In recent years, Industrial and Commercial Bank of China (ICBC) has continued to leverage information and big data technology in the credit risk area, and gradually achieved intensive, smart and three-dimensional management of credit and investment risks through “people + intelligence” mode. ICBC has so far used big data technology to conduct real-time scanning monitoring

An ICBC official said that prevention of credit risks used to mainly rely on credit personnel’s experience and ex-post risk prevention and control methods. However, in the context with credit risk spreading across markets, regions and systems, traditional methods face problems such as information asymmetry, lengthy transmission chain and lack of forward looking. In response, ICBC has leveraged its information technology strength and credit management experience to set up in 2014 the first specialized credit risk monitoring body in the industry – Credit Risk Monitoring Center. Integrated with analysis, monitoring, early warning and management of credit risks, the Center has established credit risk monitoring procedures by means of big data analysis technologies, covering analysis modeling, real-time monitoring, risk early warning, inspection and control, tracking & supervision, feedback optimization and evaluation & assessment. Through these procedures, ICBC can carry out real-time monitoring, early warning, tracking and control of risks related to financing customers and products, and credit institutions and personnel, achieving systematic monitoring, making risk management more prompt and forward-looking, and elevating the whole Bank’s credit management to a new height.

Regarding risk monitoring and early warning, on the basis of effective integration and deep mining of internal and external data, ICBC has analyzed the changing pattern of financing customer related risks, developed and launched a series of credit risk monitoring and early warning models, and built a multi-dimensional (involving credit grant, asset quality, daily operation and basic management) daily monitoring indicator system for credit risks to monitor credit and agency investment businesses and promptly expose and control business risks. In addition, ICBC has stepped up efforts in in-depth analysis and early judgment of internal and external situations. Special analysis and improvement are made for key areas with high risks, helping guard against system risks.

The official adds that to further enhance credit operation and risk management across the Bank, ICBC will accelerate the building of the IT-based credit management mode supported by artificial intelligence, mobile internet, deep learning and other information technologies, and embed data model support into the whole credit process to form an efficient credit risk management system, securing the whole Bank’s credit and investment businesses.