CEO of China Merchants Bank MA: The crisis caused by big data to banks

November 4, 2012, 2012 China Management Mode Outstanding award ceremony was held in Shanghai. Sina Finance and Text report this activity. The picture is MA, CEO of China Merchants Bank Limited, executive director.

MA: First of all, congratulations to all the winners, and very pleased to be able to participate in such a very fashionable and urgent assembly. So many people to attend to show that we are sensitive to the cloud era, we are a layman of cloud technology, but the concept of cloud era, but it is not too unfamiliar. For there is no doubt that the arrival of such an era, a time he will inevitably affect the people's way of life, production, and thus inevitably on the services such as banks have an impact. So in a sense he will decide his survival and development. So the understanding and understanding of this problem is not snub. We just ended up with a full line of executive training, the big data and the cloud, the big data and the cloud age, and we brought the big data authors from the US to tell us what the big data age brought, especially for commercial banks.

I want to talk to you today about two issues, one is the cloud era, or the big Data age, the business model may be affected by what impact. The second is the crisis faced by commercial banks. Now everyone is worried that the world economy, especially Europe's debt, should be said to be protracted. The difference between the European debt crisis and the subprime crisis is that the European debt crisis is the government's balance sheet has been a problem, and the government balance sheet problem, while the economic development, while the fiscal revenue, on the one hand is spending, is now more in the compression of the deficit, reduce welfare problems, so caused a series of impact, Some social contradictions are difficult to solve. I think we should see more of the balance sheet on the other side, the economic development, in fact, in the global economic crisis, the only way to get the world out of the crisis is the technological revolution.

The three major technological revolutions in history, known as the 18th century steam engine, make production a mass. The 19th century electricity changed the business model. The birth of the first computer in 1937, one until now into the age of the dead one computer, the computer from mainframe PC, later to the internet, mobile Internet, no doubt brought us into an era of information, I think listen to this large data of the author said that now the data is explosive growth, 2010 Global enterprises stored more than a year of data on the concept of 7000pd,pd you know, enterprises so much, the equivalent of more than 10 U.S. National Library Collection volume, using this to do the calculation unit comparison image. Global consumption of one year of storage, is 6000PD a year, there is no doubt that countless data collected by the exchange is analyzed and used, the data like a torrent of injected into the world economy, so I think there is no doubt that the economy has a growing impact. So I think he will impact our existing business model, so I understand a few aspects of the initial understanding, first of all, I think from cloud computing, cloud computing He will change it's operational architecture and efficiency. My understanding of cloud computing is the separation of IT resources from ownership and access to use. We now have it in every enterprise, there are computers, there are a lot of people to do this thing, have to have data center, the world has 750多万个 data center, I think is like every unit has a boiler, heating, cloud computing I think is central heating, is the boiler to cancel central heating. In fact, as a business, we worry about the expansion of data every day. We built a building, recruit a group of people, but in fact, we calculate, each computing center resource occupancy is very low, also 15%. Because you have to calculate the maximum demand when your facilities, in fact, not so big every year, are so large traffic, but this time there are a lot of resources idle. Some people say that if the technology of heating with cloud computing can reduce the cost of at least 1/3. The US government decided in 2010 to eliminate 800 data centers, which could reduce at least 5 billion by cloud computing. The second cloud computing platform can bring tremendous energy to the industry's aggregation and synergy. I just said that from mainframe to PC to the Internet this process is a long time, a long time will be combined. But the two concepts are not the same, the era of cloud computing is geographically dispersed, but once there is a need for cloud computing, the platform can be quickly aggregated. I think the coordination between resource subjects is very high in the era of cloud computing. National day I went to Apple, and Apple executives talk for a long time, I think he is very successful, his great success is aggregation. He has a platform like the App Store, efficiently aggregating the vast number of developers, content providers and end consumers to build a very large industrial ecosystem, so he will quickly understand the market and understand the trend.

Third, in the cloud era, every enterprise can be a champion. A few years ago Friedman wrote "The World is flat," which means that era has pushed the world flat. The globalization of the Internet has flattened the world, and cloud computing has made the world smaller. He can let each enterprise have numerous interfaces, and these interfaces in the cloud open, unlimited expansion. can help enterprises to gather all the requirements, including order information to the supply of raw materials, and then to the logistics platform and end consumption. You can all find the resources to support you. So for a business with a real kernel, you don't need to be aware of the world's movements, and the world is watching you every day. So a super company will become very simple, unified, this kind of debris cloud can be integrated. I said a business from the birth, you may be a multinational enterprise, so the relevance of the enterprise is very high.

Fourth, I think the cloud computing and the big Data era, so that between enterprises, I think the gap between competition is getting smaller. Is that you get the advantage and the time to lose the advantage is getting bigger. This requires enterprises to become increasingly competitive. Must redouble their own innovation. So I feel very deep, now there is this trend, is in the cloud computing era, the era of large data, in fact, the performance of any commodity, the exhibition is now in front of consumers. Cloud computing can be very sensitive to the needs of the society and to the design of the product that satisfies it. The people before buying have already understood the advantage and disadvantage of this kind of commodity clearly, already understood his stock, the manufacturer's plan. So we are now using consumer ignorance, or the use of star inducement to sell goods. Monopoly resources, monopoly sales channels, even your location is not very important, these poor distribution is getting smaller. So in this era, everything is called the product itself to dismantle.

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Big Data cloud era will be a new impetus for businesses to create value. Into the cloud era, cloud computing, the Internet, things networking, social networking, they should be interactive evolution, for our information carrier to promote the explosive growth. International Data Corp. He said the world's data will grow at a rate of 40% a year in the next decade, reaching 35 in 2020. So this massive growth actually makes us feel that the data he has become a part of business value. I recently found that Google's data analysis, to each user, his users are we advertise these enterprises, for us to tick a digital inspection eye, is to provide you with accurate advertising, advertising objects can screen out, see what kind of advertising can impress him. So a lot of companies, small credit companies use some of his "everyone loans" without banks, direct supply direct demand can go to control, everyone loans, so the data I think he will become like fixed assets such a resource, and human resources like a means of production. So in a sense, the competitiveness of enterprises also decided in the era of cloud era, the big data age. It is not labor productivity, but the productive power of knowledge, or the competition of information. This is to see that many countries are actively deploying this large data cloud response, the United States should be the forerunner. It is expected that by 2020, US cloud computing will reach 30% to 50% of its total it output, and we are seeing a base of global cloud computing in China, like Microsoft, HP, IBM and Oracle. The EU is also considering getting out of the crisis through technological change. With the exception of new energy sources, new energy is now not seeing much of a scene, and they see cloud computing as an important point out of the crisis, expecting 2015 to create 200多万个 high-quality jobs. Including Sweden, 28% of corporate public institutions have used cloud computing. Many countries, including Singapore, are building, we say that intelligent Earth, now smart companies, by 2015, the world has cloud computing cloud market size will be more than nearly 200 billion U.S. dollars. This number may be some material judgment, but we feel it will come faster than this. We are now in this big environment, the Chinese economy is also slowing down. China's economy has been growing at a high rate over the past 30 years, and the rapid growth of the external environment is now very convenient. How does the Chinese government propose to change the way China's economy grows? My understanding and important point is to improve the economic growth, economic development system, improve the technical content of economic development. In the past, we had a lower labor force, and exports have also been a very large reversal, so I think the development of new industries, improve the technical content of economic growth, this is the essence of transformation. We think that in the 10 years after the last century, each was through the Silicon Valley, to give a large number of innovative High-tech small enterprises, small micro-enterprises, risk capital, but also including the bank's risk credit, so that these enterprises become the United States and even the world's attention to the big enterprises. Like Microsoft, Google, Yahoo. So I thoughtCountries should do more to support these innovative small businesses and micro-enterprises. China's cloud computing is also a great opportunity for China, we have several conditions, the first China's internet users, is the world's largest. We have the world's largest PC and smartphone users, 430 million last year and 700 million next year. The second is that China has the largest number of small and medium-sized enterprises in the world, and I feel that China's SMEs are a powerful force for the steady growth of China's economy. And these small and medium-sized enterprises, once the demand for cloud computing, then our Chinese economy really achieved high-end transformation, that is, the technology content increased. So we also believe that China's largest cloud computing market, cloud computing is the Chinese economy is the direction and momentum of the real transformation.

The second one I want to talk about is the crisis that cloud computing or big data brings to banks. The bank from the attribute I think there is the attribute of it, because the bank's two major functions, one is to use the intermediary, one is to pay the platform, whether it is to use the intermediary or pay the platform to rely on it to support, so information technology for banks, I often say he is water and air. Throughout history, the development of banks has been accompanied by the development of IT information technology. We have seen the "Qiao courtyard" that time of the bill, the transfer of bills is very slow by the carriage, and then have a telephone telegram a big step forward. When I was working at the central bank more than 10 years ago, there was an uncertain number of central bank balance sheets, we call it "big other", this is the bank of the client's money for free, because you from the city to go to that level, the middle of a long time, up to dozens of days, so this money is not interest. Into the internet age, this thing is solved, so in a sense, the development of the Bank and the development of the service is decided by the process of it.

In addition it has changed social life to change the needs of the people, the needs of the people also include the demand for finance. If there is no internet developed, no one can ask the bank a zero-bad demand. If there is no internet, there will be no personalized tailored needs, so there is more and more demand for Internet services. Banks are also relying on the Internet to address these needs, so they have pushed the financial services industry forward. So in a sense, the bank is also the attribute of it, so to the cloud era, to the big data era, will undoubtedly determine the fate of the bank. There are a few things that have been stressful and annoying lately. The traditional bank two big business, one is the domestic helper capital, the second is the settlement payment, this platform is gives the social settlement to build the platform. Because the exchange of all goods is a bank settlement, in the past is the bank eminence, but since the 80 's IT enterprises began to be snooping on this business, because since it is carried out by my it, I can do it myself, the first is Bill Gates, he in 80 design a software, said I can directly for customers to settle, not the bank. So American bankers are running around, persuading the government that the government has left a path for the banks, that there should be a division of labor, that everyone should have food, and that the banking industry cannot do it, right. The legislative provisions cannot be done, but this is not the end of the matter. Then there were Sony, and I think China's telecoms operators were thinking about it. One of the biggest changes is third-party payments. This has to admit that he is the result of social progress, light banks can not meet, many huge small payments, must be completed as soon as possible. In order to adapt to this third party payment, the annual growth of 100%, now quickly 4 trillion of this is the bank capital "off the media" outside of the technical stripping.

There is another, although not come, but feel very threatening, this is the Facebook, Chronicle. They have a lot of clients, a supply of money, there is a need for funds, if the search engine can be more money or lack of orderly arrangement of funds, and then through the cloud computing and system, you can determine the number of risk pricing between them, people each hand has a mobile intelligent terminal, so completely can two people fall in love, You can finish without introducing yourself. From this we can judge, in history, to the present, there are two models, a call indirect hot money model, a direct hot money model, that is, stock exchanges, bond markets, with a chronicle after the representative, there may be a third form, this is the Internet capital, will bring survival and development of the bank challenges, This is the ideal realm. But there is no doubt that it is a reality, and comes soon. I find it challenging not only the banks but also the stock exchanges. And why? Because some people suggest that you don't have to go on the stock exchange, you can go public on the social network, and a lot of your more than 800 million customers will buy your stock. Now it's called refinancing, which has actually happened in the real world, and the Internet is raising these funds. So there is no doubt that banks face existential challenges. But the challenge often also gives you the opportunity to have a challenge without opportunity, the bank is like Bill Gates said, your traditional banks, if not changed, you are the 21st century extinction of the dinosaurs. I was at that time by Bill Gates is very stimulating me, I was just to China Merchants Bank, at that time, China Merchants Bank is very small. But I saw him give me this challenge, but also the opportunity. Because the Internet is a new business at the end of last century, in front of the Internet no matter is big bank, small bank, new bank everybody is equal. is a starting line, this starting line as long as the grasp, not only can shorten the gap and can surpass each other. Because everyone is new to the Internet. Today we have the same as cloud computing, and for almost a few years, it's new, depending on how you perceive and act on new things. We were using Internet technology. Boldly put forward to engage in retail, retail outlets to set up, we were only more than 100 outlets, there is no customer. So they think we were whimsical, now make our fantasy into reality is the Internet, a card, through the Internet technology to the passbook can be turned into a variety of functions of the bank card, we have 600.07 billion people who say that someone has 10,000 of the deposit is 700 billion-800 billion, Laid the foundation of retail. And this Internet commercial Bank we are the first in China to launch, the last century 99 years, the current online replacement rate of nearly 90%, we have less than 1000 outlets, for the big banks are rare. But our channel sales capacity is almost the same as that of the big banks, and we have won the best commercial Bank of China at home and abroad. So think of this as a challenge to you and also bring you opportunities, now the Bank of China (The new challenge for 2.78,-0.01,-0.36% is cloud computing and big data, a challenge that also brings us a lot of opportunities. For example, a bank must have customers. In the era of cloud computing, how quickly you understand the needs, they speak of the need to understand, just now I said, because into the big data era, the information should be fair and transparent, completely through data analysis, understand different customers, different needs, can be completely accurate marketing, greatly reduce costs. It is a very good opportunity to study the next product early supply according to his changing rule of demand.

One more thing is to improve management, the theme of our forum, and what we have been doing over the years is how we can improve the management of our business in an era of changing information technology. I think that this cloud computing and large data, the management of the enterprise has brought great impact. To be honest, although our Chinese banking industry has not suffered any losses in the global financial crisis, the world's banking industry is almost always in front of China's big banks. But to be honest, there is a big gap between our level of management and that of the West. The financial crisis we suffer less, not our management ability is not strong or our level of risk prevention, but you do not swim in the sea you can not be flooded, because your degree of internationalization is still very low. So it is imperative for us to upgrade our management internationalization. And the big data on cloud computing gives us an opportunity.

For example, the selection and establishment of our network. In the past we went there to shoot a head, this place is good, quite lively. The result is that a lot of dot is built after not that thing, is lacks the accurate analysis judgment. I saw the author of the Big Data I invited, he was in Fort Lauderdale, where he put the community map of Pittsburgh, constantly clicked, clicked on every street, the distribution of residents around this street, the level of residents at a glance, and then you can according to this precise design judgment, you set a dot, he has this social level, You have to set up a network in the black area of Washington, you are bad, this level is very dangerous. So this is a management upgrade. The same is true of capital, our capital is very tight now, but how do we save capital, it's a judgment, the distribution of products to your various lines, the demand for products, the analysis of your future products, you can through cloud computing, let your capital more science, in each product line, Distributed between the today's future. There are many, including cost management, can be accurate resource integration and process transformation. There is no doubt that this will enhance our relationship.

The second one also said that the bottleneck of it, as the bank it also has a lot of problems, if the bank has cloud computing can greatly reduce our own data center, reduce our own IT staff, can be like electricity, tap water to save. There are many more. I read the book "Big Data", and what impresses me most is that anyone except God must speak with data. So in this era, cloud computing will bring challenges to banks, but also will bring a bright future and great opportunities for development, thank you.

(Responsible editor: The good of the Legacy)