Bairong Inc. (“Bairong” or “the Company”, 6608.HK), a leading independent AI-powered technology platform in China, has been added to the MSCI China All Shares Small Cap Index, which has been implemented as of the close of May 31, 2022.
MSCI is a leading provider of critical decision support tools and services for the global investment community. It announced the results of the May 2022 Semi-Annual Index Review for the MSCI Equity Indexes, including the MSCI China All Shares Indexes, last month.
Aiming to empower financial services providers in China, Bairong is committed to supporting the digital transformation of China’s financial industry. With smart analytics services and solutions covering the whole business process, Bairong’s client base includes the majority of state-owned banks, regional banks, consumer finance companies and main insurance companies. By the end of the first quarter of 2022, the Company provided services to 5,900 FSP clients in China, including 3,501 paying FSP clients.
To help the financial industry better understand the trend of future financial services in the next decade and the urgency and imperative for digital transformation, Bairong, together with the Outlook Think Tank, recently released “The Second Half of Digitalization: White Paper on Digital Transformation for Banks”.
Opening and converging are becoming the foremost trends for the financial industry in China over the next decade, according to the white paper. After digitalization of services and operations, banks need to further digitalize customers’ demands and provide differentiated services based on accurate understanding of their needs.
As a result, the digital transformation for banks is entering the “opening” stage, which will enable diversified and superior services for customers. For example, banks are opening to offer consumers with daily life services, such as ordering food deliveries, buying movie tickets, and booking travels. For institutions, banks can provide new value-added services, including smart salary calculation, smart office, and smart accounting.
Opening is leading to converging as banks need to deepen the cooperation with partners for opening more services, based on privacy computing to ensure data security. Meanwhile, it is also imperative for banks to converge financial services with more scenarios to cover consumers’ daily lives.
Different types of banks can take different approaches for digital transformation, said the white paper. Large state-owned banks can upgrade their entire ecosystems based on cloud, AI and blockchain technologies. Small and medium-sized banks should focus on regional ecosystem to better serve regional customers. Internet banks can continue to deepen digitalization of services with digital modules.
Targeting key pain points in banks’ digital transformation drive, the white paper also provided suggestions for banks. First, banks should set up clear direction, path and rhythm for digital transformation based on their mission and overall strategy. Secondly, banks should focus on key business areas for digital transformation, including industrial finance, inclusive finance, consumer finance and wealth management. Thirdly, banks should strengthen digital risk management, deepen digital customer relationship and improve digital customer experience.