Hosted by the Asian Banker magazine, the 2nd Future Global Finance Summit and the 19th Asian Banker Summit was held in Beijing from May 23 to 25. Representatives of the industry from China and abroad including Johanna Chua, the Asia-Pacific chief economist of Citibank; Kartik B. Arteya, the executive vice president of the US Federal Reserve Bank of Richmond; Yuanzheng Cao, chairman of BOC International Research Co., Ltd. and Kedi Wu, the vice president of Neo Online, a subsidiary of Neo Capital, exchanged ideas on topics such as leadership in the digital economy, reshaping global transaction and network security and the Belt and Road initiative.
In the sub-forum of Digital Economy Leadership, Kedi Wu was invited to share his views on “Where finance meets technology–Meeting societal needs through new platforms” with the host at the site, Jame DiBiasio, a co-founder of DigFin and Daniel Gusev, a partner of Gauss Ventures, a renowned venture investor in the UK.
Financial System of Neo Capital: Allowing every family to enjoy moderate benefits with moderate risks
Kedi Wu introduced the fact that previously Neo Capital had worked with the China Household Finance Survey and Research Center to probe into the level of financial asset allocation risk in Chinese households. They sampled 40,000-plus households and found that the assets of Chinese households were growing rapidly. However, the proportion of their financial asset allocation was at a low level internationally, only 12.4%, and was based on real estate supplemented by financial assets. This indicates that there is still a lot of room for the increase of financial asset allocation of Chinese households.
Neo Capital believes that good finance should be able to comply with the subtle financial demands of each household, control risks well and prevent fraud under a commercially sustainable model, to help households to borrow money with dignity and allow each household to enjoy moderate benefits with moderate risks. Providing new financial products that are safe, abundant and low-threshold and developing inclusive financial services raises new requirements on the business capacity, data handling capacity and risk control capacity of financial enterprises. Tough issues such as the difficulty in measuring the credit of borrowers, higher fraud protection technology requirements and high man-made operational risks can be solved effectively only by applying financial technology applicable to each specific case.
For this purpose, Neo Capital began to develop a strategy of Leading Finance with Technology in 2016, driving a comprehensive upgrade and transformation with financial technology and offering strong technical support to each core business with frontier technologies such as cloud computation, big data and mobile internet. Under the precondition of guaranteeing the privacy and safety of user data in such links as transmission security, storage security and authority management, Neo Capital enhanced the persona construction, operation optimization and risk control in several of its subsidiaries.
In meeting societal demands with financial technology: security comes first, efficiency comes second and benefits come third.
In mentioning the platform’s specific innovations in financial technology, Kedi Wu disclosed, based on the resources of Neo Capital Group, Neo Online independently established a model to effectively quantize credit risks and build a risk control core with intellectual property rights that connects to unify credit reference data and introduces external data more effectively. It launched user personas to better understand the service targets and built a real-time engine to strengthen the service capacity of its big data-based risk control platform.
Wu said, in today’s financial technology, finance is carried out through technological means. Therefore, to discuss how financial technology meets societal needs, we should first clarify its substantial logic.
“Security comes first. And when financial technology is added, the efficiency is significantly enhanced. Efficiency and experience come second. Corresponding benefits come third, which is consistent with security. Under these circumstances, we should keep enhancing our risk control capacity and evaluate assets before, during and after investment.” Kedi Wu said that by integrating online and offline structural and non-structural data, Neo Online has already accumulated certain practical experience in the establishment of big data risk control. At present, it can accurately analyze and effectively monitor the effects and efficiency of financial risk control and the risk pricing accuracy of products in the segmented markets. It can not only effectively safeguard clients’ financial security, but also ensures risk management and predictable returns for Neo Capital from its financial business.
Kedi Wu disclosed that, “In the future, Neo Online will continue to make innovations in financial technology such as the intelligent investment advisor and artificial intelligence. All of them will be applied in our financial technology system.”
About the Asian Banker
Established in 1996, The Asian Banker is a leading provider of strategic information for the global financial service sector, devoted to providing in-depth information and analysis with relevant development strategy to the Asian financial service sector. Headquartered in Singapore, it has opened offices in countries such as China, Malaysia, Europe and America. The annual summit in Singapore is its largest-scale and highest-level event, which has been held 17 times up to the current date. In 2017, it was officially renamed the Future New Finance Summit. More than 2,000 industry representatives from over 30 countries have dialogues and discussions about the trends of financial transformation and technological reform in the future.
About Neo Capital
Established in 2012, and headquartered in Shenzhen, Neo Capital Group Co., Ltd. (“Neo Capital”) is an integrated financial technology group, which is committed to providing all-round financial services to all people including the ordinary public and high net worth individuals.
At present, Neo Capital has formed three business clusters, namely, inclusive finance, financial management and investment management, with five subsidiaries, Neo Fund, Neo Online, Neo Inclusive Finance, Neo Investment and Neo Technology. It has opened more than 280 branches at home and abroad, with its business distributed in over 20 provinces and municipalities of China, serving over 8 million customers.
About Neo Online
Launched in June 2013, Neo Online (www.xiaoniu88.com) is the Inclusive financial platform developed by Neo Capital Management Group., Ltd. Neo Online’s vision is to make investment and financing become transparent, simple and efficient, to achieve the preservation and appreciation of all people, and become China’s influential Internet financial services platform. According to the 2016 China Internet Financial Platform Risk Rating and Analysis Report published by The Chinese Academy of Social Sciences, Neo Online ranked sixth nation-wide and first in South China.