“Jack Ma’s online bank is leading a quiet revolution in the way China lends to small businesses, taking aim at a credit bottleneck that has held back Asia’s largest economy for decades.
Using real-time payments data and a risk-management system that analyses more than 3,000 variables, Ma’s four-year-old MYbank has lent 2 trillion yuan (US$290 billion) to nearly 16 million small companies.
The whole process takes three minutes and involves zero human bankers. The default rate so far: about 1%.
China is quickly becoming a world leader in the use of big data and artificial-intelligence (AI) technology to make loans, according to Cliff Sheng, co-head of Greater China financial services at Oliver Wyman, a consulting firm.”
“In 2017, a unique cyberattack was reported by a renowned cybersecurity firm Darktrace. In this, machine learning was used to observe and learn normal user behavior patterns within a network. The malicious software started to copy normal behavior combining it into the background which became difficult for security tools to identify it.
Failure by governments to take proactive measures to ensure the security of AI systems “is going to come back to bite us,” Omar Al Olama, minister of state for artificial intelligence for the United Arab Emirates, warned.”
“The study indicated that China surprisingly was ranked in the low position of 20th, even though central and local governments are implementing AI in public service delivery. However, it predicted that China, which was in fifth place in Asia-Pacific, is likely to perform better in next year’s ranking.”