Transformation and transformation of traditional financial institutions in the context of financial

Differences and connections between technology companies and traditional financial institutions:

1. Different positioning: Technology companies mainly focus on long-tail customers that cannot be served by the traditional financial industry or are not valued enough, and take advantage of the scale effect brought about by the information technology revolution.

and lower marginal costs.

Enable long-tail customers to access effective financial services in areas such as microtransactions, market segments, etc.

Second, the driving factors are different: the traditional financial industry is process-driven, focusing on face-to-face direct communication with customers, in the process of collecting information, establishing risk control, and delivering services.

3. Different governance mechanisms: Compared with traditional financial institutions, which require governance mechanisms such as collateral registration and post-loan management, technology companies have a higher degree of marketization and win trust by formulating transparent rules and establishing mechanisms for public supervision.

Market Risk

For the management strategy of Sakura lead market risk, financial institutions maintain appropriate positions.

Take advantage of interest-rate sensitive financial instruments.

Trading is subject to interest rate risk (e.g. interest rate level or volatility).

changes in mortgage prepayment terms and differences in corporate bonds and emerging market credit ratings); Market maker in the forex and forex options markets.

or maintain a certain foreign exchange position, face foreign exchange risk, etc.

Risk management throughout the process.

In the framework, the Market Risk Management Department, as an executive department under the Risk Management Committee, is fully responsible for the market risk management and control of the entire company and reports directly to the Chief Executive Officer. The Department has a number of international offices in key areas of operation, all of which operate on a matrix basis.

The above content reference: Encyclopedia - Financial Institutions.

With the rapid development of artificial intelligence, cloud computing, big data and other technologies, the financial industry has ushered in historic opportunities, and at the same time, the financial industry, which is in the midst of deep digital transformation, has seen a new development direction. Relying on the development of the Internet, financial technology has become an inevitable trend in the development of the financial industry. However, technology, as a new factor in financial innovation, has also brought new problems and challenges to the financial industry

How to adjust the organizational structure? How does the business work? How are risks controlled?

Where is financial innovation headed? It has become a difficult problem at hand.

In recent years, with the rapid development of digital transformation, the financial industry has made in-depth changes to business processes and management and operation models with the help of digital solutions to adapt to the development of the times and market trends. The digital transformation of the financial industry is showing a development trend of scenario-based, platform-based, and intelligent financial services. O&M is an important means of digital transformation, and how to use new means to improve O&M efficiency and ensure digital transformation is particularly prominent.

AIOPS intelligent O&M has gradually become the primary choice for the digital transformation of the financial industry.

The intelligent O&M product independently developed by Qingchuang - Sherlock AIOPS intelligent operation platform is just customized for this purpose. It can interpret IT O&M from the perspective of global operations, and with the support of the AI algorithm platform, it can implement scenarios including accurate alarming, anomaly detection, root cause location, and capacity analysis, helping enterprises run their digital business efficiently, stably, and smoothly. Today, SHERLOCK AIOPS has been applied in industry scenarios such as government agencies, banking, insurance, transportation, manufacturing, and the Internet of Things, and has achieved good results.

For example, in a large banking transaction center, Sherlock AIOPS processes incremental 15TB+ data per day and reduces the false alarm rate by 90%; In small and medium-sized regional banks, customer satisfaction increased by 30%; In the first insurance company, the abnormal location time is shortened to less than 5 minutes, and the operation and maintenance efficiency is increased by more than 50%. ”

1. Technological innovation has promoted the transformation of financial products and models, and the use of mobile Internet, big data and other technologies can effectively reduce the threshold of financial services, increase the service to long-tail customers, rely on scientific and technological means to build scenarios, and use credit data accumulation to carry out new online products, so that consumer finance and inclusive finance can cover many consumer life scenarios and accurately serve consumers and small, medium and micro enterprises.

2. Scientific and technological innovation has promoted the optimization and improvement of financial services. By actively embracing financial technology and accelerating the transformation of digitalization, lightweight, and platform, financial services are fully online and scenario-based. For example, banks and direct banks are traditional commercial banks, which conform to the trend of financial technology, take the initiative to reform and transform innovative exploration, and use Internet mobile terminals as the contact point to provide customers with convenient and efficient online financial services.

3. Scientific and technological innovation has put forward higher requirements for the financial system and supervision. Technological innovation has brought about major changes in the form and path of financial risks, and data security, network security, information security, investor protection, etc. have become new topics in financial supervision. Regulatory authorities need to adapt to the new situation, establish and improve regulatory systems and mechanisms, and actively use big data, machine learning and other technical means to provide perfect institutional guarantees for maintaining market order and promoting fair competition.

Fintech has had a broad and far-reaching impact on traditional financial institutions. Here are some of the main aspects of impact:

1.Digital transformation: Fintech has driven the digital transformation of traditional financial institutions.

Traditional financial institutions need to adapt to technological advances, changing traditional paper-based operations and processes to digitally operate and deliver services. This enables financial institutions to process transactions more efficiently, provide a more convenient customer experience, and reduce operational costs.

2.New financial services: Fintech has brought a variety of new financial services, such as mobile payment, online lending, digital currency, etc.

Traditional financial institutions need to face the competition of these new services, but also recognize the potential opportunities of these services, and improve and innovate their products and services.

3.Technology-driven innovation: The rapid development of fintech companies has prompted traditional financial institutions to drive innovation.

Traditional financial institutions are beginning to invest in and adopt new technologies, such as artificial intelligence, big data analytics, blockchain, and more, to improve business efficiency, risk management, and customer experience. These innovations help traditional financial institutions stay competitive and provide better services.

4.Financial Inclusion: Fintech has opened up new opportunities for financial inclusion.

It provides convenient financial services to the unbanked and those with limited electronic payment capacity by lowering the cost and barrier to entry for financial services. This will help promote financial development and social inclusion in poor areas.

5.Risks and regulatory challenges: The rapid development of fintech has also brought with it a number of risks and regulatory challenges.

New technologies and business models may lead to new risks, such as data security risks, financial fraud, etc. Regulators need to follow up and develop fintech-adapted policies and norms to ensure the stability and fairness of the financial system.

Overall, the impact of fintech on traditional financial institutions is far-reaching. It forces traditional financial institutions to digitally transform, innovate and improve efficiency, while also providing an opportunity for financial inclusion. However, traditional financial institutions need to recognize the challenges and adjust their strategies in a timely manner to adapt to this rapidly changing fintech environment.