In this era, due to the progress of technology, the difference between traditional finance and the present is that the channels have changed, and users can obtain financial services through various channels at any time and anywhere. Traditional finance has personalized service for large enterprises, and the largest 500 enterprises can easily borrow money. Traditional finance is a standardized product for mid-range enterprises and individuals, while the smallest small and micro enterprises and individuals cannot be covered because of the high cost. In the Internet age, because of the progress of technology, it can also cover mid-range and low-end users, and can realize personalized services regardless of high-end, mid-range and low-end. We are entering an exciting DT era.

In the past, finance was separated from consumption and socialization, but now many financial services are combined with life, consumption and socialization. For example, Yu 'ebao is a product that combines consumption and finance well. For example, WeChat payment is a social scene plus payment. Therefore, the combination of finance and many scenes has become very important, the boundaries of finance have become blurred, and the species in this ecological circle have become more and more diverse.

In traditional finance, in many cases, data is collected manually, which is expensive and like an island. Nowadays, Internet finance automatically obtains data in business and life scenarios. The data is accumulated unconsciously, with very low cost, and it is mobile and life data. In this era, the transparency of the financial system has been greatly improved.

What exactly does Internet finance do? Internet finance will not subvert traditional finance. Traditional finance has always been a very personalized service for big customers. Internet finance makes use of its advantages in channels, data and technology to better provide inclusive finance services for long-tail users. This kind of service is not only the change of technology itself, but also the change of thinking mode, that is, the so-called internet thinking, taking customers as the center. It is very important that not only your technology will change, but also the way you do things will change.

Ant Financial will build three platforms.

Now let's talk about the platform. Let's talk about the platform of the channel first. Crowdfunding is to raise funds, raise resources and bring everyone's strength together. Its essence is the platform of channel. The platformization of channels, coupled with the data processing ability, is a better representative of P2P. Channels connect borrowers and lenders, but they are just connections, and they have not overcome another financial challenge, that is, the risk challenge. Therefore, it is not enough for you to just connect the borrower and the borrower. You should be able to evaluate and price the risks in assets. A typical example is Lending Club, which provides loans based on data risk rating through channel financing and existing credit information, but does not provide guarantees. Most P2P in China is guaranteed. In fact, the guarantee only transfers the risk assessment ability to the guarantor, but does not reduce its risk. I think the real platformization of P2P is a long-term trend, otherwise it will easily become a Ponzi scheme.

Then there is the platform for data. Now because there are a lot of data, the data of each channel is different. Combine data to maximize the value of data. Ant Financial calls this data co-creation, which can generate new financial products. Let me give you an example. Shopping on Taobao has a freight insurance, which is very cheap, a few cents. This insurance is very important and can improve the user experience. At first, the insurance company was invited to do this insurance. It was actuarial and lost a lot of money. Later, our big data team stepped in, connected our data with theirs, and found the risk very accurately through the analysis of data creation. In this case, the lost money was quickly earned back. People who do big data are no worse than those who do professional insurance. This is a very interesting example. In this example, because your data is combined with other people's data, you can beat the most professional actuarial company, which is very interesting Why Internet companies can do finance, because it has its strengths and data analysis capabilities. Ant Financial Service hopes to have such a platform to share data with you, and make data together to create development products on the premise of respecting the rights and interests of users and partners.

Finally, the platformization of technology. Now Alipay's processing power, the entire cloud computing and big data processing power, we are all world-class level. Some people think that your payment may be more risky than traditional banks. The probability of a plane falling is one in a million, and the probability of a meteorite falling is one in 700 thousand. The risk of Alipay is close to the risk of meteorite falling, which is one in 100,000. Now it is the benchmark of internet financial security and the world's leading level. Shortly after I went to Ant Financial, I happened to go through the process of Double Eleven. In the first ten minutes, we have to process about 38,000 payments per second, which is the world's leading level, and we are still improving greatly every year. We used to rely heavily on foreign IOE systems (note: IBM servers, Oracle databases and EMC storage). Later, we found that Alibaba would go bankrupt in a few years with the increase of transaction volume and the simultaneous increase of cost, so we decided to go to IOE a few years ago and decided to invest in cloud computing and big data. Good results have been achieved in recent years, and some of our technologies are the best in the world.

The essence of finance is channel, data and technology, which can be used as a platform. It can be a platform for channels to build a platform for people to buy and sell things, such as wealth management products, or it can be a platform for channels. You can be a data platform, you can create data together, you can add data, do a good job of privacy protection, and add up to produce new financial products. Can be a platform for technology. Not every financial institution needs to do IT by itself. We have invested a lot of money, which is already a first-class level in the world and can help many financial institutions to do science and technology. We believe that cloud computing, big data and finance are actually the future of all finance. When we talk about internet finance, in fact, the relative strength of each institution is different. Some are strong in the internet, and some are strong in finance. So, maybe you can let others do technology, you do finance, or do it together. I will be your bottom layer and develop finance together. There will be various platforms with different positioning.