Bank Of China To Allocate Over $70 Billion On Blockchain And Fintech Revamps

China’s commercial, government-run bank intends to allocate billions of dollars for its ambitious fintech revamps.

bank-of-china

Bank of China announced yesterday, August 9, that it will “greatly” increase its investment in innovation and research and development, according to an article by The Paper, a local news organization.

Three Platforms

bank-of-china-logoThe article, originally written in Chinese, stated that the aforementioned bank held a press conference yesterday, wherein Liu Qiuwan, its Chief Information Officer (CIO), said that they will be including the development of science and technology into the new phase of strategic planning, and will be focusing on creating three major platforms, namely: cloud computing, big data, and artificial intelligence, which are scheduled for completion this year.

Simultaneously, its non-financial transactions and minicomputer applications are continuously being migrated to the X86 platform.

Liu revealed:

“Currently, Bank of China has been applying technology in the pilot blockchain of 12 projects, mainly focusing on data sharing, cross-border payment, digital currency, digital bills, etc., according to the statistics of the global blockchain enterprise patent rankings in 2017. Bank of China has 11 patent applications for blockchain, ranking 20th in the global business and ranking first in the domestic banking industry.”

For the bank’s ambitious projects to be completed, it is willing to appropriate more than 1 percent of its operating annual income, which in 2017 is about $70.9 billion.

Ironing Out

In terms of fintech, the bank can already be considered to be well ahead of others. According to reports, it already uses real-time analysis, big data, and artificial intelligence (AI) technology, paired with internal and external data through a detailed analysis of its clients’ accounts and channels.

Since 2017, the bank has already performed hundreds of millions of transactions that have been tracked and intercepted, wherein thousands of fraudulent transactions have been intercepted to prevent unnecessary losses.

However, the bank does not intend to stop there.

According to the article, the bank intends to use robots to iron out some unstructured data and link risks to social network issues or any other Internet-related network in that regard. “Through structured warnings such as courts, industry and commerce, quality inspection or bond registration, we can also link [the said issues] to the upstream and downstream of the enterprise,” explained Guo Weimin, Bank of China’s General Manager for Network Finance Department.

Interested in finding out more about China’s blockchain ventures? Check out these articles on our cryptocurrency news site.

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