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CITIC Bank’s digital “artificial intelligence + big data” layout

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In March of this year, China CITIC Bank released its 2020 annual report and highlighted its investment and progress in financial technology.

The annual report shows that in 2020, CITIC Bank invested 6.926 billion yuan in science and technology, an increase of 24.43% year-on-year; the number of science and technology personnel in CITIC Bank has quadrupled in two years to 4190.

With the increasing investment in technology, the achievements of China CITIC Bank’s digital transformation are gradually emerging:

China CITIC Bank and its peers have established a large-scale blockchain cooperation ecology among domestic banks, and the cumulative transaction volume of the blockchain trade finance platform has exceeded 10 billion yuan

China CITIC Bank successfully put into production the first independent distributed core system of domestic medium and large banks-Lingyun Engineering

China CITIC Bank has nearly 800 application scenarios for intelligent robots (RPA), the branch application coverage rate exceeds 80%, and the average business operation efficiency has increased by more than 20%.

On March 15th, Li Qingping, who has a “financial iron lady”, resigned as chairman of China CITIC Bank, and Zhu Hexin, who was the former vice governor of finance, took over. Zhu Hexin is an “old Bank of Communications” with more than 20 years of experience in the financial industry. Under his leadership, CITIC Bank’s layout in the field of financial technology may undergo major changes.

Build a digital CITIC Bank

China CITIC Bank, founded in 1987 and headquartered in Beijing, is one of the nationwide commercial banks. Its total assets exceed 7 trillion yuan and the number of employees is nearly 60,000.

In the “Top 100 Chinese Banking Industry 2020” released by the China Banking Association, CITIC Bank ranked 11th according to the ranking of core Tier 1 capital. In this ranking, China CITIC Bank surpasses China Everbright Bank and is second only to Minsheng Bank.

CITIC Bank, like CITIC Securities, CITIC Construction Investment Securities, CITIC Trust, CITIC Prudential Life and other companies, is one of the subsidiaries of CITIC Group.

In 2020, China CITIC Bank, together with other CITIC Group subsidiaries, provided customers with a combined financing scale of 107.82 billion yuan, a year-on-year increase of 68%, breaking the “one trillion” mark for the first time.

On March 25, China CITIC Bank Co., Ltd. released its 2020 annual performance report. The report shows that China CITIC Bank will achieve revenue of 194.731 billion yuan in 2020, a year-on-year increase of 3.81%.

In recent years, China CITIC Bank has continuously increased its investment in financial technology.

In 2020, CITIC Bank invested nearly 7 billion yuan in technology, an increase of 24% over the previous year, and technology investment accounted for 3.56% of operating income.

As of the end of 2020, CITIC Bank has 4190 scientific and technical personnel (excluding subsidiaries), a year-on-year increase of 31.68%, and CITIC Bank’s scientific and technical personnel accounted for 7.60%.

The number of scientific and technological personnel in CITIC Bank has quadrupled in two years, which is also a supplement to the upcoming larger-scale digital transformation.

At the beginning of this year, China CITIC Bank released a new three-year development plan, proposing to use high-tech as the engine and high-quality development as the theme to strengthen the development of light and intensive.

In order to achieve high-quality development goals, The financial technology structure of China CITIC Bank has been adjusted to “three committees, two departments, and two centers” . Compared with 2019, China CITIC Bank has added a new data management committee to its 2020 annual report.

At the same time, China CITIC Bank also proposed the implementation path of “one reform, two transformations and three challenges”. In response, China CITIC Bank proposed to accelerate digital transformation and light capital transformation.

In terms of ecological scenario layout and corporate cooperation, China CITIC Bank has jointly built more than 5,500 scenarios with hundreds of partners such as UnionPay, Didi, JD.com, etc., serving 5.2 million users and accumulating 390 million capital transactions.

In cooperation with artificial intelligence-related applications, China CITIC Bank has launched cooperation with the three Internet giants of BAT, and other well-known artificial intelligence application technology manufacturers such as Megvii, HKUST Xunfei, Tongdun and Bangsheng, enriching itself in various fields. Artificial intelligence applications on business lines.

CITIC Bank AI combat

Artificial intelligence platform

As early as 2017, the artificial intelligence platform “CITIC Brain” independently developed by China CITIC Bank was fully launched.

In 2018, “CITIC Brain” initially has the ability to provide intelligent services for retail, corporate, custody, and compliance.

In 2020, with the “CITIC Brain” as the main engine, CITIC Bank will build an “AI Model Center” and an “AI Efficiency Center”, implement 307 “AI + data” precision models, and serve more than 10 million customers intelligently in real time.

Among them, wealth management AI intelligent recommendation achieved online sales of 232.65 billion yuan, landing strategic customer equity chain applications, and increasing management assets by more than 52.2 billion yuan.

Intelligent risk control

The 2020 annual report shows that China CITIC Bank has accelerated the practice of intelligent risk control, independently developed real-time intelligent anti-fraud and anti-money laundering systems, with an accuracy rate of 90% for real-time transaction monitoring and interception, and offline risk control screening and intercepting more than 17,000 risk events.

The bank’s credit card center uses big data, machine learning, cloud computing and other intelligent technologies to introduce multi-dimensional new data to enrich customer risk profiles. In 2020, a total of 26 full-process credit risk scoring cards will be iteratively optimized, effectively improving the ability of risk control and precise policy implementation; Through machine learning algorithms, it has achieved a new breakthrough in more efficient and accurate risk decision-making capabilities, and realized a 20% increase in transaction amount.

In 2018, China CITIC Bank and Bangsheng Technology reached a cooperation in the construction of risk control and anti-fraud, and contributed to the upgrade of CITIC Bank’s intelligent real-time risk control system.

In the same year, China CITIC Bank also reached a cooperation with Tongdun Technology. Tongdun Technology provides smart risk control middle-office services for China CITIC Bank Credit Card Center.

Smart marketing

According to the 2020 annual report, China CITIC Bank expanded its new customers by 12,800 new customers by increasing digital marketing and using the chain-based customer acquisition and product customer acquisition model, driving a deposit growth of 53.9 billion yuan.

In addition, CITIC Bank has also actively developed a retail business system, which has boosted the scale of assets by nearly 200 billion yuan, and the AI ​​smart recommendation for wealth management has achieved CITIC Bank’s online sales scale of more than 230 billion yuan.

In 2017, China CITIC Bank cooperated with Suoxinda Holdings, a global financial AI big data and integrated intelligent marketing solution manufacturer, and introduced Suoxinda AI, big data and other leading technologies and end-to-end digital intelligent marketing overall solutions to comprehensively build CITIC Bank Leading digital marketing system.

Smart Customer Service

In October 2018, China CITIC Bank Mobile Banking launched an intelligent voice service product to help visually impaired users experience barrier-free mobile financial services.

With the support of Tencent Cloud’s intelligent voice and semantic understanding technology, China CITIC Bank’s mobile banking intelligent voice service has achieved rapid upgrades.

With the help of intelligent voice technology, CITIC Bank’s customer service robots can meet the needs of scenarios such as question and answer, transfer tasks, account query tasks, financial tasks, small chats, etc., and provide solutions for complex financial transaction scenarios.

In the same year, China CITIC Bank also cooperated with HKUST iFLYTEK in intelligent customer service.

Robo-advisor

CITIC Bank’s robo-advisory product-“Xinzhitou”, on the basis of agency fund sales, integrates technologies such as big data analysis and quantitative financial models.

“Xinzhi Investment” analyzes the customer’s investment pain points from the three stages of pre-investment, investment, and post-investment, and provides customers with a complete set of fund investment solutions based on the customer’s profile and target risk strategy.

Lu Tiangui, the current business director of CITIC Bank, once introduced the three highlights of Xinzhi Investment in 2018:

One is to intelligently match target risks and simulated returns based on the customer’s risk assessment results, and recommend the most suitable product combination. According to reports, Xinzhi Investment has built an intelligent risk assessment model based on multi-dimensional data analysis of more than 2 million customers.

Second, Xinzhi Investment not only has forward-looking market analysis by investment research experts and professional research on underlying products, but also uses big data, investment models, and intelligent algorithms to make up for the lack of human computing power.

Third, the user experience is convenient. CITIC Bank searches for the optimal combination from more than 4,000 funds, and directly pushes the recommended asset allocation combination to users. Users make decisions, purchase with one click, and enjoy follow-up services. Experts continue to track the macro market and Bottom product situation.

Core system

In 2020, China CITIC Bank successfully put into production the first autonomous distributed core system (Lingyun Project) of domestic medium and large banks.

As the first to be put into production in China, the new generation of cloud-based credit card core system with independent intellectual property rights-the new core system of China CITIC Bank Credit Card StarCard, will be the first anniversary of stable operation in 2020.

The data shows that StarCard has successfully carried the operation and management of 110 million accounts. The peak transaction value is as high as 4,500 transactions per second, which is more than three times that of the original system. The average transaction response time is only 36 milliseconds, which is effective for satisfying, membership days, rush to buy, and marketing. Activities, Double Eleven Shopping Festival and other high-frequency trading application scenarios.

At the same time, the bank’s credit card center has steadily promoted the construction of the second phase of the upgrade of the new core system of StarCard, and has completed 30 planned subprojects of the second phase, and implemented “second-level” real-time and intelligent data business scenario services.

Blockchain

The 2020 annual report shows that the China CITIC Bank blockchain platform is the first to pass 5 credible evaluations of the China Academy of Information and Communications Technology at one time. The blockchain forfaiting trading platform has been recognized by the People’s Bank of China and upgraded to a national industry platform.

The blockchain forfaiting trading platform is a large-scale blockchain cooperation ecosystem between domestic banks established by China CITIC Bank and its peers.

At present, the cumulative transaction volume of the blockchain trade finance platform has exceeded 10 billion yuan.

cloud computing

In 2017, China CITIC Bank launched an ecological financial cloud platform. It is understood that the cloud platform is operated by financial institutions, technology companies, professional institutions, regulatory agencies, etc., in accordance with the mechanism of division of labor.

In the 2018 annual report, 53% of CITIC Bank’s applications have been migrated to the cloud platform, and the system deployment efficiency has increased by more than 20%.

In the 2020 annual report, the overall cloudification rate of China CITIC Bank’s infrastructure reached 96.71%, and the infrastructure resources have T+1 day delivery capabilities.

At present, China CITIC Bank pointed out that it has completed the first stage of production of the bank-level data lake, and the basic data platform of “one lake, one database” has been basically completed, and the overall processing performance has increased by more than 50%.

RPA (Intelligent Robot)

In 2019, Daguan Data won the bid for the AI ​​project of CITIC Bank Credit Card Center to provide it with RPA products and technical services.

The 2020 annual report shows that there are nearly 800 application scenarios for CITIC Bank’s intelligent robot (RPA), the branch application coverage rate exceeds 80%, and the average business operation efficiency has increased by more than 20%.

With online processes, mobile approvals, and intelligent customer identification, China CITIC Bank has shortened the time it takes to open public accounts by approximately 30%.

Biometrics

In terms of fingerprint recognition, China CITIC Bank and Lenovo Venture Capital Group’s subsidiary “National Authentication” reached a cooperation in 2018 to deploy a fingerprint login function module in the new version of mobile banking 4.0. Users only need to turn on the fingerprint login function to experience extreme speed Easy and quick to log in.

In the direction of face recognition, China CITIC Bank applied Megvii Technology’s face core product in 2018.

mobile bank

In the construction of mobile banking, China CITIC Bank is speeding up the construction of a multi-application ecological network with mobile banking as the main operating position and small programs as light touch points.

The dual APP of China CITIC Bank’s mobile banking and mobile card space is upgraded to version 7.0, and realizes interconnection; mobile banking APP 7.0 realizes the version switching that changes according to the customer, and on the basis of the popular standard version, it covers overseas finance, the elderly, and private banks. Five characteristic customer groups, small and micro, and foreign, provide personalized and exclusive services.

In the first half of 2020, China CITIC Bank has 10.85 million monthly active mobile banking (MAU) accounts, a year-on-year increase of 17%, and China CITIC Bank’s credit card APP “Moving Card Space” has 13.24 million monthly active users (MAU), an increase of 12% year-on-year.

As of the end of 2020, China CITIC Bank has 26.155 million online monthly active users, of which mobile banking APP transaction amount has increased by 20.66% over the previous year, and the replacement rate of e-banking transactions has reached 99.54%.

In terms of channel co-building, China CITIC Bank has also continued to strengthen online service integration. The mobile banking APP successfully launched the online business hall services of CITIC Securities and China Securities Construction Investment Securities, and jointly launched the CITIC Academy function with CITIC Publishing Group.

President Fang Heying: Build a first-class technology-based bank

At present, the senior management organization structure of China CITIC Bank presents a pattern of six presidents with “one director and five associates”.

On the evening of March 15, Li Qingping, the former chairman of China CITIC Bank, handed in her resignation. At the same time, the board of directors has elected the chairman of CITIC Group Zhu Hexin as the chairman of the bank, and the president of China CITIC Bank Fang Heying as the vice chairman.

Among them, President Fang Heying is a 25-year veteran of China CITIC Bank.

Since 1996, Fang Heying has worked at China CITIC Bank, where he has served as the bank’s financial market business director, Hangzhou branch president, and Suzhou branch president.

Now 55, he addressed the shareholders on behalf of China CITIC Bank in the 2020 China CITIC Bank Annual Report just released.

Looking forward to the next three years, Fang Heying stated in the annual report president’s speech that he will continue to increase investment in science and technology. Accelerate the digital transformation and build China CITIC Bank into a “first-class technology bank” , Through the same direction of technology and business, to drive more innovation and bring about greater changes.

At the level of financial technology, Lv Tiangui, the business director of CITIC Bank and the proposed vice president, also said in response to a question from a reporter from the Economic Information Daily that the goal of CITIC Bank is to build two major platforms in technology and data within three to five years. “Support and promote the transformation of the bank’s operation and management from informatization and digitization to intelligence, forming an agile + intelligent innovation system, and becoming a first-class technology-driven bank.”

Lu Tiangui also said that digital transformation has now been upgraded to a bank-wide strategy to promote the entire process of systematic changes from technology application, model innovation, process reengineering to organizational remodeling, and promote the improvement of the bank’s governance system and the improvement of governance capabilities.