Bank of China (Hong Kong) (BOCHK) and the Laboratory for AI-Powered Financial Technologies Limited (AIFT) have signed an agreement to jointly promote supply chain financial innovation and implement digital inclusive financial services.
AIFT integrates scientific research, talent cultivation, and business transformation and was jointly founded by internationally renowned institutions including City University of Hong Kong (CityU). AIFT is the sole financial technology company under the InnoHK Innovation Hong Kong Research and Development Platform, a flagship project of the Hong Kong Special Administrative Region Government.
This is the first cooperation between AIFT and a financial institution which will jointly use big data, artificial intelligence, and blockchain technology for research analysis. The aim is to deepen the bank’s understanding of the business models of small and medium-sized export e-commerce enterprises, and support their financing services applications.
Mr XU Haifeng, Deputy Chief Executive of Bank of China (Hong Kong) said, “BOCHK and AIFT will cooperate to further understand the business conditions of e-commerce enterprises through research on cutting-edge business models, such as cross-border e-commerce and the use of supply chain data. This will enhance our credit assessment of these enterprises and strengthen our service capabilities for e-commerce customers. This cooperation also reflects BOCHK’s active promotion of supply chain financial innovation and support for the Hong Kong Special Administrative Region Government’s promotion of financial technology and inclusive finance development.”
Professor Freddy BOEY, President of City University of Hong Kong, said, “CityU has always been committed to exploring and practicing innovative technologies. We hope to bring together more talent and strength in the field of cutting-edge technology, allowing it to expand continuously. This cooperation between BOCHK and AIFT combines the laboratory’s innovative technology, system platform, and BOCHK’s product concept and business scenario to jointly promote the application of financial technology in banking business and product research and development. We believe that everyone’s efforts will surely accelerate the development of Hong Kong’s financial technology.”
Professor Houmin YAN, Director of AIFT and Chair Professor of Management Sciences at the College of Business of CityU, said, “The cross-border B2C e-commerce industry chain in China is long, as is the capital occupation cycle. AIFT’s research and development combines artificial intelligence, big data, and blockchain technology with modern financial tools and joint machine learning frameworks to balance model optimization and enhance smart financial functions to promote credit and risk management decisions. Through cooperation with BOCHK, we hope to leverage each other’s strengths to provide financial support for the e-commerce industry and jointly promote the development of the financial technology ecosystem. This will not only bring more development opportunities for Hong Kong enterprises, but also enhance the ability of Hong Kong’s financial service industry to integrate with the economic development of the Greater Bay Area.”
Previous to this cooperation agreement, BOCHK and AIFT formed a joint working group at the end of last year to initiate cooperation plans related to supply chain finance. They have been studying how to effectively use AIFT’s data observation methods on the basis of BOCHK’s existing financial products to understand the business models and risks of export e-commerce financing, so as to simplify the loan approval process, and optimize customer experience.
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Bank of China (Hong Kong) Limited
Bank of China (Hong Kong) Limited (“BOCHK”) is committed to promoting sustainable and high quality development. Capitalising on our advantages as a major commercial banking group in Hong Kong, we continue to increase local market penetration, capture business opportunities in the Greater Bay Area and actively expand our business development in Southeast Asia. Adhering to our customer-centric philosophy, we explore every possibility to meet customers’ needs. We elevate customer experience with new technology and strive to make green and sustainable development a reality. We provide customers with comprehensive, professional and high-quality services, connecting them with opportunities to achieve more.
As one of the three note-issuing banks and the sole clearing bank for Renminbi (“RMB”) business in Hong Kong, BOCHK has strong market positions in all major businesses. Our strong RMB franchise has made us the first choice for customers in RMB business. Leveraging Hong Kong’s most extensive branch network and diversified service platforms, as well as efficient e-channels such as internet and mobile banking services, we offer a comprehensive range of financial, investment and wealth management services to personal, corporate and institutional customers.
We are actively pushing forward our regional development and expanding our business in the Southeast Asian region. With our branches and subsidiaries in Thailand, Malaysia, Vietnam, the Philippines, Indonesia, Cambodia, Laos, Brunei and Myanmar, we support customers in the region with professional and high-quality financial services. Through close cooperation with our parent bank BOC, we provide a full range of high-quality cross-border services to multinationals, cross-border customers, mainland enterprises going global, central banks and super-sovereign organisations.
As a leading commercial and regional bank with deep roots in Hong Kong for over 100 years, BOCHK is committed to “serving where our roots are”, undertaking our corporate social responsibilities and delivering greater value for our stakeholders and the community.
BOC Hong Kong (Holdings) Limited is one of the largest listed companies on the Main Board of the Stock Exchange of Hong Kong, with stock code “2388” and ADR OTC Symbol “BHKLY”.
The Laboratory for AI-Powered Financial Technologies Limited
The Laboratory for AI-Powered Financial Technologies Limited (AIFT) is an innovative research and technology center cofounded by City University of Hong Kong and Columbia University with the commitments to pioneering research, fostering talents, and commercializing technological applications. AIFT is the only FinTech research lab recognized by the InnoHK Research Cluster of the HKSAR government.
AIFT aims to integrate modern financial theories, digital artificial intelligence technologies, and traditional risk control methods to address three key issues in the supply chain finance: data and price discovery mechanisms, risk control mechanisms, and settlement guarantee mechanisms.