The independent development of its own brand credit business has become an unavoidable "compulsory course" for licensed Financial Institution Groups.

Behind the digital transformation of finance, there are two "invisible forces" driving – momentum and pressure.

The driving force is mainly reflected in the fact that some licensed Financial Institution Groups that started first have enjoyed the value benefits brought by digital transformation. The pressure is mainly reflected in the intensive implementation of domestic financial regulatory policies in the past two years, which have put forward higher compliance requirements for the risk control ability, operation ability, system construction ability and data governance ability of licensed Financial Institution Groups, and promoted the "Matthew effect" of the industry.

"Ronghui Jinke’s mission is to help the licensed Financial Institution Group build an independent and controllable Internet credit risk control system." Si Mingcheng, general manager of Ronghui Jinke Platform Product Division and CRO of Personal Credit Business Division, told Yiou that this goal has never changed in the past five years. Now Ronghui Jinke has successfully helped many banks, gold and other top licensed Financial Institution Groups to complete the construction and iteration of risk management systems. The company’s reputation and customer reputation have always remained at the forefront of the industry.

Si Mingcheng graduated from Cass Business School in London and obtained a master’s degree in actuarial science. Previously, he worked in Baidu Finance and Zhongrong Life Insurance, and has rich practical experience in the construction of Internet financial risk management system and risk control system platform development. In our conversation with him, we found that in today’s diverse financial risk control needs and homogeneous solutions, the risk control system platform products he led the team to carefully build, the technical innovation and service concepts behind them are of great reference.

Hard core product innovation, deeply empower customer business value

"Based on past experience, we hope to help the Licensed Financial Institutions Group fully grasp the direction and requirements of digital transformation under the new supervision."

Si Mingcheng mentioned that Ronghui Jinke started the development of risk control system platform products when it launched the auxiliary operation business at the beginning of its establishment.

So far, Ronghui Jinke risk control system platform has formed a more comprehensive product matrix, including credit index management platform, asset quality monitoring platform, model monitoring management platform, data management platform, etc., deeply empowering the licensed Financial Institution Group to conduct multi-dimensional management of strategic models, information data, business monitoring, implementation processes, operational risks, etc. in all aspects of credit business, and comprehensively strengthen the management of self-operated business refinement and automation.

According to Si Mingcheng, the credit index management platform includes the whole process solution of PBC report analysis, core variable derivation, and variable management, which can help partners quickly derive six modules, ten categories, and tens of thousands of variables with business meaning. It has the characteristics of high differentiation, clear logic, and full utilization of information; at the same time, it also supports flexible configuration and management of variables, and the integrated processing variables of flow and batch fully ensure that the derived variables play an efficient value in risk control strategies and model applications.

(Some functional modules of the credit index management platform)

At the same time, in order to effectively deal with the unpredictable risks in the rapid development of business, the asset quality monitoring platform and the model monitoring management platform are respectively for the licensed Financial Institution Group in the form of consulting services + platform landing. The former helps partners to achieve real-time monitoring and early warning of the whole process of asset quality and business indicators, which can greatly save human resources costs, effectively reduce the non-performing rate, and ensure the quality of credit assets.

The latter is aimed at the full life cycle management of the model, that is, through automated real-time calculation and monitoring data, to achieve full-link monitoring of the model, to ensure the stability and effectiveness of the model, and to have configuration display and early warning functions, to strengthen the model of the licensed Financial Institution Group.

In the past two years, regulators have continued to encourage banks to strengthen their self-operated business and independent risk control capabilities, and many media have repeatedly reported the independent risk control problems of small and medium-sized banks. Si Mingcheng believes that banks and non-bank licensed Financial Institution Groups build their own risk control systems, which not only require a lot of resources and labor costs, but are expected to take five to ten years or even longer to complete.

Some industry experts stress that banking institutions must "grow" these capabilities from their own soil, rather than relying on ready-made solutions. Ronghui Jinke’s system platform product positioning coincides with this idea, that is, in a deeply empowered, white-box delivery model, the services provided are fully open to partners, helping them gradually build their own professional risk control team and independent risk management capabilities.

"In the depth of cooperation with many customers, we not only implement and deliver system platform products, but also provide a complete set of risk control solutions and actual business operation solutions, with equal emphasis on" fish "and" fishing "to maximize the value of the products themselves, so as to help cooperative customers to expand their business scale." Si Mingcheng revealed that under such a model and concept, Ronghui Jinke has started to standardize the output of risk control system platform products since the end of 2019. At present, nearly 20 leading banks, gold and other licensed Financial Institution Group system platform product benchmarking projects have been completed. Among them, the credit index management platform solution capability has reached the top three in the industry.

In addition, Si Mingcheng also pointed out that some licensed Financial Institution Groups such as banks have successively done some digital risk control construction, but they are often "chimney buildings", and system platform products can help the original "buildings" become a solid "foundation", helping institutions to promote their decision-making system from "blank filling of data elements" to "value-driven capability enhancement" on the basis of compliance.

Yiou learned that the credit index management platform implemented by Ronghui Jinke last year for many banks, licensed gold consumption, etc., helped banks and other banks to expand the derivative variable library at one time, greatly improved the efficiency of risk control model and strategy development, and helped banks and other banks to complete the construction and iteration of digital independent risk control "more quickly and cost-effectively".

Specifically, on the one hand, the platform provides a multi-dimensional and multi-level high-quality index library to help banks fully mine the effective information in credit reports and three-party data, and also provides a unified index management capability for the whole bank to achieve variable "one-time configuration management, all-bank shared application"; on the other hand, the platform supports variable efficient processing, and realizes front-end parameterization to configure variables and go online with one click.

"The entire project implementation cycle was very short, and the localization of the system was completed within a week, which greatly shortened the launch cycle of the platform application. Because of the smooth implementation of the first phase of the project, many customers have cooperated with us in the second phase to further help the industry improve the index processing capacity." Si Mingcheng recalled.

What makes Ronghui system platform products "stand out"

What really distinguishes Ronghui Jinke system platform products from the same type of products on the market is not just the product innovation.

Si Mingcheng said that Ronghui Jinke’s own deep "Party A advantages", unique "compound genes" and rich financial risk control "combat experience" provide a lot of first-mover advantages for system platform products.

On the one hand, Ronghui Jinke’s management and expert team have very rich experience in risk management and practical operation at home and abroad, and have practical experience in risk control system from zero to one, including product and system construction. At present, the risk control system platform products designed by Ronghui Jinke have undergone theoretical and practical two-factor authentication, which can well meet the actual needs of customers, achieve plug and play, and quickly solve business pain points.

In addition to that, the system platform product design follows a flexible and light-coupled approach, which can not only fully support the whole process of business operations, but also be modularized and configured according to customer needs, making it easy and convenient to connect with the customer’s own system and go online.

At the same time, the construction of the risk control system involves the overall planning of the digital transformation of the licensed Financial Institution Group. "We cooperate with our customers not only on the construction of risk control systems, but also in marketing customer acquisition, risk consulting and data management. Ronghui Jinke has mature and complete digital solutions and risk consulting solutions."

As mentioned above, compared with a single digital risk control solution output, Ronghui Jinke system platform products come with "supporting facilities", bringing Ronghui Jinke’s technological capabilities and profound accumulation in Internet credit business to the licensed Financial Institution Group, and also allowing the risk control system of the licensed Financial Institution Group to "take root and thrive" on its own soil.

On the other hand, Ronghui Jinke also has a product and technical team with strong combat effectiveness and in-depth customer concept, which can not only fully ensure product quality and customer experience, but also respond quickly to customer needs, solve and feedback customer problems in the first time, and ensure the stable operation of the business.

"For the platform products used in online risk control business, the processing performance of the system is also very important to customers." Siming Cheng revealed that, for example, the credit index management platform, we pay great attention to the scalability of variables from the source variable design. In the underlying technology implementation, the application of flexible parameter configuration method can complete the processing of ten thousand dimensional variables in about 100 milliseconds, which can meet the variable processing of hundreds of thousands of incoming parts every day. In terms of performance, it has been recognized by all cooperative customers.

Conclusion

"As the direction of supervision becomes clearer and clearer, from the current digital transformation of the industry, there is still a way to go for the Internet retail credit business of the Licensed Financial Institution Group to be transformed into self-operated business and independent risk control." In Si Mingcheng’s view, in the new situation of financial technology, risk management is more refined, and the Licensed Financial Institution Group, which has a complete, professional and systematic risk control system, will surely go more stable and faster in the fierce and healthy competition environment.

"Facing the future, what we need to do is to transform technological capabilities into core products and services, and deeply empower the licensed Financial Institution Group to complete the digital transformation. These capabilities are also a solid foundation to ensure the sustainable, healthy and compliance development of Ronghui Jinke’s business."

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