MYbank, a digital bank in China and an associate of Ant Group, has introduced its AI-enabled system (Cuckoo System) for small and micro-sized enterprise (SME) money management.
The system forecasts the cash flow of SMEs across various industries, assisting bank-affiliated investment management companies in more effectively anticipating the timing of SMEs’ subscriptions and redemptions of investment products and helping SMEs generate reasonable returns from their idle cash. By aligning financial offerings with the operational cycles of SMEs, the system helps maximise efficiency in their financial management.
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Feng Liang, MYbank President, said:“As of the end of 2023, MYbank has served over 53 million SMEs cumulatively. MYbank aims to leverage its deep understanding of SMEs’ needs and cash flow, along with AI technology and the convenience of digital banking, to create an advanced money management experience for SMEs and support the growth of the real economy.”
The system is powered by Ant Group’s BaiLing foundation model
The system utilises a time-series encoder to create highly accurate cash flow prediction models for SMEs across various sectors, including e-commerce, retail, and agriculture, achieving an accuracy rate of over 95%.
Building on these cash flow predictions, the system also models the likelihood of future investment product purchases and redemptions. These timely insights enable bank-affiliated investment management companies to optimise fund utilisation and improve asset allocation efficiency by 10%, thereby enhancing overall product returns.
As of September 2024, MYbank has established partnerships with 23 bank-affiliated investment management companies, five of which have closely adopted the system to optimise seven SME-focused investment management products.
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By GlobalDataAccording to McKinsey, the bank-affiliated investment management market is projected to reach 50 trillion yuan by 2030, with the user base expected to grow to 200 million. SMEs are highlighted as one of the most promising customer segments, with their market contribution potentially doubling over the next five years, as noted in McKinsey’s report, “Bank-affiliated Investment Management Market Trends and Opportunities for SMEs.”
