From “6 Days” to “1 Hour”: How AI Is Reshaping the Relationship Between Banks and Small Businesses?
Summary of Key Points
The core of this news is that artificial intelligence (AI) is no longer just a “calculator” in the background of banks; it has evolved into a “versatile assistant” at the front desk. Netcom Bank launched the “Bailing 2.0” intelligent system at the Bund Conference, marking a progression in AI from being capable of simple conversations to handling complex tasks in the financial sector. With AI, banks can instantly understand the needs of affected farmers or business owners, automatically coordinating multiple departments such as risk management, approval, and marketing. This process, which used to take days or even weeks to complete, can now be accomplished in as little as 1 hour or even 10 minutes.
This is not just a technological upgrade but also a organizational revolution: The division of labor within banks has been redefined, with AI handling execution and exploration, while humans set standards and take responsibility. The ultimate goal is to make inclusive finance truly accessible to the 42 million small businesses and 300 million new urban residents that traditional banks have difficulty reaching.
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Detailed Explanation: How AI Makes Financial Services More Personalized and Efficient?
1. The Speed Revolution: From “People Seeking Services” to “Services Finding People”
In simple terms:
In the past, going to the bank was like queuing up at a government office for a stamp. You filled out forms and submitted documents, which then circulated among different departments before you received a response. This process was slow and inflexible.
Now, AI acts like a super-smart “versatile secretary.”
- Example: Farmer Lao Tan in Guangxi, whose citrus orchard was damaged by a typhoon, used to have to go to the bank in person or wait for 6 days for a response after the bank received the report. Now, with just one statement about the disaster, AI handles everything within 1 hour.
- Key point: AI doesn’t just consider Lao Tan’s situation; it also takes into account the effects of the same typhoon on other farmers (such as those growing rice or raising aquatic products), as well as the chain reactions in the supply chain (e.g., distributors hoarding goods or traffic delays).
- Essential change: Previously, you had to think of a solution, and AI was a tool; now, AI identifies who needs help and generates a plan for you to approve.
2. Enhanced Experience: AI as a “Proficient CFO”
In simple terms:
Many small business owners (like Business Owner Wang running a restaurant) don’t understand finance well. They know they need money but don’t know exactly how much or how to borrow it most efficiently, or whether the repayment pressure will be too high. In the past, bank clerks might ask routine questions like, “How much do you need to borrow? What’s the collateral?”
Now, AI “Bailing 2.0” acts as a personal CFO:
- In-depth conversation: When Business Owner Wang says he wants to increase his credit limit, AI doesn’t just give the money immediately but asks questions like, “Where’s your new store located? What’s your expected investment? How’s the performance of your current store?”
- Precise calculation: AI considers the store’s performance, brand influence, and market conditions to estimate potential profits and repayment risks, then proposes a plan that allows the owner to pay only interest for the first six months.
- Result: The credit limit is increased from 150,000 to 400,000 yuan in 10 minutes, matching the business’s needs.
- Essential change: AI transforms the vague request for a loan into a clear financing plan, making financial services more accessible to small business owners.
3. Organizational Restructuring: Breaking Down Departmental Barriers
In simple terms:
Traditional banks are like large mazes, with departments like risk management, approval, marketing, and research separated by physical barriers. Coordinating tasks across departments is very inefficient.
AI eliminates these barriers:
- Decomposition of expertise: Banks break down the expertise scattered among experts (e.g., how to evaluate a market or assess risks) into smaller, standardized “atomic capabilities.”
- AI coordination: When a request comes in, AI acts as a commander, instantly invoking various capabilities (market analysis, risk assessment, product matching) to solve the problem.
- New division of labor:
- AI handles: Information collection, preliminary analysis, execution, and exploration of possibilities.
- Humans handle: Setting standards, reviewing results, making critical decisions, and being responsible for the final outcomes.
- Essential change: Banks are no longer just a collection of isolated departments; they become a network of intelligent systems working together. Experts’ knowledge is no longer tied to individuals but becomes a shared resource for the entire system.
4. Dramatic Efficiency Improvements: The Power of Data
In simple terms:
AI’s speed improvement is not just quantitative; it also enhances the quality of services, making them more reliable.
The news provides several impressive figures:
- Processing speed: The ability to handle complex loan applications has increased by nearly 20 times. What used to take 3 days now takes 10 minutes.
- Reduced errors: The number of legitimate applicants wrongly denied has decreased by about 40%. Banks used to reject many good candidates due to risk concerns; now, AI can accurately identify those in real need.
- Rapid development: Developing a new feature has been accelerated from 33 days to 2 days. This means banks can respond quickly to market changes, such as launching disaster relief loans within an hour, rather than waiting for half a year.
- Essential change: AI not only speeds up processes but also improves accuracy and flexibility, making financial services more user-friendly and supportive.
5. Future Trends: AI Banks Are About Collaboration, Not Replacement
In simple terms:
Many worry that AI will replace bank employees or make banks impersonal. However, the news emphasizes that the focus of AI banks is on collaboration and inclusivity:
- Three trends:
1. System evolution: Bank systems will evolve from “people + software” to “people + AI intelligent systems + workflows + data.”
2. User interface: You won’t need to search through menus or click buttons on apps; you can directly interact with AI using natural language. The future competition will be about whose AI understands you best.
3. Management transformation: Banks will need to manage both human and digital employees, setting KPIs for AI and ensuring it operates within safe and compliant frameworks.
- Three key considerations:
- Risk management: No matter how smart AI is, it must still adhere to safety and risk guidelines.
- Human leadership: Critical decisions must be made by humans, with AI as a support tool.
- Inclusive impact: Technology should benefit all, not just large cities and companies.
- Essential change: AI’s goal is to expand the reach of inclusive finance, reaching areas previously unreachable by traditional banks (e.g., flexible employment and remote farmers).
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Conclusion for the General Public
1. If you’re a small business owner: In the future, you might not need to fill out lengthy forms when borrowing from a bank; you can simply talk to AI, which will help you understand your needs, match the right products, and even prepare the necessary documents. Financial services will become as convenient, fast, and personalized as online shopping.
2. If you’re a bank employee: Your role is shifting from a task executor to a supervisor and decision-maker. You’ll need to learn how to collaborate with AI, set goals for it, and review its results. Your value lies in your judgment and responsibility, not in repetitive work.
3. If you’re an investor or observer: The application of AI in finance has moved from a concept to a practical reality. Focus on financial institutions that integrate AI into their core processes, improve efficiency, and expand service coverage; they will have a competitive advantage in the future.
In one sentence: AI is transforming banks from cold, impersonal institutions into warm, intelligent partners, making financial services available, accurate, and accessible to everyone.