Kevin Jiang from Tongdun Technology Delivers a Lecture to China UnionPay: Embracing Risk Management Technology and Fostering Innovation to Usher in an Era of Intelligence
Recently, Kevin Jiang, Founder and President of Tongdun Technology, at the invitation of China UnionPay Co. Ltd (“UnionPay”), delivered a lecture on his thought of the evolution of financial risk management in an era of artificial intelligence, which evoked enthusiastic response from the leaders of UnionPay and the peers in the risk management department.
Risk prevention and management in an era of artificial intelligence
As more and more financial services are offered through online channels, the traditional risk management mode is overwhelmed by explosive growth in risk, exploitation of loopholes, fraud and arbitrage over the Internet.
Boasting extensive big data and adopting digital transaction, finance is believed to be a natural scenario for the application of artificial intelligence, while the entire industry tends to encourage integration of artificial intelligence and risk management. It is imperative to foster significant innovation in idea, thinking and technology to usher in an era of intelligent risk management.
Kevin Jiang believes that, “The era of artificial intelligence necessitates a well-organized ecosystem of risk management, a closed loop of information incorporating early warning, monitoring in progress and post-hoc analysis, as well as active prevention measures, multidimensional monitoring, multifaceted technical tools and an intelligent risk management platform. With them, complete support can be provided for online real-time decision-making analysis, offline model training deployment, data storage management and intelligent model application, and a whole-process ‘end-to-cloud’ solution for intelligent risk management, analysis and decision-making can be developed.”
A perfect intelligent risk management system is absolutely a huge undertaking difficult to achieve by one financial institution, not to speak of considerable financial pressure. With external force and integration being an option, many financial institutions choose to leverage external resources and technical capability, and establish the ecosystem of intelligent risk management with the aid of a third party, thereby taking advantage of each other’s strength and delivering spectacular result.
Tongdun Technology is an independent intelligent risk management, analysis & decision-making service provider, which has gained effective cooperation with many domestic financial institutions, and developed an excellent model of collaboration. The past cooperation give Kevin Jiang much food for thought and he said, “The highest value of Tongdun lies in its pursuit of independent development, focus on technological empowerment and avoidance of vying for profit with clients. Tongdun devotes all its energy and resources to innovation, research and development, including those for tools & products, computing platforms, and capacity of machine learning & deep learning, and will further strengthen its efforts for breakthroughs and innovations in core technology. Tongdun is committed to serving clients better, contributing to the growth of partners and thus jointly creating value for clients.”
“Silent risk management” mode might prevail in the industry in the future
Looking forward to the future of risk management technology in the era of artificial intelligence, Kevin Jiang thinks that there will be the following trends with respect to intelligent risk management: 1. Transition from post-hoc stop-loss risk management to real-time feedback. 2. Gradual transformation from manual review and post verification strategy to automatic decision-making for most works. 3. Progressive balancing between tighter risk management and better user experience.
In addition, Kevin Jiang remarks that we must promote the coordinated development of technology and people; by exercising intelligent risk management, we should not neglect user experience, because users, in particular in the context of the Internet, may be “offended” by complicated risk management procedures, which might even frustrate the users. The simpler operation is, the better risk management procedures are. It will be preferable to conduct risk management without users’ knowledge, and it is expected that there will be increasing more “silent anti-fraud” modes and “silent risk management” modes.
People will surely stop looking at finance and technology in isolation, and will strive to provide intelligent and human-oriented financial service. Kevin Jiang remarks, “This is also our long-term objective.”