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Prof. Huang Zhuo: FitTech Empowers Industrial Transformation

May 29-2023   



Currently China’s FinTech enjoys innovations mostly centered on the consumption internet, i.e., the retail end, but Prof. Huang Zhuo believed that high-quality economic development needs to derive momentum from digitalization of industries. Therefore, industry-oriented digital finance will be the next focus of development, ushering in a new financial mode that is backed up by the industrial internet, uses data as a productive factor, and has data credit at the core. He made the remarks in the 2023 INNO CHINA Summit on May 9. He is Assistant Dean of NSD, Executive Deputy Director of PKU Institute of Digital Finance, and Deputy Dean of PKU Changsha Institute of Computing and Digital Economy.

 

China’s financial institutions have passed through various stages of digital transformation, said Prof. Huang. From 2010 to 2013, they shifted towards e-banking and mobile banking. Between 2014 and 2017, they worked on deploying the internet, primarily digital channels. In the period 2018-2021, FinTech and digital technology came into the limelight. By 2022, these institutions tilted their digital transformation towards intelligentization.

 

The advent of ChatGPT marks the singularity that the application of artificial intelligence has transcended. Though hindered by the ‘stranglehold’ policy of the US in high-performance chips, China still has proprietary capabilities in common computing ones, which is complemented by the country’s advantages in AI algorithm, talents, and patents, said Prof. Huang. In addition, China leads the world in data size and diversity, albeit not without challenges in data application.

 

Besides industry-oriented digital finance, digital supply chain finance can be expected to be another hot spot for financial firms, said Prof. Huang. A risk control system for digital supply chain can be built on the basis of profound understanding of industrial logic and effective utilization of industrial eco-system and scenarios. In the meantime, authentic dynamic business data and behavioral data can substitute traditional guarantees and collaterals as the basic variable for credit and risk control, thereby lowering the threshold for financial services.

 

Data constitutes the core element of the digital economy and digital transformation. Due to its idiosyncratic qualities, data cannot be subject to the same governance and trading mode of traditional factors. Relevant reform guidelines by the authorities, including the establishment of the State Data Bureau and other institutional arrangements, will facilitate the development of the data factor market, including the possibility of regulating public data and making it accessible in the market.

Prof. Huang Zhuo: FitTech Empowers Industrial Transformation

May 29-2023   



Currently China’s FinTech enjoys innovations mostly centered on the consumption internet, i.e., the retail end, but Prof. Huang Zhuo believed that high-quality economic development needs to derive momentum from digitalization of industries. Therefore, industry-oriented digital finance will be the next focus of development, ushering in a new financial mode that is backed up by the industrial internet, uses data as a productive factor, and has data credit at the core. He made the remarks in the 2023 INNO CHINA Summit on May 9. He is Assistant Dean of NSD, Executive Deputy Director of PKU Institute of Digital Finance, and Deputy Dean of PKU Changsha Institute of Computing and Digital Economy.

 

China’s financial institutions have passed through various stages of digital transformation, said Prof. Huang. From 2010 to 2013, they shifted towards e-banking and mobile banking. Between 2014 and 2017, they worked on deploying the internet, primarily digital channels. In the period 2018-2021, FinTech and digital technology came into the limelight. By 2022, these institutions tilted their digital transformation towards intelligentization.

 

The advent of ChatGPT marks the singularity that the application of artificial intelligence has transcended. Though hindered by the ‘stranglehold’ policy of the US in high-performance chips, China still has proprietary capabilities in common computing ones, which is complemented by the country’s advantages in AI algorithm, talents, and patents, said Prof. Huang. In addition, China leads the world in data size and diversity, albeit not without challenges in data application.

 

Besides industry-oriented digital finance, digital supply chain finance can be expected to be another hot spot for financial firms, said Prof. Huang. A risk control system for digital supply chain can be built on the basis of profound understanding of industrial logic and effective utilization of industrial eco-system and scenarios. In the meantime, authentic dynamic business data and behavioral data can substitute traditional guarantees and collaterals as the basic variable for credit and risk control, thereby lowering the threshold for financial services.

 

Data constitutes the core element of the digital economy and digital transformation. Due to its idiosyncratic qualities, data cannot be subject to the same governance and trading mode of traditional factors. Relevant reform guidelines by the authorities, including the establishment of the State Data Bureau and other institutional arrangements, will facilitate the development of the data factor market, including the possibility of regulating public data and making it accessible in the market.