Original title: China's AI Technology Attracts World Attention Again “South China Morning Post” In-depth Analysis of Lexin's AI Innovation Source: Financial Industry Website

The rapid development of artificial intelligence (AI) technology in China has garnered global attention in recent years. Driven by Chinese technology companies scrambling to innovate, China is changing from a follower of the US to a challenger and global leader in the field of AI.

Recently, the most influential English-language media in Asia, “South China Morning Post”, in a headline report, thoroughly analyzed the AI and big data technology that Chinese technology companies are leading the world. Using the AI technology of the new Chinese consumer company Lexin as an example, the report points out that “Chinese technology companies can be called experts” in using AI to continuously innovate and enhance the user experience.

“China's tech giants have a complete AI and big data ecosystem.” The “South China Morning Post” wrote that Taobao, for example, has accumulated a large amount of information on user behavior and preferences, and can recommend products based on it, including countries that users may like to travel to, food, shoes, or perfume.

According to the “South China Morning Post”, Lexin's installment shopping mall provides users with a wide range of consumer services, from mobile phones and computers to snacks and cosmetics. According to reports, in the new version recently launched, Instalment combines high-quality merchants with high-quality content through AI and big data technology to achieve a new e-commerce model of “screen is a store, content is a product”, greatly improving consumers' sense of acquisition and joy, and the efficiency of matching products with users.

The “South China Morning Post” also notes that Chinese tech giants are using unique AI technology in the field of consumer finance. By using big data and AI technology that is different from traditional credit evaluation methods, they can more accurately establish users' credit profiles and enhance the user experience.

“Using algorithms to analyze data and assess risk is a core advantage for technology companies.” The “South China Morning Post” pointed out.

Lexin CEO Xiao Wenjie told the “South China Morning Post” that AI can achieve risk control based on weak credit reporting data, greatly improve the operational efficiency of all aspects of the credit granting, transaction, and collection process of small and micro consumer loans, and reduce the company's operating costs.

Driven by AI applications, Lexin's IT costs were only one-tenth of traditional financial institutions such as banks. In the 3rd quarter, its operating costs only accounted for 3.5% of the loan balance; in the 3rd quarter, Lexin users increased sharply by 70% year over year to 106 million, total orders increased 50% year over year to 84.4 million, and transaction volume reached 48.3 billion yuan.

In addition to using AI technology for the platform's own risk control and user experience improvement, Lexin also exports AI and big data technology to financial institutions to provide them with efficient operation services, and give full play to technological capabilities such as customer acquisition, system construction, and operation management.

In terms of customer acquisition, Lexin has developed a “recommendation” customized customer acquisition service system based on the RTA model, which can help financial institutions develop user profiles, screen effective users, co-marketing, etc., and has now helped partner financial institutions increase the user registration conversion rate by 10-30% compared to the previous one, and the credit conversion rate by 20-50%.

In terms of risk control, Lexin's “Letu” risk profile products can help financial institutions increase credit approval rates by 20% and reduce risk by more than 50%; the “negative entropy” risk operation platform provides financial institutions with core risk control capabilities such as anti-fraud deployment, decision flow allocation, federal learning, and risk pricing, serving over 100 licensed financial institutions.

In terms of Internet operation, Lexin can help financial institutions provide product construction, user operation, data services and other basic services. In terms of technical system construction, Lexin cooperates with financial institutions to customize credit business systems, intelligent risk control systems, asset management systems, etc., to provide underlying data and basic management support for the system.

By providing technical services to financial institutions, Lexin ToB's service revenue surged 159% to 614 million in the 3rd quarter. Since October, the transaction volume generated under Lexin's pure technology service model has accounted for more than 50% of the new transaction volume.

In August 2020, Lexin AI Center won the 2020 “China's Best AI Innovation Laboratory” award from Singapore's “Asian Banker” magazine for its technological innovation and mature application in ToB technology services.

In response to the South China Morning Post report, American AI bestselling author Richard Turrin pointed out that China's AI technology is being learned and imitated by American tech giants.

“Google Plex, a payment platform owned by Google, is imitating China's electronic payment practices. Through Google Plex, Western technology companies will be able to provide users with better services through AI and big data technology in the future, just like their Chinese technology peers.” Richard Turrin predicts.

As early as 2017, the British “The Economist” magazine wrote an article pointing out that in the field of AI, China is catching up with the US. Some analysts believe that by 2030, AI will drive global GDP growth of 16 trillion US dollars, and nearly half of this incremental wealth will go to China.

In 2019, the US “Wall Street Journal” pointed out that China is rapidly catching up with the US in the field of AI research. It is expected that in 2020, China will surpass the US in the number of papers in the top 10% of citations, and will catch up with the US in the number of top 1% of papers in 2023-2023. China is expected to become a global leader in artificial intelligence by 2030.