Managing Director of Experian Greater China Jian Huang: Experian will take advantage of the economic transformation opportunities in China and offer better financial services to Chinese clients
The Chinese government has adopted a series of measures to boost economic growth, including stimulating consumption, further opening up to foreign investment, supporting private enterprises and encouraging technological innovation. China Daily interviewed senior executives of well-known multinational companies including Experian and Royal DSM to share their views on the country’s economic development and their companies’ business strategies in China.
Q: China has rolled out a series of measures to stimulate consumer spending and boost economic growth. What opportunities are there for your business?
Jian: Among the measures, the internet economy and credit system construction are being emphasised, and both are within Experian’s business domain. As China emphasises boosting domestic consumption through many measures, financial inclusion is constantly mentioned with a strong demand for development. With regard to this, Experian’s PowerCurve plays an important role as an engine to help banks and financial institutions implement decision support and analytics and maintain ideal relationships with targeted customers. Precisely targeted decisions, consistently executed across the customer life cycle, not only drive profitability, but also help consumers gain access to quality credit.
Moreover, with the rise of the internet economy, there are risks such as e-commerce fraud. If your fraud systems challenge, block or deny too many good transactions, your good customers will get frustrated. Effective fraud monitoring and detection engines should be about making the customer journey easy and fraud hard. Experian’s FraudNet and Hunter are ideal for any organisation relying on online transactions and/or accepting applications through traditional or digital channels.
Q: Overall Chinese economic growth has slowed, but the top-line numbers remain relatively robust. In what areas do you plan to increase investment or employment?
Jian: China's economy has been transforming from a phase of rapid growth to a stage of high-quality development. Under the circumstances, the financial industry is experiencing a critical transition to open banking and financial inclusion with a focus on technology and service.
Experian - with a long-term commitment to providing financial institutions with sophisticated decision support systems and analytical services - has a wealth of experience. Experian's operations in China now cover four major areas - commercial credit services, decision support and analytics, identity and fraud, and data quality and audience targeting. Experian's existing clients include the top 10 banks in China as well as leading enterprises in a wide range of fields such as e-commerce, retail, technology, automotive, hospitality, media, telecommunications, finance, payment and the public sector.
Q: What business opportunities do you see as China continues to pursue higher-quality growth, which is increasingly driven by services and consumption?
Jian: As open banking is gradually becoming a norm globally, most retail banks are expressing a willingness to embrace it. This change in attitude is attributed to the situations of different markets throughout the world. In China, it's initiated by financial technology innovation and driven by the market itself. Open banking has immense potential for banks and consumers alike, democraticising financial data for the benefit of all.
Experian provides beneficial insights and professional services to open banking endeavors from four perspectives - strategy, data, insights and implementation. Experian aims to help traditional banking operations in China as they are in transition to open banking in a safer and more efficient manner.
Experian's extensive experience in strategy management for retail banking as well as its deep understanding of the Chinese market garnered over decades of operations will enable it to help banks analyse their existing situations and formulate appropriate open banking strategies along with specific implementation methods.
To be truly open, data must be freely accessible, and financial institutions have to consolidate internal data and output them for application in conjunction with external data. Experian possesses unparalleled advantages in the area of automatic multivariate data integration.
The process of translating data into insights has always been Experian Consulting's strength. Experian's innovative X Labs constantly develops products, technologies and applications that meet customers' needs. Leveraging new data from open banking, Experian upgrades its traditional risk assessment model to a more powerful one.
Implementation calls for combining strategies, data and insights, connecting all the dots in the customer's system environment.
Q: What do you see as the most resilient part of the Chinese economy and how do you plan to align your business with it?
Jian: All aspects of the economy feature flexibilities, opportunities and possibilities. Experian always focuses on customer needs. With the development of open banking, there is greater freedom for consumers to compare and seamlessly switch financial service providers.
Through the continuous development of innovative products and services in keeping with the pace of technological advancement, Experian has been able to participate in and even take leadership in linking traditional closed systems of banks with the internet ecosystem, thereby creating a new frontier for banks. Banks and consumers are connected in a new manner such that in the internet ecosystem banks are empowered to come into direct contact with consumers, know more about consumers, and more accurately grasp and understand the real and even potential needs of the consumer.
Q: China has adopted policies to further open the economy to foreign investment, to transform financial services and to promote private enterprises. How are you planning to take advantage of these policies?
Jian: Taking advantage of a series of policies to open the economy to foreign investment, in September 2018, the operation management department of the People's Bank of China announced the completion of its review of an application filed by Experian Credit Service (Beijing) Co., Ltd to provide commercial credit services. Thus, Experian became the only wholly British-owned enterprise in China to have successfully passed the PBOC's application review process for the provision of commercial credit services.
Experian actively provides enterprises in China with insights into foreign and local markets, focusing on helping Chinese enterprises expand into overseas markets. The above landmark approval provided new momentum to Experian's business. Experian has been able to help enterprises make business decisions more efficiently, while also contributing to the orderly and steady development of China's commercial credit service market.
In addition, Experian actively participates in the construction of industry standards. Take the recent draft of the Comprehensive Credit Evaluation Index System for Small And Medium-Sized Enterprises led by the China Association of Small and Medium Enterprises as an example, Experian assisted in constructing the overall framework of the evaluation index system, and refining the evaluation indexes and evaluation methods in the first, second and third classes.
All in all, Experian has a long-term commitment to the Chinese market. In a favorable policy environment, Experian will be wholeheartedly serving Chinese companies and institutions across a variety of industries with more suitable and localised products and services.
Q: How does your company plan to take advantage of the technology transformation opportunities in China over the next decade?
Jian: Experian has assiduously made long-term investments in new technologies and applications, one of which is its innovative X Labs dedicated to constantly developing products, technologies and applications that meet local customers' needs.
Experian X Labs is working to discover and seed ideas or enhance existing solutions, building on Experian's core areas of expertise - financial inclusion, digital payments and consumer enablement, using the company's primary pillars - data analytics and modern technology.
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