Tongdun Technology Enters PwC’s China Fintech Survey 2018
In recent years, benefiting from technological advancements, China’s financial service industry has been transforming from “IT + finance” of Era 1.0 and “Internet + finance” of Era 2.0 to Era 3.0 featured by “smart finance”. This process has seen steady improvement in efficiency and quality of financial services. Along this journey, new competitors entered, existing industry landscape was challenged and comprehensive collaboration was reached between traditional financial institutions and fintech companies. In the meantime, fintech companies have expanded their presence from gaining customers at front office to product design, risk management, compliance and every other aspect at middle and back offices.
China’s fintech industry has already gained a world leading position in many aspects, for this reason, PwC conducted the first fintech survey in China in 2017. To continuously tracking China's fintech development, PwC carried out its follow-up survey in the second quarter of 2018 and released China Fintech Survey 2018. From an objective point of view, it describes the industry’s development situation and elaborates on the challenges and opportunities faced by business insiders. It is the hope that the report will tell the development story of China’s fintech industry to the global market and provide an insight reference for international counterparts.
The report describes the development characteristics of fintech industry in China from six dimensions: strategic and business model, development trends of each industry segment, investment and financing activities, technological development and application, talents and incentive mechanism, and regulation and compliance.
In the “technological development and application” section, the report focuses on the analysis of a company that representing how technology helps improve financial services – Tongdun Technology.
According to the report, compared with the past, the industry has shown higher expectations for regulatory risk, process improvement and internal control centers, indicating that financial industry has gained stronger confidence and understanding of big data technologies. Tongdun Technology is a professional third-party smart risk management service provider that has been facilitating customers of varied industries with decision-making services based on smart risk management and analysis. In the financial industry, Tongdun Technology’s smart risk management system applies multiple risk identification technologies and models and is enabled by multiple technologies including device fingerprints, biometric identification and geolocation technology, etc. It provides flexible risk models that are based on the differences between user data and selected risk indicators and function well in various anti-fraud scenarios. In automobile finance, Tongdun Technology applies anti-fraud identification, credit assessment, Social Link Analysis and other technologies in every link of car loan applications and transactions. It issues proactive early-warnings once suspicious trades are detected and thus forms a closed circle to handle risks. In this process, Tongdun Technology’s smart risk management system carries out real-time analysis of financial transactions on the platform. It achieves precision risk management of real-time transactions by expanding data dimension provided by traditional risk management.
Fintech enables customers to enjoy services anytime and anywhere. It has also perfectly integrated such services with other online activities to enable multi-scenario and all-around interaction, which significantly improves user experience. We can say that technology has injected great power to financial services. This kind of convenience brought forward by technologies, however, has to some extent magnified financial risks. Risks are accumulating and spreading faster and bringing greater damages. While promoting innovations of business model, the advancement of technology may also cause systematic risks of the financial industry to evolve. During the last decade, cybersecurity and data protection have become the most urgent demands of fintech industry; looking ahead, key financial infrastructure suppliers holding emerging technologies will become one of the sources of new systematic risks of the financial industry. Last year, Tongdun Technology announced the “Analysis as a Service” concept (AaaS), which adopts artificial intelligence tools and big data technologies to enable data analysis in various segmented financial scenarios, including credit risk, transaction fraud, cheating in marketing, customer value, investment and operation, to customers of different industries such as finance, Internet, insurance and new retail. In other words, it provides scenario-based smart analysis service by employing the dual engines of AI + big data.
As of today, Tongdun Technology has provided services to more than 10,000 enterprise customers, identified frauds of 4 billion nodes (entity) and 12 billion parties (relationship). It updates 37 million nodes in average each day and has identified 2.5 million suspicious fraud groups of up to 46 million members. It provides more than 200 banks with smart risk management and analysis-based decision-making service, which increased the cost of fraud and built “fences” for its bank customers. Now we can get an intuitive understanding of these achievements: Tongdun Technology has helped a bank reduce junk credit card accounts from 40% to 2%, fault user accounts from 20% to 3%.
Tongdun Technology is committed to focusing on the three fundamental product categories of “anti-fraud”, “credit risk management” and “user growth” services. Placing customer value at the center, it has deployed an end-to-cloud integrated service landscape. It has successfully conducted benchmarking cooperation in every market segment, which are of certain inspiring and referential significance for the whole industry. This may be one of the reasons why PwC recognized Tongdun Technology as an important survey subject.
No need to brag, butterflies know where sweet flowers are. Tongdun Technology was awarded China Fintech Top 50 by KPMG, Technology Fast 50 of China by Deloitte and China's Most Promising Companies by EY. Now, Tongdun Technology has been fully acknowledged as an outstanding representative in the smart risk management industry by all the four most prestigious accounting firms in the world.