Can you spare some AI? Ping An OneConnect says it has the powerful tools to help other banks manage risk
- The virtual bank licence holder is developing a range of technology that can help manage fraud and loan default risks
- Artificial intelligence, blockchain and micro-expression recognition among technologies that can be harnessed
Ping An OneConnect, the financial technology arm of Ping An Insurance which was awarded a virtual bank licence by the Hong Kong Monetary Authority (HKMA) last month, plans to provide the technology to help other financial institutions in the city manage fraud and loan default risks.
Jeffrey Ng, head of fintech solutions at Ping An OneConnect, said technologies such as micro-expression recognition and natural language processing could be used to enhance the customer due diligence process, especially when lenders are struggling with a lack of access to information on clients.
“Professional services are the missing part of Hong Kong’s fintech ecosystem, we are trying to improve the relevant technologies through the fintech services we will be providing,” Ng said on the sidelines of a banking conference in Hong Kong on Tuesday.
Before granting the first batch of virtual banking licences in March, the HKMA issued draft guidelines which specified the need for applicants to focus on services to retail clients and small and medium-sized enterprises.
Ng said Ping An OneConnect would over time be in a position to help other financial institutions with their daily operational needs.
He said natural language processing technology, a form of AI, could be used to help other banks or financial institutions during their loan collection process. For instance, the technology could be used to help automated collection officers monitor the language and tone used by delinquent borrowers.