#Power of Businesses l 2021-04-19
Now it’s time to take a look at a Korean business bringing about changes in the global economy with some new ideas.
The company we’re going to introduce today is Aizen Global, which develops financial services based on artificial intelligence or AI. Let’s hear from company CEO Kang Jung-seok(강정석).
The company was established in 2016 as a developer of AI-powered financial solutions. I thought a large part of banking services would be automated. While attending an MBA program in the U.S., I studied data-driven marketing. I found this subject very interesting and learned that it was common in the U.S. to make decisions based on data. While studying AI algorithms, I also found that AI was closely related to credit scoring designed to manage financial risks and the use of data for the analysis of social trends. Using relevant technology, I thought it would be possible to create automated financial systems. With this vision in mind, I set up the company.
Aizen Global seeks to bring innovation to the financial industry by developing AI platforms specialized for financial data. Kang created the company to realize his vision to incorporate AI technology into finance.
AI in finance may remind people of automated chatbots or robo-advisors, which are financial services operated by computer programs. But Aizen Global focused more on providing financial services more efficiently and facilitating the decision-making process.
In times of crisis, such as the pandemic or a financial crisis, financial institutions may suffer from losses. If that happens, can their systems be altered with little to no human supervision? Our solution can automatically stop loans and reduce risks in particular segments. It can accurately analyze data and convert the result into terms that can be understood by financial institutions. It also measures and manages risks. By introducing this system, financial institutions can secure customers, develop products, manage risks and create additional revenue.
The company’s AI-based financial solution, named ABACUS, can detect unauthorized card transactions, examine loan regulations at banks and classify insurance claims. The AI engine has learned a huge amount of data about clients such as banks, card companies and insurance firms. While handling tasks every day, it is advancing even further. To catch any illegal card transactions, it is necessary to look into every single record of transactions. But using ABACUS, the result will be shown right away.
ABACUS can also be used for marketing. Through this financial AI solution, banks and insurance companies may provide customized interest rates or financial products tailored to individual consumers. In doing so, financial institutions can improve work efficiency and profitability as well.
Financial services can now be provided even to those who live from hand to mouth. People who can’t afford to pay medical bills might be provided with credits, based on various data. A vast amount of data can identify potential risks more precisely. Indeed, some industries that remained unpopular in the past now shine, thanks to AI. AI technology and financial expertise comprise the two major axes of this AI financial solution.
The company was able to develop this unique AI engine in collaboration with professors of the AI Institute of Seoul National University and the Korea Advanced Institute of Science and Technology. At present, the solution is used by major financial groups in Korea, including Woori Bank, Woori Card, Hyundai Card and Samsung Fire and Marine Insurance.
Aizen Global’s technology has also gained recognition outside Korea. In 2018, the company was included in the list of top ten fintech companies selected by Standard Chartered Bank in Hong Kong and took first place at the Hong Kong Fintech Week. In 2020, it ranked second in the Global category for the FinTech Awards announced by the Monetary Authority of Singapore. The company is recognized as a leading developer of AI-powered financial solutions in the Asian market.
On the back of its technological prowess, Aizen Global is aiming to advance into the Southeast Asian market, with its AI banking service already launched in Vietnam and Singapore.
Aizen Global’s AI lending platform called CreditConnect enables financial companies to find customers, develop products, manage risks and operate systems. In foreign countries like Vietnam, Indonesia, Thailand, Japan and Russia, it runs in the same way as in Korea. The platform has already started operation in Korea and Vietnam.
It will be launched in Indonesia before long and preparations are underway in Thailand. We’re also planning on exploring the market in Malaysia and Japan over the mid to long term.
CreditConnect is an AI-based platform designed to provide credit services to customers. It connects financial institutions with data platforms that have loyal customers, such as online shopping, healthcare and education. While the customers can receive loan services quickly and easily, banks can secure their own platform clients.
In addition, Aizen Global is building a win-win business model in cooperation with the Korean financial industry, which seeks to expand its customer base in Southeast Asia. The company analyzes customer data in the Asian region to help Korean financial institutions to advance their services and explore the overseas market.
The phrase, “AI for better finance,” represents our goal. Technology can create a basis, on which financial services are provided to the underprivileged. Financial solutions using AI technology can be applied globally, regardless of the region, which I think is a great advantage. We aim to grow into a global firm to provide data-driven financial services to various parts of the world.
With the wave of digital revolution sweeping the financial industry in the post-COVID-19 era, the combination of financial data and AI technology is expected to create a great synergy effect. But it is still a new path that no one has ever walked. As Korea’s representative AI financial platform developer, Aizen Global is driving digital innovation in the financial sector. The company seeks to use data and AI to benefit people and make the world a better place to live.