MYbank, a leading digital bank in China and an associate of Ant Group, recently launched its AI-enabled system (Cuckoo System) for small and micro-sized enterprise (SME) money management systems. The inauguration happened at the 2024 INCLUSION Conference on the Bund.
According to Industry sources, the system displays the cash flow of SMEs across various industries, powering bank-affiliated investment management firms in more effectively anticipating the timing of SMEs’ subscriptions and redemptions of investment products and aiding the SMEs generate reasonable returns from their idle cash.
Industry sources also highlighted that Powered by Ant Group’s BaiLing foundation model, the system leverages a time-series encoder to build up highly accurate cash flow prediction models for SMEs across numerous sectors, including e-commerce, retail, and agriculture, achieving an accuracy rate of over 95%. Backed on these cash flow predictions, the system also models the likelihood of future investment product purchases and redemptions. These timely insights power bank-affiliated investment management companies to optimize fund utilization and improve asset allocation efficiency by 10%, thereby enhancing overall product returns.
Feng Liang, MYbank President, highlighted the liquidity management challenges faced by SMEs: While SMEs may not prioritize high returns, they require investment products that offer a high level of capital security, align with their variable cash flow cycles, and provide stable returns.
“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,” stated Liang.
According to McKinsey, the bank-affiliated investment management market is poised to touch 50 trillion yuan by 2030, with the client base expected to surge to 200 million. SMEs are known to be one of the most promising client 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,” unveiled at the INCLUSION Conference.
