Ma Zhitao, deputy governor of Weizhong Bank: For the development of blockchain, compliance is the bottom line, and innovation is the way out.

Open Innovation is one of the mainstream concepts of the technology innovation industry in recent years, and the opener has become the innovator behind the technology community. Open Collaboration (Open Collaboration) is to further embrace openness and build a business ecosystem with partners based on technical capabilities such as business and blockchain.

Recently, Ma Zhitao, deputy governor and chief information officer of Weizhong Bank, accepted an exclusive interview with the financial community.

Distributed business sprouts, banks are welcoming new opportunities for development

In recent years, the heat of the blockchain has experienced a roller coaster-like transition. At present, the capital of chasing blockchain has begun to calm down. At the same time, major commercial banks have increasingly applied research and development on blockchain.

The financial world: What role do you think banks will play in the development of blockchain in this context, and what is the prospect of blockchain finance? :

Ma Zhitao : Open Innovation is one of the mainstream concepts in the technology innovation industry in recent years. Openers have become the innovators behind the technology community. Open Collaboration (Open Collaboration) is to further embrace openness and build a business ecosystem with partners based on technical capabilities such as business and blockchain.

Specifically, with the maturity of financial technology, future inter-bank, inter-financial, and inter-industry cooperation is becoming more frequent, which has led to the budding development of a new business model, distributed business . A mature distributed business scenario will have requirements for multi-party holding of production materials, product and service capabilities built by multiple parties, peer-to-peer relationship in business processes, and transparency of product and benefit distribution rules. Under this new business model, banks have also gained new development opportunities.

As is known to all, factors such as licenses, capital, and resources have made the banking industry one of the industries with higher thresholds. Banks have the advantageous capabilities, such as deposit and loan business, clearing settlement services, financial-grade risk control capabilities, and bank account systems. KYC capabilities, etc., no matter which industry is combined, can produce irreplaceable great value. At the same time, the premise of the bank as a credit intermediary is the information intermediary, which has normal, high-frequency and high-quality financial data resources.

Therefore, banks are the most suitable role for the industry in the financial industry to discuss openness with the Internet and industry. If banking institutions actively cooperate with other business participants to provide their own professionalization capabilities, form a complete industrial chain, jointly build an ecosystem, and share costs and benefits, they will also occupy a place in the future competitive landscape.

In the future, through cross-industry collaboration, we believe that banks can better serve the real economy. Take a distributed retail scenario as an example. In itself, retailers compete with each other and complement each other. They can share resources, coordinate development, and realize value exchange through distributed business models, thus forming a business alliance.

For consumers, they can enjoy more merchants' resources through business alliances. For operators, especially small and medium-sized merchants, the threshold for alliances will be greatly reduced, and the resources and channels for customers will be greatly expanded. Banks can just provide financial services, such as clearing and accounting capabilities, and account capabilities.

In this ecosystem, each participant performs his or her own duties, providing services to consumers, and constantly colliding with new business models in collaboration. In addition, the bank's supply chain financial service platform based on blockchain technology serves small and micro enterprise financing, which enables the supply chain to achieve mutual benefits.

For the bank , the channel and the customer can be connected through the supply chain service platform, and the idle credit line can be effectively utilized. After integrating the core enterprise and the supplier information flow at all levels, the business risk can be effectively reduced, and the capacity of the customer can be enhanced and enhanced. Single customer profitability.

For the core enterprise , through this platform to inject liquidity into its receivables or accounts payable, it can provide a more convenient and quick settlement method besides the bill. At the same time, effectively reduce financial costs and increase financial returns, and enhance their participation.

For the chain enterprise , as the supplier of the core enterprise, the most concerned about the quality of accounts receivable and the accounting period, especially in the face of a strong core enterprise, its bargaining power is weaker. The platform provides a new on-demand flexible financing channel for suppliers, while improving the operating experience of suppliers at all levels through pure online operations.

Promote the common governance of alliance members, and the prospect of ecological application of alliance chain is broad

The financial world: In the past few years, the blockchain development, the public chain and the alliance chain have been moving in parallel. You mentioned that the public alliance chain will be the new trend of the blockchain industry in the future. From a professional perspective, can you share the current developments and trends of the current public alliance chain? Especially in the application of the banking system?

Ma Zhitao : The public alliance chain is a coalition chain that provides services to the public. The public as a user of the chain can access the services provided by the alliance chain formed by the business alliance through an open network. The alliance chain has a set of governance mechanisms that are jointly governed by alliance members.

The owner and operator of the alliance chain is the alliance itself, through which information and value exchange are realized. Through the system of the public alliance chain, it is possible to strongly promote the unity of government and enterprise organizations, provide external services, enhance the synergy efficiency between institutions, and enhance the public experience and reduce public costs and risks.

We hope to effectively promote synergy among multiple alliances, build a common alliance chain ecosystem, and realize a new distributed business model. For the application of the alliance chain in the banking system:

First, the use of alliance chain technology to build an inter-agency reconciliation platform , through the establishment of a transparent mutual trust trust mechanism, optimize the reconciliation process, reduce manpower and time costs, and improve the timeliness and accuracy of reconciliation. Through this platform, transaction data can be synchronized in only seconds, and real-time reconciliation on T+0 day is realized.

Second, the three parties jointly developed an arbitration chain based on blockchain technology . With the help of blockchain technology, the arbitral chain will form real-time data to form a chain of evidence through intelligent contracts, satisfying the requirements of authenticity, legitimacy and relevance of evidence, standardizing evidence and trials, and reducing judicial costs.

Blockchain applications should be kept in mind, compliance is the bottom line, innovation is the way out

The financial world: In your opinion, what is the impact of China's current domestic environment (including technology, regulation, government, enterprises, user perception, etc.) on the development of blockchain technology? As for the development of blockchain finance, what needs to be improved in terms of fund management and business compliance?

Ma Zhitao : At present, the Chinese banking industry pays more and more attention to the development of financial technologies such as blockchain technology. Most banks regard it as the development focus and transformation direction, and the market is in a period of rapid development. The core functions of financial technologies such as blockchain technology in these cooperations are often to provide efficient and low-cost infrastructure for traditional banks , and to help banking institutions continuously improve transaction efficiency and reduce costs through technological innovation, thereby enhancing risks on this basis. Management capabilities and asset allocation capabilities.

At the same time, the regulator has guided the right direction. The essence of financial technology is to empower financial business by means of technology. The externality and publicity of the financial industry are comparable to those of other industries. Regulators have always stressed that all financial services should be licensed and should be included in the supervision. The real economy.

As a licensee, banks are more likely to meet regulatory requirements in terms of business innovation. Bank institutions are more familiar with and understand financial business and customer needs than Internet companies. In addition, some banks have gradually explored autonomous and controllable technological development paths. Core system technology also has more practical experience and advantages.

Compliance is the bottom line, innovation is the way out, and the relationship between innovation and prudence should be balanced . Innovation and development must be based on solid internal control management, and fine business control processes and technical support. Internal control management, business processes, and especially scientific and technological information capabilities should be changed with the requirements of innovation and development. The essence of innovative financial technology products is finance, which must follow the laws and rules inherent in banking and finance.

Five key points of blockchain application

The financial world: What preconditions do you think banks need to meet in developing the blockchain? In other words, in the development of the blockchain in the banking industry, what is the focus of the blockchain application?

Ma Zhitao : First of all , in terms of management methods , the incubation of financial technology products such as blockchain is different from traditional banking products. The business scenarios are complex, the cooperation model is innovative, and the cooperative institutions are diversified.

Second , in terms of data security and privacy protection , the development of financial technology often involves the collection and application of big data, which is also likely to bring consumers the risk of personal privacy protection and information leakage. Therefore, when collecting and using big data, banks should pay attention to the protection of data sovereign rights and carry out corresponding desensitization and privacy protection.

Third , in terms of technical security , the application of new technologies has also brought new technical challenges. It is necessary to formulate strict risk prevention and control measures, and combine traditional technical means with new technical means to prevent the technical risks that may arise from the application of new technologies.

Fourth , in terms of scientific and technological manpower , as the scale of banking business further develops, banks must also focus on increasing the number of scientific and technical personnel and ensuring the matching of scientific and technological talents among the staff of the whole bank, and strengthening the introduction of high-tech talents and personnel. Skills training management. At the same time, it is also what we are doing to promote the cooperation between schools and enterprises and to select talents from the university stage.

Fifth , in terms of regulatory cooperation , for financial technology innovation business, banks should also actively provide regulatory agencies with RegTech solutions and supporting means to support innovative business supervision and use new technologies to more effectively address regulatory compliance. The problem is to reduce the risk of compliance; at the same time, further enhance the transparency of the financial technology innovation business to the regulatory authorities and ensure the healthy development of the technology innovation business under good financial supervision.

Open banking background, blockchain helps link efficiency and data privacy protection

The financial world: How much do you think the future banking industry will change due to technology applications? What role does blockchain technology play?

Ma Zhitao : The development of financial technology poses a challenge to the current banking industry. The flow of customers' traffic has changed. The main channels that reach bank customers will gradually shift from offline physical outlets to digital terminals. For banking institutions, the active development of blockchain technology and other financial technologies also bring many benefits:

For example, through the mobile interconnection model, banks can reach more long-tailed groups that could not be covered in the past, thus more effectively covering market gaps, serving the inclusive population and the real economy;

Through technologies such as cloud computing and artificial intelligence, banks can reduce costs, change the cost structure of services, and help achieve the sustainability of developing inclusive finance;

Banks are turning to big data-driven business models, including big data risk control and personalized recommendations, which can further increase the experience and stickiness of their customers. In summary, financial technology can bring the benefits of “ three liters and two falls ” to banks, namely, scale, experience and efficiency increase, and cost and risk are reduced , which in turn stimulates banks to develop financial technology.

The idea of ​​an open bank coincides with this. Through open banks, banks can embed their own products, risk control, technology and other capabilities into the vertical industry, and more directly reach the target customer base. In this process, banking services can be carried on a rich user scene; and partners who lack the financial quality and ability to provide users with financial areas that fit the scene. This invisible makes the bank have the ability to serve long-tailed customers and help inclusive finance. At the same time, risks and challenges have followed.

For example, the connection efficiency of a partner. In the open banking model, banks and partners work together to create value for users, which means that the efficiency of partner connectivity becomes the key to the efficiency of open banks.

The cultural concepts and technical levels of different companies are uneven, and the implementation progress is different when cooperation is carried out. When the number of bank partners increases, connection efficiency is particularly important. In this regard, on the one hand, banks can standardize products in the open process , enabling products to be quickly replicated on a large scale; on the other hand, banks can reduce barriers in the connection process through innovative technologies, such as public alliance chain technology , to help enterprises One-click deployment to improve the efficiency of the connection process.

Another example is the privacy protection of data. Data federation is the foundation of open banking operations and its value. With the introduction of the EU GDPR, data privacy issues have once again received attention. Bank data is more sensitive than other industries, and therefore requires more stringent privacy protection.

For example, blockchain technology has the characteristics of non-tamperable, data encryption, etc., which makes it have certain advantages in the field of privacy protection. Many enterprises have also tried the application of blockchain in the field of privacy protection, hoping to use the blockchain. The technology builds a data transmission and exchange system that allows participating parties to share data under user authorization to ensure that user privacy is not arbitrarily disclosed. This article Source: Financial sector original title: "Ma Zhitao: Distributed business sprouts, banks ushered in new opportunities for development"