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On March 31, Liao Min: Full Utilization of Financial Data for Digitizing the Financial System

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On March 31, Liao Min, Deputy Director of the Office of the Central Financial and Economic Commission and Deputy Minister of Finance, stated at the \”Financial Infrastructure and Fi

On March 31, Liao Min: Full Utilization of Financial Data for Digitizing the Financial System

On March 31, Liao Min, Deputy Director of the Office of the Central Financial and Economic Commission and Deputy Minister of Finance, stated at the “Financial Infrastructure and Financial Services in the Digital Era” roundtable at the 2023 annual meeting of the Boao Forum for Asia that the financial industry has a huge amount of data, and we need to make good use of data, conduct data management, and data governance to unleash the potential of financial data. He said that the digitization of the financial system or finance is an ecosystem that needs to be adaptive and resilient.

Vice Minister of Finance Liao Min: In the future, China will build the infrastructure of digital finance, including digital currency and computing power

In today’s digital era, there is a vast amount of data that is being utilized in different industries. The finance industry is no exception, as it too requires data to enhance its operations. Recently, Liao Min, Deputy Director of the Office of the Central Financial and Economic Commission and Deputy Minister of Finance, shared his thoughts on the use of data in the financial sector. He stated that the financial industry has a significant amount of data that needs to be managed and governed to unleash its full potential.

Understanding Financial Data Management and Governance

The financial sector has been generating data for years. However, most of this data was scattered and not of much use in decision-making processes. This scenario changed with the advent of digital technology, enabling the collection and processing of data for better analysis and insights. Data management involves collecting, storing, analyzing, and interpreting data. On the other hand, data governance outlines the processes and policies for managing data effectively across an organization.

Need for Proper Data Management

Data management plays a critical role in financial institutions. It helps to identify fraudulent activities and mitigate risks. Data analytics is key in identifying patterns and trends, allowing financial institutions to make informed decisions. Besides, analyzing customer data provides insights to improve customer experience and increase customer retention. Furthermore, managing data effectively can lead to cost savings and revenue growth.

Adaptive and Resilient Financial Ecosystem

Liao Min stated that digitizing the financial system is an ecosystem that must be adaptive and resilient. The financial sector has seen various forms of disruption, such as the fintech revolution, which has displaced banks as the primary source of financial services. Digitization is changing customer expectations, and the financial industry must adapt to remain relevant.
Moreover, the data-driven ecosystem requires resilience in managing potential data breaches and hacks. With increased data collection and analytics comes the risk of data privacy violations. Liao Min emphasized the need for financial institutions to embrace resilient data governance and management systems.

Future Outlook on Digitizing the Financial System

Going forward, the use of data in the financial system will continue to evolve. Liao Min noted the need for financial institutions to be proactive in adopting new technologies, such as artificial intelligence and blockchain, to improve the accuracy and efficiency in data management, analysis and governance. Ultimately, the digitization of the financial system has the potential to enhance the customer experience, increase revenue, and reduce operational costs.

Conclusion

In conclusion, Liao Min’s speech at the “Financial Infrastructure and Financial Services in the Digital Era” roundtable at the 2023 annual meeting of the Boao Forum for Asia emphasized the importance of data management and governance in the finance sector. Financial institutions need to be proactive in adopting new technologies and enhancing their data management systems to continue to be adaptive, resilient, and relevant in today’s digital age.

FAQs

1. What is data management in the financial sector?
Data management involves collecting, storing, analyzing, and interpreting data for decision-making purposes in the financial sector.
2. How can data management benefit the finance industry?
Data management can benefit the finance industry in several ways, including risk mitigation, fraud detection, improved customer experience, cost savings, and revenue growth.
3. What is the future outlook on digitizing the financial system?
The future outlook on digitizing the financial system involves adopting new technologies such as AI and blockchain to improve data management, analysis, and governance for enhanced customer experience, reduced costs, and increased revenue.

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