial inclusion.
Note: 1].In the title and text of this article, "Ernst & Young" refers to Ernst & Young (China) Corporate Advisory***
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