Today: December 17, 2017, 1:30 am
  
Business

Greg Gibb, Lufax: In-depth Analysis The Impact of Big Data and AI in the Future of Finance

Greg Gibb, Lufax: In-depth Analysis The Impact of Big Data and AI in the Future of Finance
PR-Inside.com: 2017-11-15 02:45:19
HONG KONG, Nov 14, 2017 - (ACN Newswire) - "It only takes a few minutes or even seconds to make decision on loan, which in turn will increase the loaning opportunity for each borrower." - Greg pointed out that big data and AI have great impact on the financial sector.

On 4 Nov 2017, Greg Gibb, Co-Chairman and CEO of Lufax Holdings ("Lufax"), gave a keynote speech at the 2nd Annual Conference on "The Chinese Era of Digital Finance" at the Institute of Digital Finance, Peking University, where he specifically analyzed the financial impact of big data and Artificial Intelligence (AI). Greg believed that big data and AI financial management can increase market transparency, and as such the financial institutions could render investors with more pertinent services, and assist their clients to diversify investment risk, improve operation efficiency for financial institutions and sustain the real economic development.


Greg pointed out that big data and AI have great impact on the financial sector, For example, they keep institutions to understand the credit standing of individual borrower from multiple perspectives so that a speedy judgement could be made . "It only takes a few minutes or even seconds to make decision on loan, which in turn will increase the loaning opportunity for each borrower." AI and big data will lead the market to a higher level of transparency and standardization. Therefore, financial institutions could have a faster understanding on corporations, including market changes within the respective industry, corporate position and cash flow status, etc.

Big Data and AI can also help the platform to better understand the specific needs of the investors in order that a better choice of products can be arranged. Greg said, "We found that the accuracy of the traditional (questionnaire) method of assessing the customers' need is relatively low. In the past few years, we found that the data from the clients' end, including their answers to a few psychological issues, we can grasp even more understanding of their ability to withstand risk. Therefore, in the future, not only that AI and big data can enable us to attain a thorough understanding of our clients and companies from the asset end, but also enable us to know if the investors are suitable participants of the market and which investment products are most appropriate from the investment end."

"The development on big data and AI will lead to the emerging of many new product portfolios for clients to invest in diversified sectors; or if adopted dynamically, clients' fund can be allocated to diversified areas, with relevant market trends taken into consideration in order to reduce overall investment risk and to increase overall investment return." The growing popularity of the U.S. Exchange Traded Funds (ETFs) in recent years has served as an evident. ETF was originally a passive investment tool, while with the development of big data, it was then transformed into a more active and less costly way of investment. ETF had been gradually replacing the largest fund market.

The future development of big data and AI will also have a major impact on matching mechanism. "If there are clear rating standards on the asset end and lots of automatic investment tools with detailed understanding of individual investor, the market can actually achieve automatic matching." The automatic matching mechanism can greatly reduce labor costs as well as financial costs and bring about inclusion in financial services.

"In the past five years, we think the internet has only exerted its influence on channel extension, but big data will affect the whole financial market in all aspects in the next five years. Firstly, AI and big data will enhance market transparency and standardization and support development in real economy; secondly, it can help investors to attain more diversified investment strategies, and clients can attain higher returns. This is a relatively big help to the society as a whole, yet a great challenge for the financial sector in itself."

Greg also put forward that there could be induced-risk coming along with big data and AI. Firstly, short-term accuracy does not guarantee the long-term one; secondly, as large number of transactions will be assigned to computerized automation mechanism, this can bring different problems. "We cannot conclude that large data and AI must necessarily be good. We must be careful in controlling risk." Greg added.

Topic: Press release summary

Sectors: Daily Finance, Daily News

www.acnnewswire.com

From the Asia Corporate News Network

Copyright © 2017 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.

Press Information


Published by
ACN Newswire
+65 6304 8926
e-mail
www.acnnewswire.com



# 767 Words
Related Articles
More From The Author
Hong Kong Wine & Spirits Fair Draws [..]
Strong Asian Market Potential Uncorked HONG KONG, Nov 12, 2017 - (ACN Newswire) - The 10th edition of the Hong [..]
AYA Bank, MPU and JCB Introduce First [..]
Yangon and Tokyo, Nov 14, 2017 - (ACN Newswire) - Ayeyarwady Bank (AYA Bank), a major commercial bank in the [..]
Hong Kong Optical Fair Attracted 16,000+ Buyers
Emerging Markets See Good Growth and High-end Brands Tipped to be Top Sellers HONG KONG, Nov 10, 2017 - (ACN [..]
Voltage's Visual Romance Apps 'Love 365: Find [..]
TOKYO, Nov 14, 2017 - (ACN Newswire) - Voltage Inc. (Shibuya, Tokyo, President: Yuzi Tsutani) released its latest female-oriented English-language [..]
mybitwallet introduces Payment Request feature - for [..]
SINGAPORE, Nov 10, 2017 - (ACN Newswire) - mybitwallet, a world-wide, online payment services e-wallet, is pleased to announce the [..]
 
More From Business
SDRL - Seadrill Announces Updated Business Plan
Hamilton, Bermuda, December 16, 2017 - On September 12, 2017, Seadrill Limited ("Seadrill" or the "Company") filed [..]
Oxford Immunotec and QIAGEN N.V. Settle Patent [..]
Agreement includes payment of $27.5 million to Oxford, royalty-free license to QIAGEN and dismissal of all pending litigation OXFORD, [..]
Algeco Scotsman Announces Acquisition of Iron Horse [..]
BALTIMORE, Dec. 15, 2017 (GLOBE NEWSWIRE) -- Algeco/Scotsman Holding S.à r.l. (together with its subsidiaries, the "Algeco Group") [..]
Wealth Migrate Launches WEALTHE Coin to Democratize [..]
HONG KONG, Dec. 15, 2017 (GLOBE NEWSWIRE) -- Global online real estate marketplace Wealth Migrate today launched the WEALTHE Coin, a [..]
INGREDION INCORPORATED DECLARES QUARTERLY DIVIDEND OF [..]
WESTCHESTER, Ill., December 15, 2017 - Today, the Board of Directors of Ingredion Incorporated (NYSE: INGR) declared a quarterly dividend [..]

Disclaimer: If you have any questions regarding information in this press release please contact the company added in the press release. Please do not contact pr-inside. We will not be able to assist you. PR-inside disclaims the content included in this release.