With retail banking in the region becoming an increasingly digital proposition the future of customer-led retail banking distribution, no wonder the discussion of what defines success in this era of customer-led distribution is the topic of Fund Forum Asia China Summit held on Monday 3rd September in Hong Kong.
Maggie Ng, Founder and CEO of FinEX Asia joined Dr. King Au, CEO of Valued Partners and Gregory Van den Bergh, Founder and CEO of Bankorus, in the panel discussion moderated by Ken Yap, Managing Director of Cerulli Associates, to discuss how innovation and technology may change Chinese asset management, wealth management and banking models.
With the rise of the penetration rate of mobile users in China, the move into the mobile world allows everyone to have bank branches through their palm. Technology could help traditional financial service providers fast to adopt difference and challenges, Maggie said. The rise of fintech is not to take away existing business from banks but to help them to provide services better suit for the change of the user behaviors. Chinse investors, given the scale of China market and the easy access into internet, have the preference to eliminate as much human intervention as possible and such unique preference offers fintech a great development environment.
Maggie, while answered to the questions raised by the moderator and the audience, further addressed how technology could help tremendously in risk management. Compared with the traditional way of conducting risk management, categorizing individual underlying asset into various variables selected by risk managers, AI empowered risk management model has the ability to capture all relevant variables no matter how small the relevance may be. The benefit of such risk management model is to be able to segregate each underlying asset into the category that is best fit to its individual feature and to be able to dynamically monitor any change of the feature. The advantages of technology empowered risk management model are not only about cost efficiency but the ability to scale and the ability to adopt. The changes of the economy may lead to the movement of individual behavior of investing, borrowing, and spending and it is impossible to monitor and capture the movements everyday among thousands of hundreds of individual underlying assets manually.
With more and more non-traditional financial providers, such as e-commerce platform, step into the financial service industry, Chinese investors have the tendency to embrace fintech driven financial products. Maggie believes regulatory overall doesn’t hold discriminate against which providers, but regulations are to the financial service industry as a whole. Regulatory helps fintech industry to build up trust, which is one the key foundation of financial industry, with investors.
Fund Forum Asia is a series of Fund Forum International and delivers the most senior gathering of professionals in the region. With over 150+ CEOs and business leaders sharing their experience with global fund investors, this is the event for the industry to contribute to debate shaping the direction for asset management in Asia. FinEX Asia’s AI-powered asset management platform places us at the heart of the new wave of asset management, as we connect investors with the right assets for their risk and investment needs. All while selecting the best-returning assets based on strong technology and risk framework.