Business Wire

MYbank Launches AI-Enabled System for SME Money Management at Shanghai’s INCLUSION Conference

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MYbank, a leading digital bank in China and an associate of Ant Group, today introduced its AI-enabled system (Cuckoo System) for small and micro-sized enterprise (SME) money management at the 2024 INCLUSION·Conference on the Bund.

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MYbank President Feng Liang introduces the AI-enabled system (Cuckoo System) for SME money management at the 2024 INCLUSION·Conference on the Bund. (Photo: Business Wire)

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 maximize efficiency in their financial management.

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,” said Liang.

Powered by Ant Group's BaiLing foundation model, the system utilizes 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 optimize fund utilization 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 optimize seven SME-focused investment management products.

According 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,” unveiled at the INCLUSION Conference.

About MYbank

Founded in 2015 with a focus on serving SMEs and farmers, MYbank was among the first group of pilot private commercial banks in China. It was also the first bank in China to deploy its core banking system entirely on the cloud without any physical branches.

MYbank pioneered the “310 model” for SME financing, which offers a collateral-free business loan that takes less than three minutes to apply on a mobile phone, less than one second to approve and requires zero human interaction.

In addition to advanced risk-management solutions, MYbank has harnessed technologies such as AI and remote sensing to streamline credit services for farmers. This approach eliminates the need for lengthy processes or paper documentation, making digital loans more accessible to them.

Media Inquiries
MYbank: mediapress@service.mybank.cn

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