In the past half of 2021, many key words came into sight:
5g, consumption degradation, data streaking, new retail, AI, Internet of things, cloud computing, compliance supervision, risk control, cutting leeks, blockchain, biometrics, national idle time and financial technology. These words are full of our life and time, and from the overall relationship, they derive a core change, which is integration.
You will find that most words are inseparable from monetary data and technology. And these are linked to financial technology. Help fintech and Internet finance better understand users from many aspects, so that we can more conveniently enjoy the benefits brought by technology and finance. It is very beneficial for us to know about finance, Internet Finance and some wind directions of credit, financial management and investment. In the process of integrating various industries and formats, we are also embracing change, integrating and collecting knowledge, so as to make our knowledge system rich and sound.
In this integration, the trend of mutual funds and traditional financial institutions is very obvious, and more begin to empower each other and make use of each other’s advantages for cooperation. There will be fewer and fewer opportunities parallel to the licensors such as alternative lending in the whole industry, and using technology to improve the efficiency of licensors, deepen a certain industrial chain link, and let the ownership of licenses belong to the technology of license technology will be a new direction. But there will also be new challenges – is the ceiling high enough? Is the bargaining power of the industrial chain strong enough? Is the licensee market-oriented enough?
The most important thing will be the vertical and horizontal integration of mutual gold industry, which will be the biggest theme of the next era. On the one hand, more financial businesses will be separated from the second / third tier Internet giants or highly market-oriented financial licensees for independent development, regardless of business or capital market considerations;
On the other hand, mutual fund companies will also conduct vertical and horizontal integration. A single type of assets will encounter bottlenecks. The integration between different credit assets, the integration between credit and other types of assets, such as insurance, and the integration between assets and funds will all occur. Building an integrated asset management platform will become a trend, and the drivers behind this trend will include mature internet financial companies, PE / VC institutions with leading layout, traditional listed companies with financial ambitions, etc.
Finally, the above two trends to find the best enterprise boundary will meet and collide within the same threshold range, and multiple financial giants with a market value of 10 billion or even 100 billion will be bred here.
All this has just begun. How to quickly enter the field of mutual funds and play the roles of financial product manager, risk control decision maker, credit process designer, financial business data analyst, financial technology product designer and so on. We need to understand some terms and basic concepts first.
Core Keywords: financial technology, risk control, business license, big data, artificial intelligence, bank cooperation, high-quality customer acquisition.
This article integrates some core ideas and public materials. I hope this article can facilitate the retrieval of knowledge and give you some help. The specific product design and project implementation strategy are described in another paper. This article focuses on letting you understand the value of financial technology and the integrated development of Internet finance. Understand the necessary knowledge points and core terms about fintech financial technology.
Concept of financial technology
Fintech is the abbreviation of financial technology, which can be simply understood as finance + technology, but it is not a simple combination of the two. It refers to innovating the products and services provided by the traditional financial industry by using various scientific and technological means to improve efficiency and effectively reduce operating costs. According to the definition of the Financial Stability Board (FSB), financial technology mainly refers to emerging business models, new technology applications, new products and services driven by emerging cutting-edge technologies such as big data, blockchain, cloud computing and artificial intelligence, which have a significant impact on the financial market and the supply of financial services.
Fintech start-ups and new entrants to the financial industry rely on various financial innovation technologies to change the products and services of the traditional financial industry, broaden the customer acquisition channels of traditional financial institutions, improve the operation efficiency of financial service providers and improve their risk management ability. Finance and science and technology have strong iteration, that is, through the development of a large number of fine technologies, we can complete the leapfrog development on the basis of many accumulation. The iteration cycle of financial technology is faster. It is guided by financial demand and supported by scientific and technological innovation. It can complete huge and far-reaching changes in a short time.
Development of financial technology
From the financial technology 1.0 era (policy led and capital supported) from 1993 to 2013 to the financial technology 2.0 era (technology promotes financial innovation and drives policy improvement) from 2013 to 2018, and then to the future financial technology 3.0 era (deep integration of technology and finance to release production capacity).
Key technologies and segments of fintech
Fintech’s key technologies include: Internet technology (Internet, mobile Internet, Internet of things), big data, artificial intelligence, distributed technology (blockchain, Cloud Computing), security technology (biometric technology), etc.
The Internet is a network connecting networks, which can be a collection of any separate physical networks. These networks are connected by a set of general protocols to form a logical single network. This method of connecting computer networks to each other is called “network interconnection”. Mobile Internet is a new thing relative to the Internet. The definition of mobile Internet can be divided into broad sense and narrow sense.
In a broad sense, mobile Internet refers to that users can use mobile terminals such as mobile phones and notebooks to access the Internet through protocols.
Mobile Internet in a narrow sense means that users use mobile terminals to access WAP websites through wireless communication. The Internet of things (IOT) connects all items with the Internet through information sensing devices such as RFID to realize intelligent identification and management.
（2） Big data
Big data technology is a new generation of information technology and service format that collects, stores and correlates a large number of data with scattered sources and diverse formats, so as to discover new knowledge, create new value and enhance new capabilities. The application of big data in the financial field has opened up a new paradigm of financial services, and will play an increasingly important role in customer authentication, precision marketing, financing and credit decision-making, risk prevention, auxiliary quantitative transactions and other fields.
（3） Artificial intelligence
Artificial intelligence is a knowledge about “research and design of intelligent agent”, and “intelligent agent refers to a system that can observe the surrounding environment and take actions to achieve goals”.
Artificial intelligence is applied to consumer finance and related fields in all dimensions. It extracts a large amount of useful information from financial, commercial, social, equipment and other data, feeds back to consumer financial institutions for decision-making after information processing and judgment, and feeds back to users for selection in real time, so as to reduce the information asymmetry and uncertainty of bilateral transactions and drive the intelligent development of consumer finance industry.
（4） Distributed technology
In essence, blockchain is a distributed public ledger, which is jointly responsible for verification, recording and maintenance by participants. It has the characteristics of point-to-point direct exchange value, transaction transparency and tamperability, security and reliability. Blockchain technology helps to reduce transaction and trust risks and reduce the operation cost of financial institutions. It has been used in digital currency, cross-border payment, securities clearing The exploration and application of trade financing and other fields may build a new financial infrastructure and completely change the existing financial ecology.
Cloud computing is a new business form to promote the supply of information technology capabilities on demand and promote the full utilization of information technology and data resources. It is a major change and inevitable trend of information development, conducive to sharing information knowledge and innovation resources, and greatly reduce the innovation and entry threshold of the financial industry.
（5） Security, biometrics
Biometric technology is a technology that uses the inherent physiological characteristics of the human body, such as fingerprint, finger vein, face and iris, as well as behavioral characteristics, such as handwriting, sound and gait, through the close combination of computer and high-tech means such as optics, acoustics, biosensors and biostatistics.
What do newcomers need to learn to enter the Internet financial work circle?
Firstly, we should understand the development status of fintech. Secondly, we need to learn the mathematical basis of financial engineering, financial data mining and application, quantitative financial strategy design, NLP financial application design, Excel data analysis, database modeling, machine learning, overview of Internet finance, etc.
Learning mutual finance and financial technology requires certain basic subject knowledge. For example, basic mathematics, accounting, finance, computer knowledge, probability and statistics, linear algebra, python introductory courses, etc. can be learned in advance.
Of course, if you are a mutual fund product manager, you also need to learn the basic knowledge and demand analysis ability of the product manager.
It looks like a lot, but in fact, you don’t necessarily know all of it, just understand it. The specific requirements of different types of work are different. The peak reduction teacher reminds you not to worry too much. Product design and product R & D are two different knowledge systems. Good study of basic discipline knowledge is the foundation, and the business and post knowledge of the upper level also needs to be supplemented and targeted before work. Students interested in financial product managers can pay attention to my separate course of Internet financial product managers.
What is the difference between financial technology and Internet Finance?
Internet finance needs technical capabilities, especially now the cooperation between mutual finance companies and banks, and we pay more attention to our scientific and technological capabilities.
Therefore, financial technology is a branch and an independent Department of Internet finance. Baidu finance has an independent financial technology department, which is responsible for the output of financial capacity. For example, living body, risk control, AI module, user portrait, etc.
In terms of broad coverage, fintech also includes many professional fields, and there are independent departments involved in mutual fund companies.
Payment and clearing, financing, infrastructure and investment management are the main businesses of fintech.
In addition, financial technology is being applied to almost all aspects of the financial field: lending, wealth management, payment, insurance, crowdfunding, credit investigation, and even retail banks and housing intermediaries. Therefore, Internet finance companies also have many detailed classifications, and many are making comprehensive large platforms, such as JD, Baidu, ant, etc., which slowly include the business forms and business models of various lines of finance.
According to the analysis of Bi intelligence, from the perspective of subdivided fields, it mainly includes:
(1) Retail banks,
(2) Lending and financing (cash lending, consumer finance),
(3) Transactions and payments,
(4) Financial wealth management, investment adviser
(6) Markets and transactions.
Financial technology for financial services can be understood as four aspects: connection, identification, security and data effect, so as to make it possible for financial services to try new possibilities.
The relationship between fintech companies and licensed financial institutions has also undergone great changes. Originally, it is more a relationship of competition than cooperation. However, in recent years, it has become a new partnership of open cooperation and coordinated development.
It can be predicted that with the in-depth understanding of mutual finance and financial technology, more and more financial practitioners and non-financial practitioners begin to pay attention to and transform into this field, explore and cultivate deeply, and will burst out more creativity and new model experiments. Let’s constantly break the rules, constantly learn and reflect, and meet the beautiful and standardized future of Internet finance.