Currently, while China’s economy is at the transformation period, the key of this transformation is the brand prosperity and quality creating of the real economy. However, the relationship between finance and real economy of China is not comprehensive and close enough. The finance is supposed to feed the real economy, while the fact is that it is difficult for small and micro businesses, the majority of the real economy, to get help from financing institutions.
As shown by the data, over 70 million small and micro businesses in China contribute over 60% GDP, over 50% tax revenue, over 80% urban employment posts, about 65% patents for invention and over 80% new products, but, only a few can obtain the loan fund from financing institutions. The society has a great deal of money, but due to existing financing system, a large number of these funds are idle for one end of the market, while no fund is available for the other end.
Reason for this phenomenon is that loan product and service capacity of traditional financing institutions can’t meet the requirements of small loans of short period, small amount, high frequency and urgent demand characteristic, in addition, no effective risk management technology against the risk of small loans is available for financing institutions. However, along with “Internet +” and “technology +” permeating the financing field, this phenomenon is being improved. The key index for testing the strength of financial technology enterprises is how to apply the technology to better serve the real economy.
Firstly, small and micro businesses face problems when it comes to financing, like information asymmetry and difficult risk management. In the respect of financial technology, the application of big data risk control technology and credit rating model can provide a more precise evaluation against the credit of small and micro businesses as well as individuals. The challenge for enterprises is the ability of establishing the powerful data engine, anti-fraud model and credit value model, since the credit system is unsound.
Secondly, small and micro businesses need a lower financing cost and higher transaction efficiency. The application of financial technology can greatly reduce the resource matching cost and transaction cost, such as loan business process cost, risk control cost and so on. The cost reduction is the reason for financial technology enterprises to overlap the application of artificial intelligence technology based on the big data. The application of “big data + artificial intelligence” can continuously optimize the risk evaluation and control mode which further accelerate the efficiency.
Thirdly, small and micro businesses need broader financing channels. In this respect, traditional financing institutions spend huge manpower and capital, while, on-line platforms of financial technology enterprises own more advantages. For the latter, the key is how to strengthen the platform value and user loyalty.
We can find the level of financial technology enterprises in China from Xiaoying Keji (Small Winning Technology Company).
As for the risk control, WinSAFE risk control system creatively developed by Xiaoying analyzes value, repayment ability and repayment willingness of users based on the data engine, anti-fraud model, credit value model and geek learning model, and ensures fund security of users depending on its powerful data processing and modeling ability. WinSAFE risk control system also owns a powerful data engine, and can realize the cross validation with dozens of the third-party data sources.
As for the product, Xiaoying provides the bank-level security assurance and perfect Internet experience. The unique WinAGILE product development system abstracts over 100 properties from complex financial products, which can launch a new financial product via visual configurations; and guarantees the preciseness and correctness of financial products via the full coverage of automated testing and monitoring system.
In addition, Xiaoying has widely applied the artificial intelligence technology in the operation field; bioassay, automatic decision, intelligent quality inspection and intelligent customer service have become routine applications. These financial technologies show their advantages than the traditional finance, regarding improving the risk management level, reducing the financing cost, and improving the transaction efficiency and upgrading transaction experience. By which, the development of real economy can better get help from financing institutions.
No doubt, Xiaoying is a typical case in the financial industry.