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Several regulators and experts said that financial technology promotes the digital transformation of the financial industry
Release time:2023-02-17 11:57:56

A number of regulators and experts said at the 2020 Financial Street Forum annual meeting on October 21 that the development of financial technology and the use of big data have promoted the transformation of the entire financial industry to the digital direction, and also increased the difficulty of risk prevention and control, which needs to be addressed in many ways. In addition, it is also necessary to strengthen the supervision of the application of science and technology and use scientific and technological means to supervise science and technology.

Big data is the foundation of financial services

From the perspective of the relationship between finance and technology, Wu Zhaohui, president of Zhejiang University, said that technology is changing from an external auxiliary support to an internal transformation force and has become an indispensable core element of financial development. The innovative application of disruptive technologies such as big data, artificial intelligence and cloud computing in finance is profoundly affecting the way financial services are provided.

"The market generally generalizes financial technology as' ABCDE ': A refers to artificial intelligence, B refers to big data, C refers to cloud computing and storage, D refers to distributed bookkeeping and blockchain, and E refers to e-commerce." Yi Gang, President of the People's Bank of China, said that big data is the most important in "ABCDE". It is the fulcrum of all technologies and the foundation of financial services. AI, cloud storage, distributed accounting and e-commerce are inseparable from big data.

Cai Esheng, Vice Chairman of the Standing Council of the China Financial Forty Forum and former Vice Chairman of the China Banking Regulatory Commission, said that financial intelligence is an inevitable trend in the development of financial technology innovation. Financial intelligence with artificial intelligence as the core represents higher production efficiency and broader connotation of production factors, and is the advanced form and inevitable direction of financial technology development. At present, around artificial intelligence, China has put a number of financial science and technology products into pilot projects. I believe that China can occupy a place at the top of financial intelligence in the future.

Data security protection is urgent

Yi Gang believes that the development of financial technology and the use of big data have promoted the transformation of the entire financial industry towards digitalization, but also caused problems such as trade secrets, personal privacy protection and data gap.

In the view of Fan Yifei, Vice President of the People's Bank of China, the deep integration of finance and technology has changed the financial operation mechanism and increased the difficulty of risk prevention and control while innovating financial products, reengineering business processes and improving service quality and efficiency. The development of financial innovation is facing new situations and challenges. For example, data security protection is urgent. More and more data transmission has shifted from the internal private network to the Internet, and a large number of sensitive information is directly exposed in the open network environment. At the same time, some consumers and financial institutions have relatively insufficient awareness of data protection, and do not fully understand the links and hazards of data leakage, while the means of illegal elements to steal data have been constantly updated, from face-to-face deception to remote network attacks, from Trojan horse viruses to "SMS sniffing", personal privacy disclosure and other security incidents have occurred frequently, and even endanger the safety of people's lives and property.

Cross-business risk cannot be ignored. Fan Yifei said that under the background of financial technology, financial mixed operation is more common, and multiple businesses are integrated, resulting in complex risks, difficult to identify, and increased spillovers. From the perspective of concealment, some financial technology innovation products have increased the difficulty of financial regulation definition and identification through whitewashing and packaging, making the risk concealment increased. Business cross risk puts forward higher requirements for risk management and stable operation of financial institutions, and poses severe challenges for the financial management department to carry out penetrating supervision, prevent and resolve financial risks.

Speaking of the impact of financial technology on the financial system, Cai Esheng said that three aspects should be paid attention to: the impact of technology development, the monopoly of technology giants and the privacy of data applications. He believes that unlike the traditional financial industry process control, Fintech can automatically identify customer needs and make efficient response, efficiently collect and analyze customer feedback, and update the product again. Under the impact of rapidly changing financial technology products, the new financial business model may have risks that exceed market expectations.

Improve regulatory technology

Yi Gang believes that the problems of trade secrets, personal privacy protection and data gap should be addressed in many ways. First, establish a clear legal framework and create an environment of fair competition. What should be transparent must be transparent, and what should be protected must be protected to prevent the abuse of privacy and business secrets. The second is to improve the financial supervision system. Third, strengthen international cooperation. Fourth, we should retain the traditional and effective financial transaction channels and service methods.

Fan Yifei said that we should strengthen the foundation and give full play to the multiplication of data elements. For example, optimize data governance. Establish and improve the data governance mechanism, strengthen the construction and management of data standards, data models and asset catalogs, clarify the ownership relationship of data, properly define the scientific definition of data ownership, use right, management right and income right, create the "common language" of financial data, and effectively improve the quality and management level of data. At the same time, strengthen data protection. Follow the principle of "user authorization, minimum sufficiency, special purpose, and whole-process protection", fully assess the potential risks, strengthen the security management of data throughout the life cycle, integrate national security, public rights and interests, personal privacy, and legitimate interests of enterprises and other factors to do a good job in data classification and classification, realize the refined management and differential protection of data, control the security gateway, and strictly prevent data leakage, tampering and abuse.

Cai Esheng said that the development of financial technology has brought challenges to regulation, and financial technology is restructuring the logic between financial regulation and financial business, making many emerging business forms outside the traditional financial regulatory system. Regulators lack sufficient technical means to dynamically monitor, track and timely warn financial technology, which may lead to regulatory deficiencies and many problems. Strengthening the application practice of science and technology supervision is an important global issue. The development of science and technology has made it impossible for the traditional supervision method to achieve penetrating supervision. However, the financial supervision method based on science and technology is becoming increasingly mature. Using scientific and technological means to supervise science and technology will help accelerate the development of financial technology.