Utilizing artificial intelligence in personal finance in China
2020 Volume 7 Pages 25-46
Details
2020 Volume 7 Pages 25-46
Artificial intelligence is expected to be important driver of future innovation in many industries,but the use of big data is a prerequisite for its success. The reason why it is possible to develop creditbusiness using artificial intelligence in China is that it effectively uses a huge amount of data that cannotbe compared with Japan.
Alibaba Group, a leader in China's FinTech industry, is drawing attention for its efforts in the field of personal finance utilizing the big data. Alibaba Group's ability to utilize big data is largely due to its ability to collect and link vast amounts of data in Alibaba's e-commerce and its platforms.
China's advanced FinTech ecosystem in the field of personal finance captures not only electronic payment information, but also personal data in logistics and commercial distribution, such as various digital footprints and transaction histories of users. They use artificial intelligence to evaluate credit in real time and use the scoring for lending and various non-financial services.
In addition to the interests of latecomers who do not have legacy systems, Chinese IT companies have the potential to take advantage of the world's largest big data usage environment to upgrade retail financial services to the world's most advanced level.
