---Financial Transformation and Opportunities in the Digital Age
On June 12, 2020, Yuan Junfeng, an expert from Ant Financial's Artificial Intelligence Department, was invited to give a lecture at an industry forum on the theme of "Financial Change and Opportunities in the Digital Age" at our institute. Expert Yuan Junfeng graduated from Fudan University and has over 10 years of work experience in the field of financial IT. He is also the author of the book "What Artificial Intelligence Brings to Financial Investment".
Expert Yuan Junfeng first introduced us to the digital transformation of the physical world. In the digital age, the process of online production and life is accelerating. Before the digitalization of the physical world, it is timely for China to launch large-scale new infrastructure projects. Experts point out that data has different values in different dimensions and naturally has externalities. During the continuous exploration process, data is highly likely to have value in other fields. In the digital age, the amount of data stored by enterprises has reached the PB level. With such a huge amount of data, if we can effectively utilize machines to mine knowledge and information that humans cannot recognize, our society will undergo tremendous changes.
Next, expert Yuan Junfeng further explained how we personally cope with the digital age. In the digital age, individuals are limited by their ability to collect and process information, and are at a disadvantage compared to machine decision-making. In addition, a large amount of data is often occupied by large enterprises and requires the use of large cloud computing servers to analyze applications, which further exacerbates the relative disadvantage of individuals due to information asymmetry. Data often comes from individual behavior, such as personal consumption and traffic data. Therefore, companies have an obligation to use this data to provide more convenient services for individuals, rather than just using data for profit. There is a huge gap between the digital age and human decision-making systems, and intelligent assistants are a direction to bridge this gap, such as human-machine integrated intelligent investment advisors.
From individuals to financial institutions, expert Yuan Junfeng explains how financial institutions can cope with the digital age. Investment related big data is generally divided into four categories: news, social media big data, market big data, industry big data, and sensor big data. The expert then introduced us to the big data investment analysis method of "reductionism". But experts point out that there are some problems with end-to-end optimization in financial investment, and our focus should not be on machine learning methods, but on problem-solving. After briefly introducing the intelligent path of financial investment institutions, experts pointed out the drawbacks of the Basel Accord. The Basel Accord conflicts with the era of digitization and intelligence, which to some extent hinders the digitalization process in the banking sector.
Finally, expert Yuan Junfeng mentioned the financial changes of today's era. In the digital age, emerging concepts such as digital currencies and blockchain based smart contracts will bring changes and opportunities to the financial sector. Experts point out that only change is eternal, and no matter what kind of change you face, don't be afraid and bravely face it. In the face of financial change, learning new technologies, coexisting with technical teams, and embracing change are the attitudes that should be taken when facing change.
During the questioning session, many students actively asked expert Yuan Junfeng questions. Some students have inquired about the impact of the current epidemic on the digital transformation of the financial industry. Expert Yuan Junfeng emphasized that the transformation is sustainable and disruptive, and in the future, the financial industry may generate better market design and division of labor strategies. In addition, expert Yuan Junfeng encourages students to strive to improve their own endowments and use their relative advantages to broaden their development areas.
Author: Zong Heping
Image provided by: Yang Guang
