People's Bank of Wangxiaolei: financial credit in the big data age

2014 Zhongguancun Large Data day on December 11, 2014 in Zhongguancun, the General Assembly to "aggregate data assets, promote industrial innovation" as the theme, to explore data asset management and transformation, large data depth technology and industry data application innovation and ecological system construction and so on key issues. The Conference also carries on the question of the demand and practice of the departments in charge of the government, the finance, the operators and so on to realize the path of transformation and industry innovation through the management and operation of data assets.

In the afternoon financial @big Data Forum, the People's Bank Credit Center deputy Director Wangxiaolei brought "large data age financial credit" keynote speech. Wangxiaolei on three issues: the first is the relationship between large data and credit, the second is the financial industry in the end what can be called large data, the third is the problem of large data credit.

The following is the full text of Wangxiaolei's speech:

Wangxiaolei: Everybody good afternoon, I participated in a lot of meeting, today this form a bit not adapt, today is standing on the stage. I am very glad to have the opportunity to communicate with you the financial credit in the era of large data, I have three major exchanges with you. The first is the relationship between the big data and the credit, and the second is what the financial sector can call big data, and the third is the problem of large data credit.

For the first question it is clear to everyone that the most crucial issue for finance, especially for the credit market, is asymmetric information, what does this asymmetric information mean? Lenders never know who they are, so the core is the lenders or lenders who want to know the borrowers. Huanhuan said that he had discussed large data and finance, and found that large data concepts could be used in financial markets, and that for a borrower and an enterprise, the information was much more akin to large data on businesses and individuals. For China's credit markets, the knowledge of borrowers is particularly inadequate. Why do you say that? As you may have heard, the United States has a very developed credit system, the credit system, as long as the entry of social Security number, about this person all information will come out, there is a score. With this score you can decide whether to give him a loan, the number of loans, sounds very simple and very myth. But is it? This question will unfold with my introduction. Such a problem for China, we may also see a lot of arguments, including Yi Huan, said that the biggest problem of China's peer-to-peer underdevelopment is that China has no developed credit system, this sentence is also right or wrong, where is the right place? For example, for our country, the People's Bank Credit Center operation Management of personal and corporate credit system, we collected more than 800 million people's information, only 300 million people and banks have had a credit relationship. 500 million people did not. Everybody clearly says this personal credit record, credit record, what is recorded in the end? Is credit behavior, what is called credit behavior? Credit behavior must involve borrowing money and paying it back. For example, after the first consumption of payment, this is credit. Why borrow money is credit? Enterprises, individuals, banks are good, give 20,000 to you, 20 dollars to you, so that you spend is to trust you, the prerequisite is to trust you, think you will be able to return after a certain time. So the credit record must record your credit activity, such words I think everybody brains forward to think one step will be clear, must have the credit activity first, only then has the credit record.

Which means Yi Huan what they say is wrong? It's not right. In the first place, he saw that China's credit system was underdeveloped, but there was no further reason why China's credit system was underdeveloped. Most of the time, the credit market is underdeveloped in China. Because you do not have this form of credit transactions, so there is no way to record, no behavior can be recorded. Then, in addition to the monetization of the transaction, the first consumption after the payment. Telecom, 2000 I came from the United States to do the first mobile phone is easy, id call him, first call after payment, then you know that telecom operators in the want to upgrade, is the first payment after the call, why upgrade? 2002, I was told that the loss of mobile telecom operators in 2002, that is, the phone fee is 20 billion, 2002 people's consumption level is much higher? More than 20 billion of the year's arrears, so that China's credit environment is very deteriorating, the consequences of the deterioration? The telecom operators said they would not wait, so they pressed the money first. I have experienced this experience, the company's top executives phone dozen no money, broke, the internet company's most exquisite customer experience, such experience good? What is the bad reason? The credit environment deteriorated. So the deterioration of the credit environment caused the Chinese 1.3 billion people who really trust you, first let you consume less things, such things less can record less behavior, credit records naturally less. Less information can be found in the credit system. So a lot of people will go back and say that this is the problem of chicken eggs and raw chicken, but first have to have a deal to have records.

Why does the Internet age provide a very good condition for lenders to know their customers? Is that with the development of the Internet a lot of behavior can be recorded, including a variety of credit behavior, so the mobile Internet, the development of things to make more behavior can be recorded, so there are more data, with more data more convenient for lenders to understand customers. Lenders understand the customer bank to answer three major questions, who is the first borrower, including enterprises and individuals, the second question is not the willingness to repay, the third is the ability to repay. Many of you here are playing with the data, so the so-called internet can give us very, very good help in answering those three big questions about our so-called Big data. And these help may be in the traditional financial under the banks have not had. For example, about positioning, people often say Wangxiaolei said you work in the Credit center, then check your phone, your cell phone signal has never been to the credit center, so you can fill in the application form your work unit and address is what, but your own mobile phone, such information exposes you are telling lies. There is also a very magical thing, you said I was a PhD graduate, in the United States. But when you are on the Internet, when you fill out the application form by machine, your name is all capitalized. And then there's data that says if you're in caps, all capitalized, and your colleagues say you graduated from a ph. D., the fake ingredients are very, very high. So with the Internet, many, many, previously not-recorded acts are recorded, and so many of the data that were previously non-existent have been created, and these data offer many new opportunities for the lenders and the wider people to understand each other.

Where are the big figures for the financial sector in China? What's the use? According to my recent thinking, I think the financial industry for the exploration of large data applications, can be divided into macro, meso and micro. To the macroscopic, it is helpful to improve the grasp of credit market law, we used to talk about the data in the sample, now if the concept of a large data, the credit market, the behavior of each borrower, just as the economic system, the borrower's behavior is recorded, in the market-wide, full database conditions can be better more comprehensive analysis, The characteristics and performance of the borrower's behavior in our credit market. Of course, there are also disputes in the credit center, some statistics on the said I tell you that the total amount of your draw with the conclusions will not be fundamentally different, in which case we will not discuss the difference, we have to make the results than, these things we are in progress.

The second major application is meso, strengthening operations management, improve wind control capacity, this refers to the banks of their own characteristics to use the data to better understand the bank's competitiveness in the market. The third is micro-use, credit market is a macro concept, but in the credit market specific to each borrower, regardless of enterprise and individual is a very micro. At the beginning, when Yi Huan the concept of large data to a single subject, the data was a great help to understand borrowers, in other words, to credit borrowers. As for the new approach to credit, I would like to stress that there are often two meanings to the letter, one meaning is that all lenders know the borrower, the preliminary static investigation and the pre-credit investigation, and this behavior is the credit. One type of information on one's own is the need for lenders to take responsibility, which, of course, cannot be. Here you can guess, this information is the borrower in his competitor that side of the transaction information, for example, is that I am a customer of ICBC, and I also investment clients, industry and commerce to understand my investment in the transaction situation is almost impossible. Some people say you tell ICBC yourself, it is a concept is a third-party credit, the existence of a condition is that I do not believe that the data body, I do not believe that the borrower himself told me the information, so it is necessary to levy a letter. In this case there is a kind of information for lenders to carry out risk assessment of borrowers is more necessary but they do not, created an independent third party credit, which is what our credit center did, independent third parties, the core message we do for independent Third-party credit is that lenders need But a single lender is simply not going to get it, which is the most information the Third-party credit agencies should collect. There are individual third parties and lenders available, but at a high cost. If the independent third party organization does not only can reduce the cost, but also may reduce the entire social cost.

For example, the Court's civil decision information, especially in the United States, the individual is bankrupt. It is impossible for a bank to give a new loan to a bankrupt, and it should be more cautious if conditions are to be issued. Where does the personal bankruptcy information come from? All in court, in what form does the court exist? It's the bulletin board at the courthouse, so it needs a third party to copy the information, so it's called public information. We collect information from banks and, on the other hand, are actively consulting with the units of the various public data sources to incorporate them into the credit system.

If you take note of yesterday's TV news, and the print media news from yesterday and the day before, you will see the People's Bank Credit Center and the Ministry of Environmental Protection and the Inland Revenue Department, the court and so on four or five institutions signed the agreement, these organizations agreed to put their generated information into the credit system. This is a concept in the credit, with this large data, the previous approach is basically the so-called offline, in the future, for example, to take the court information, if the courts in his portal to the public information, it does not need to go to every court door to copy. Through the Internet or whatever the way you can get information. So, as the data from the line to the line, from paper to electronic, so that more information can be obtained, and to a certain extent low-cost access.

Speaking of the bank some time ago, many people criticized the bank, said that the bank and the Internet is not a bit, as if not with the big data, things really like this? This morning, the construction Bank of Liu always communicate with you, the afternoon there are exchanges, he has his views, here is my observation. In fact, the bank in the past few years, in the use of data has made a very very big progress, the Bank of the use of data and the development of China's financial system has a very big relationship, the people here are very young, you do not think in 1984, how many banks in China? (Static to due diligence), only one, called the People's Bank of China, the foreign bank. At that time after the Cultural Revolution, through the central planned economy, China's commodity economy, market economy almost non-existent. Since 1984, gradually separated from the Bank of China banks, there was no concept of loans at that time, called the appropriation, similar to the financial allocations, then China's culture is this money still want it? Isn't that the money? What are your habits before this? Plan, Shong, plan, Shong. Gradually with the commercial Bank law, our bank began to exist as a commercial subject. The whole idea also gradually from the executive order, Shong, relations, toward risk management, data analysis.

Before the bank to the data do not pay attention to, for example, the information of the giant loan customers, anyway, do not give you a loan, the form to throw. The past few years, the bank's management has been a separate account, take merchants Bank, all departments have complete information, credit cards, mortgages and so on. In recent years, from account management to customer-centric management, all Wangxiaolei relationships with banks, such as those with securities or other affiliated companies, are managed in a unified management. One day when China Merchants Bank called to say we can do our Golden Sunflower card, I said no ah I heard you are the amount of money, if not to charge. He said, how do you know to meet your needs? He said it was a comprehensive consideration of the transaction in the bank. So this attraction is huge, it's inside the bank. There is also a lot of information and information outside the bank, and the information of the credit system is very important. (huge loan refuses to lend) so you can see that the bank is not said not to use data, banks are not idle.

If according to the previous talk about enterprises and individuals in the internet age, all the data will be pooled, where is this data? One is the bank of information, telecommunications operators have a lot of information, as well as the electric business platform, the consumer trading platform in the information, as well as public Internet platform, various types of online application platform, mobile applications, as well as public information. To the enterprise also, the bank, the electric business platform, the supply chain platform and so on, a lot of information if according to the previous standard is difficult to imagine will be used, such as financial software, financial software generated information. This information was not previously conceivable to be exploited, but it is now being mined. In the case of large data is not the bank lending institutions to reduce the cost of audit? The question may be hard to say now. From the point of view of Amoy Bora said it is possible to reduce costs, because its platform already exists, the platform already exists under the conditions can be counted editing costs, editing cost is low. But considering the cost of setting up the platform is hard to say, this is also a point that often bothers me, Ma Yun said that the future of Ali's assets in the data, I am very difficult to understand this question. If you as an electric business platform most of the revenue from the data transaction is also called the Electric business platform? Maybe it's because my mind is too backward to keep up with the times, but I do have such a question.

In the case of large Internet data, are there any new forms of credit for New independent third parties like the credit centre? Yes. Now here's the traditional model, like the new center. The credit model is that all lenders submit data to the credit system, and the English letter is called (English), the report means. All lenders submit the borrower's information to the credit center, a model like the traditional credit agency. As I said, there is a very important point is that many people have never had a business relationship with lenders, no lenders can send the data to him, where are the information from these people? There is also a new model in the United States, and this third party model is me to verify that the information you provide is correct. Therefore, under this new type of credit system, the borrower is able to submit the information to the credit center, which can prove his status and prove his repayment ability independently, which is the correct information in various ways. I think this new model may have great potential in China in the future because we have too many people without any credit records or credit histories.

As for the new credit model, a problem has been raised, just now Yi Huan also said that the comprehensive data on the borrower's Congress, in fact, has caused everyone to be transparent in the internet age. Technically, it could be a completely private person, before answering the privacy protection, there is a deal. Inequality of equality in the transaction, under the traditional credit is indeed for individuals, for the loan is to allow some personal privacy, but to get more fair credit transactions opportunities. Balance is balanced, I let a part of the privacy, this part of the privacy is very limited, mainly to borrow money information. In the big data Internet under the personal almost no privacy, in order to verify the authenticity of my identity, he may know that I 24 hours a day positioning, in this case the exchange is also equal? I was joking when talking to colleagues, I said I just need money, this time I need funds, but want to borrow some money, as to make me even small underwear are not left? So this is the first question that big data has to answer in Internet credit. For borrowers, I need help now, and I need to be able to have more access to finance and loans. But in this case, do I really need to leave me with nothing left?

The second issue concerns privacy protection and consumer rights. The recent international research on this issue has become more and more enthusiastic. When it comes to the protection of consumers ' rights and interests, there are two ways, two kinds of thinking. One is that there is no privacy at all in large data, and no privacy policy is to be discussed. The other is that, on the contrary, individual countries have strengthened their privacy protections. This is some of the principles of the traditional data protection model under traditional patterns, such as establishing any database for purpose, and what is the purpose of establishing a database? In order to achieve a certain purpose of collecting information to be appropriate, not too much, too little may not meet your purpose, but also not too much, so want the right amount.

Some people think that in the present situation, these objectives are actually very difficult to implement, is there any other principles? Here I also share my personal point of view, I am not a technical pie I do not understand technology, I do not engage in technology. But I always think that technological progress brings more freedom and dignity to people. Human choice of state should not be based on the limits of technology to achieve the goal and principle, so with many situations technically can be achieved, technology can really make people become transparent people, but as a dignified human, that is really what we want to choose? So in fact the situation in the United States and Europe has given us an answer, humans can not choose this. In Europe, for example, take data protection law, its data protection law is strengthened, here give two amendments more clear, in the individual right, one is the data portability right, but there is a more important amendment is the EU to extend the application of data protection law to the whole world. For the United States, too, the United States used to think he was a free public information, in fact, in recent years has also strengthened consumer privacy protection legislation. 3rd, I think it is worthy of our presence here in China's Internet xinye seriously consider the issue, is the protection of individual privacy of the global order, the EU to its protection law to extend the scope of the world. In other words, if an enterprise is to collect information about residents in Europe and provide it externally, you must meet the requirements of the European Data protection law. With the development of the Internet, internationalization of the development, especially for the current Taobao or Tencent, or micro-letter is good, the world is in use. (Well, the new letter), including the Chinese population, is used in the process of data protection in the end can only be globally consistent. I mean, I know a lot of organizations in the big data industry, and I've asked them, I said you do the same thing in China, what country can you do before you go home? The head shakes like the wave drum, cannot do, violates the law, can not do, the illegal. So another problem is that China's legislation is a serious lag in terms of personal information protection.

I also heard a lot of voices in the industry, also hope that there is a rule and norms in the formulation of China's data Protection law rules and regulations, on the one hand can learn from international experience, on the other hand, the industry itself, the industry is also duty-bound, a lot from the industry self-discipline began to rise to regulations, and eventually to the law. So much for my communication today.

(Responsible editor: Mengyishan)