feng liang, president of mybank: small and micro-enterprises’ liquidity management will open up a new blue ocean for bank financial management
2024-09-06
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inclusive finance is facing new challenges.
in october 2023, the state council issued the "implementation opinions on promoting the high-quality development of inclusive finance", which clearly proposed to build a wealth management product and service system with complete categories, rich strategies and clear levels to broaden residents' property income channels.
the development of inclusive financial management has become an integral part of the high-quality development of inclusive finance, and is also an inevitable choice for implementing the political and people-oriented nature of financial services.
how can financial institutions solve the problem of inclusive financial management? what are the differences between products and services? what new imagination space is there under the new wave of ai? on september 6, at the 2024 inclusion·the bund conference bank wealth management fintech forum, feng liang, president of mybank, shared his thoughts. at the same time, the inclusive financial management solution based on the ai big model, the "cuckoo" system, was released.
small and micro-enterprises’ liquidity management is a blank area for inclusive finance
in 2013, the third plenary session of the 18th cpc central committee formally proposed "developing inclusive finance" and made it one of the contents of comprehensively deepening reform. over the past 10 years, china's inclusive finance development has achieved historic achievements, with many indicators leading the world.
according to data released by the people's bank of china, the balance of inclusive small and micro loans nationwide grew to 32.3 trillion yuan at the end of the first half of this year, more than three times the 6.8 trillion yuan in 2017 when the regulatory authorities just began to announce the balance of inclusive small and micro loans. the number of inclusive small and micro loan credit accounts has reached more than 60 million, equivalent to one-third of the country's market entities have obtained loan credit.
"in the past decade, inclusive finance has been equal to inclusive credit, and the working capital management of small and micro businesses is still a blank area." feng liang said that the reason is that it is in a state of "no one manages" and "cannot be managed":
large enterprises have professional investment departments within them and corporate financial services provided by banks outside them. data shows that nearly 20% of the profits of large enterprises come from asset appreciation.
individual users also have a wealth of financial management service agencies and platforms. data from the people's bank of china shows that the average chinese person has 6.9 bank cards, and buying funds through alipay has become a lifestyle for young people.
on the one hand, small and micro business operators have no dedicated service agencies for working capital management; on the other hand, due to the complex operating cycles, large capital fluctuations, and high liquidity, they cannot afford the asset management services of large enterprises, and financial products for individuals are difficult to use.
this demand is not niche. data from the state administration for market regulation show that as of the end of 2023, there were 124 million individual industrial and commercial households and 52 million small, medium and micro enterprises nationwide, with operating turnover approaching 50 trillion yuan.
mybank's "cuckoo" system allows small and micro businesses to manage money like large companies
it is not easy to manage small and micro businesses’ money.
feng liang showed the fluctuations in the capital flows of five typical small and micro business operators: "the peak of e-commerce payment collection is after 618 and double 11, and the peak of spending is before the big promotion; a chain of barbecue rice brands opened near a school has a low season during the winter and summer vacations, and a lot of working capital is deposited in the account; the tonglu sugar water shop, business is closed until 11 pm, and the weekend revenue is twice that of usual times..."
the operating cycles are different, and large fluctuations in funds are a distinct feature. feng liang believes that the management of working capital of small and micro enterprises needs to meet three requirements: first, the security of funds, so that there can be no large losses; second, liquidity that fits the operating cycle, so that money can be withdrawn when needed; and third, the stability of income.
based on these characteristics, mybank has chosen bank wealth management as the key category of its inclusive wealth management solution "cuckoo system". bank wealth management has a variety of product options with maturities of 7 days, 14 days, 30 days, etc., with low volatility and stable returns.
according to feng liang, the "cuckoo system" is an innovative exploration by ant financial services group in the field of asset management services for small and micro enterprises. it uses a large ai model to predict the capital flow of small and micro enterprises in thousands of industries, and works with the bank's wealth management subsidiaries to customize wealth management products that fit their business cycles.
the "cuckoo" system provides a product matrix of the "three lucky treasures" to meet the various liquidity management needs of small and micro businesses:
yu'ebao is a "coin purse that earns money while collecting", serving small and micro businesses that need money at any time. it has three special features: first, alipay payments can be automatically transferred; second, business can be managed at night; third, quick payment can be made when purchasing goods. currently, yu'ebao has served more than 40 million small and micro users, 40% of whom purchase after 3 pm.
wenlibao is a new bank wealth management "specialty store" launched by mybank, which serves small and micro businesses that do not need money in the short term. wenlibao selects products with different maturities, such as 7 days and 30 days, to meet the wealth management needs of small and micro businesses in different periods.
yuelibao is a "zero deposit and lump sum withdrawal" piggy bank, serving the money that small and micro businesses need on a regular basis every month. "small and micro businesses receive small and high-frequency payments, and their expenditures are relatively fixed, such as paying salaries in the middle of the month and paying for goods at the end of the month. yuelibao meets the needs of small and micro businesses, and supports daily purchases and redemptions on fixed dates every month." feng liang said that yuelibao's popularity exceeded expectations. ping an bank's yuelibao product had a subscription volume of more than 6 billion yuan in 60 days after it was launched.
in addition, mybank has deeply integrated the "three treasures" with the business scenarios of small and micro businesses by leveraging the advantages of digital banking. merchants operating on multiple platforms such as taobao, tmall, and alipay can use mybank's one account to receive payments, thereby managing their finances conveniently. in addition, merchants can use mybank's quick payment to purchase goods on 1688, or top up marketing on platforms such as douyin and alimama, with funds arriving in seconds and 0 handling fees.
ai big models drive digitalization of bank financial management
innovation in products and experience comes from technological innovation.
to solve the problem of smes managing money, it is necessary to accurately predict the flow of sme funds. feng liang gave an analogy, saying that it is like driving a ship in rapids and dangerous shoals, which requires the crew to be able to predict the height of the wind and waves and the speed of the water flow - "in the past, we relied on the experience of the crew, but now we can use ai big models."
it is reported that in the "cuckoo" system, the application of ai large models mainly includes two aspects:
on the one hand, "cuckoo" uses the first-of-its-kind time series encoder to build a large model for predicting small and micro capital flows, forming capital flow predictions for different groups such as e-commerce, code merchants, distributors, and farmers, with an accuracy rate of over 95%.
on the other hand, cuckoo builds a product quantity and price model based on the forecast of small and micro capital flow to predict the future subscription and redemption amount of wealth management products. based on the forecast results, bank wealth management subsidiaries can improve the efficiency of capital utilization and asset allocation by 10%, thereby increasing product yields.
the whole process is divided into three steps: taking the e-commerce customer group as an example, the first step is that the two weeks after double 11 are the peak period for e-commerce payment collection. "cuckoo" can predict the revenue of each e-commerce customer and the overall revenue amount and fluctuation pattern of the e-commerce customer group. in the second step, cuckoo combines the capital flow forecast and cooperates with the bank's wealth management subsidiary to provide corresponding wealth management products for the e-commerce customer group. in the third step, cuckoo predicts the future subscription and redemption of this product through the large-scale volume-price model, providing a reference for the capital reserve and asset allocation of the bank's wealth management subsidiary.
citic bank wealth management is one of the first partners of the cuckoo system. it is reported that the end of the month and the end of the quarter are generally the peak periods for the redemption of wealth management products. based on experience, during the peak period of redemption, citic bank wealth management usually arranges 20% of liquidity for high-liquidity products. in july this year, the cuckoo system accurately predicted the redemption of a product. citic bank wealth management conducted a prudent analysis of the product and, after comprehensive evaluation, reduced the liquidity provision to less than 10%, and flexibly adjusted the leverage ratio and asset allocation accordingly. with the overall interest rate of the industry falling, the yield of this product increased by 2-3bp.
so far, mybank has reached agency sales cooperation with 23 bank wealth management subsidiaries, and its agency sales scale ranks first in the industry. among them, 5 bank wealth management subsidiaries have in-depth cooperation with cuckoo, jointly helping to optimize the experience of 7 exclusive wealth management products for small and micro businesses.
"now standing at the crossroads of 20 years of bank wealth management, we look forward to working with bank wealth management subsidiaries to jointly create a vast ocean of inclusive wealth management." feng liang said that based on the technology and service capabilities of the cuckoo system, mybank will work with the industry to explore the future of inclusive wealth management, enrich and diversify financial services, enhance the operational resilience of small and micro businesses, and serve the development of the real economy.
