The large model is bringing new solutions to the working capital management of small and micro enterprises.
On September 6, at the 2024 Inclusion • Bund Conference Bank Wealth Management Fintech Forum, MYbank released the first intelligent inclusive wealth management system for small and micro enterprises and merchants, the "Cuckoo" system.
It is reported that MYbank's "Cuckoo" uses an AI model to predict the capital flow of small and micro enterprises in thousands of industries, so as to provide bank wealth management companies with predictions of redemption and redemption, and jointly customize bank wealth management products that fit the business cycle of small and micro enterprises.
[MYbank President Feng Liang released the "cuckoo" system at the Bund conference]
Statistics show that there are 124 million individual industrial and commercial households and 52 million small, medium and micro enterprises in the country, but the financial needs of this group have not been fully met. McKinsey predicts that small and micro operators will become one of the most potential customers for bank wealth management, and the scale of the bank wealth management market will usher in leapfrog growth.
Bank wealth management has become the most suitable category for small and micro wealth management
Feng Liang, president of MYbank, said that there are a large number of small and micro operators, but their liquidity and financial management have been in a state of "no one cares" and "it is difficult to manage" for a long time, which is a "blank area" for financial services.
The pain point of small and micro financial management is the lack of institutions that specifically serve them and products that are customized for them. The business cycle of small and micro businesses is complex, the capital fluctuates greatly, the liquidity is high, the asset management services of large enterprises are "unaffordable", and the wealth management products for individuals are "not easy to use".
Feng Liang believes that the management of small and micro liquidity needs to meet three requirements: first, the safety of funds, and there can be no large losses; Second, it fits the liquidity of the business cycle and can be withdrawn when the money is used; The third is the stability of income. In his view, bank wealth management is rich in terms, small fluctuations, and stable returns, which is the most suitable investment category for small and micro enterprises, so this is also the direction of the "cuckoo" system of MYbank.
As the "ballast stone" in the field of asset management, bank wealth management has a broad market space. According to statistics, among the mainstream asset management products, the number of fund users exceeds 700 million, and the number of stock market investors has also reached 220 million, but the number of bank wealth management users is only 120 million.
At the Bund Conference, McKinsey predicted that by 2030, the size of the bank wealth management market is expected to reach 50 trillion, and the number of users will increase to 200 million. In addition, small and micro operators will become one of the most potential customers for bank wealth management, and the market size is expected to double by 2030.
Small and micro financial management ushered in the "auspicious three treasures"
"The goal of the cuckoo system is to become a working capital financial expert for small and micro enterprises." According to Feng Liang, the cuckoo system provides small and micro businesses with special financial products such as Yu Libao, Wenli Bao, and Yue Libao.
Yu Libao is a "coin purse that earns while receiving", serving the money that Xiaowei needs to use at any time. It has three special functions, one is that Alipay collection can be automatically transferred; Second, there is also income from night deposits, and more than 4 percent of users buy Yu Libao at 15:00~24:00; Third, it can be paid directly and quickly when purchasing and purchasing. At present, Yu Libao has served more than 40 million small and micro users.
Wenlibao is a newly launched bank wealth management "store" of MYbank, which serves small and micro money that is not used in the short term. Wenlibao selects products with different maturities such as 7 days and 30 days to meet the financial needs of small and micro enterprises in different cycles. For example, dealers of consumer goods with obvious off-peak seasons prefer 30-day and 60-day wealth management products after receiving payments in peak seasons.
Yuelibao is a piggy bank of "zero deposit and lump sum withdrawal", which serves the money that small and micro need to use regularly every month. Small and micro enterprises receive small amounts of high-frequency, and their expenditures are relatively fixed, such as paying wages in the middle of the month and paying for goods at the end of the month. Monthly Liberty meets the needs of small and micro enterprises, supports daily purchase, and redeems on a fixed date every month.
In addition, MYbank has leveraged the advantages of digital banking to deeply integrate the "Three Treasures" with the business scenarios of small and micro enterprises. Merchants operating on Taobao, Tmall, Alipay and other platforms can use one account of MYbank to collect money, so as to manage their finances conveniently. In addition, merchants can purchase goods in 1688, and marketing and recharge on platforms such as Douyin and Alimama can use MYbank to pay quickly, with instant arrival and zero handling fees.
AI large-scale model application, small and micro financial management towards "exclusive customization"
Supporting the innovation of the cuckoo system is the application of artificial intelligence technologies such as AI large models.
The most difficult "bone" in small and micro working capital wealth management is to make wealth management products fit the business cycle of small and micro enterprises. If a wealth management company is compared to a crew, if the crew can predict the height of the wind and waves and the speed of the current, they will be able to steer better. In the past, this relied on the experience of the crew, but now, AI can help the crew predict.
It is reported that in the cuckoo system, the application of large models mainly includes two aspects:
On the one hand, "Cuckoo" builds a large model for predicting the flow of small and micro funds through the first time series encoder, forming a prediction of the capital flow of different groups such as e-commerce, code merchants, distributors, and farmers, with an accuracy rate of more than 95%.
On the other hand, Cuckoo builds a product volume and price model based on the prediction of small and micro capital flows, and predicts the future subscription and redemption amount of wealth management products. According to the forecast results, the bank's wealth management subsidiary can improve the capital utilization efficiency by 10%, thereby improving the product revenue experience.
CNCBI Wealth Management is one of the first partners of the Cuckoo System. It is reported that the end of the month and the end of the quarter are generally the relative peak period for the redemption volume of wealth management products. Based on experience, during the relatively peak redemption period, CNCBI Wealth Management usually conducts a 20% liquidity arrangement for highly liquid products. In July this year, the cuckoo system accurately predicted the redemption of a product, and CNCBI Wealth Management conducted a prudent analysis of the product, and after a comprehensive evaluation, reduced the liquidity provision to less than 10%, and flexibly adjusted the leverage ratio and asset allocation accordingly. In the case of the decline in the overall interest rate of the industry, the yield of this product has increased by 2-3bp.
Ping An Wealth Management is one of MYbank's largest partners in the cuckoo system. According to the changes in the flow of small and micro funds, the cuckoo found the law of small and micro funds: there are fragmentary collections every day, but the wages of employees are fixed around the 10th of each month, and the payment and rent, water and electricity are settled around the 20th. Based on this, Ping An Wealth Management analyzed through the data cube system and designed a series of monthly Libao products that meet the application and redemption habits of small and micro customers. It is reported that the popularity of the monthly Libao series products exceeded expectations, with 60 days of online launch and a subscription volume of more than 6 billion yuan.
Up to now, MYbank has reached consignment sales cooperation with 23 wealth management subsidiaries of banks, and the consignment scale ranks first in the industry. Among them, 5 wealth management subsidiaries of banks have in-depth cooperation with Cuckoo to jointly help optimize the experience of 7 exclusive wealth management products for small and micro merchants.
Feng Liang said that MYbank has served 53 million small and micro operators in the past, so he hopes to use his understanding of the needs and capital flow of small and micro enterprises, combined with AI technology capabilities, and the convenience of digital banking, to create a new intelligent financial management experience for small and micro groups and serve the development of the real economy.