Financial institutions to make most of AI

Tracy Li
AI will be a big driver for financial innovations and against financial risks, experts said at a forum in Shanghai.  
Tracy Li

Artificial intelligence technology will be a big driver for financial innovations and will also play an important role in guarding against financial risks, industry insiders said at a forum on Wednesday.

China’s national strategy of promoting advanced technologies has led to intelligent upgrading in various industries, and in-depth research and application of AI will bring new impetus to the innovation and development of the financial sector, said Pan Weidong, vice president of Shanghai Pudong Development Bank.

He was speaking at a forum co-hosted by the lender and the Beijing-based Fintech Innovation Alliance.

To embrace the trend of integrating financial technology with traditional banking space, the Shanghai-based lender has teamed up with partners to deliver more intelligent and efficient services to its customers over the past two years.

For example, Pudong Development Bank, in partnership with Tsinghua University and Baidu Inc, has conducted joint research on intelligent semantics in the financial industry and have drafted specifications to boost the standardization of such services.

Chen Jing, director of the steering committee of the Fintech Innovation Alliance and ex-head of the science and technology department at the People’s Bank of China, said that the integration of finance and technology will be very promising.

He predicted that AI technology will be widely used for preventing anti-fraud transactions in the credit card business, and for security in mobile payments.

“Now we are facing a historical opportunity of utilizing AI to fend off financial risks — a thorny issue that has plagued the regulators as well as the financial institutions,” Chen said. “As we have accumulated massive data and the key is how to use AI to make systemic analyses.”

Meanwhile, Pudong Development Bank signed a memorandum of understanding with six tech firms as it seeks to explore more cooperation in areas like information security, intelligent perception and intelligent marketing.

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