AI morphs into key app for Fintech

Source: Xinhua | 2018-02-01

ARTIFICIAL intelligence has become a “forefront application” that innovates and changes the financial service sector in Shanghai, which then creates market opportunities for startups, industry officials told a forum recently.

An average funding of US$1 billion has been injected into startups that integrate AI with financial services over the last two years. Around 30 percent of large financial institutions including state-owned banks are investing in AI, according to a PWC report.

Chinese technology giants Baidu, Alibaba, Tencent and JD.com, or known collectively as BATJ, and banks like the Industrial and Commercial Bank of China and the Bank of China as well as startups have invested heavily in the integration of AI and financial services, speakers said at the 2018 SAIF MF International Youth Leadership Finance Summit in Shanghai.

But as competition in the Fintech sector becomes increasingly intense, more established companies and fledgling private firms are keen to accelerate the integration of AI and financial services, according to market observers.

Che Pinjue, partner of VC firm Sequoia Capital China, said that startups have more opportunities and space to apply AI applications and attract investments.