SHENZHEN, China, July 19, 2019 /PRNewswire/ -- At Ping An Group's inaugural Smart Ecosystem Conference, Lufax introduced a Know Your Intention (KYI) module to its intelligent wealth management interface.
Built upon Natural Language Understanding (NLU) and look-alike modeling, Lufax's KYI is able to better understand customers' needs and intents through textual and contextual analyses, and represents a major step toward a higher level of intelligence in financial and wealth management services.
The KYI module uses sentence encoding algorithm InferSent to drive machine learning. It combines traditional statistical methods such as N-gram, Bayes classifier, and HMM, and deep learning methods such as Seq2seq model for error correction. KYI proceeds with a sequence generated by the bi-directional feedback of Transformer algorithmic model to identify intentions and enable dynamic encoding, allowing better accuracy.
Human investment advisors have long played a sizable role in wealth management. But their inherent problems have also endured, namely that due to cost and other constraints relatively few investors actually enjoy one-on-one services, and that differences in competence and expertise inevitably exist. In addition, human investment advisors may be incentivized to recommend a product that earns them more commission but does not necessarily match the customer's risk profile.
The most widely available technological solutions within the industry also come with their own problems: product listings simply display the available choices, without taking into account each customer's individual situation, let alone the evolution through their lifecycle; while query-based search engines present results solely based on the criteria given by the customers, and therefore require a certain level of knowledge and sophistication on the customer's part to figure out the best search terms. Most technological solutions also do not provide investor education.
"We at Lufax strive to provide customers better services by understanding them better," says Jinliang Mao, chief technology officer of Lufax. "Our powerful technologies and financial DNA have enabled us to create a smarter solution in finding the best matches based on facts, data, and real customer needs."
Mao explains that Lufax's answer stands apart from the field of digital assistants and robo-advisors with its proprietary intelligent matching technology that bridges customer profile and product information. Instead of simply presenting the customers with a filtered set of products based on their search criteria, Lufax's Know Your Product (KYP), Know Your Customer (KYC), and KYI modules work together and feedback into one another in a closed loop to help identify the best match of customer and product.
The research team feeds reams of data into Lufax's machine learning framework, including real audio and textual data, as well as best practices curated from Lufax's top human financial advisors in the past year. The entire dataset encompasses 47 categories, some 7,000 products, 30 types of intentions, and dozens of scenarios. The results Lufax's intelligent wealth management interface reaches are not incentivized by profit, but are based on the preferences and needs of the investors, such as what kind of assets they already hold, and what will be the most optimal options with which to complement their existing portfolio. Lufax's intelligent wealth management interface not only presents the conclusion, but also shows the reasons behind it so investors can pick up investment strategies just by using the service. Instead of restarting a conversation every time, Lufax's interface remembers the conversation history, is capable of holding multiple rounds of back-and-forth conversation, and is sensitive to context. While even the best human investment advisors' efficacy is limited by their form and working hours, Lufax's intelligent wealth management interface brings its A-game 24/7.
On the customer side, Lufax's intelligent wealth management interface maintains a dynamic customer profile that evolves throughout the customer lifecycle. The new KYI module uses Natural Language Understanding to help identify customer intention and refine its algorithms. On the product side, Lufax's interface identifies the products that make most sense for customers based through intelligent risk matching, and create a closed-loop feedback between the customer and the product. "Thanks to its machine learning framework, Lufax's KYI module continuously improves upon use just by itself," says Mao.
Lufax has 41 patents and patents-pending for the latest iteration of its intelligent wealth management interface.
Lufax is a world-leading comprehensive online wealth management platform. The company leverages its global financial footprint and technological innovations in building its comprehensive risk management apparatus, and provides institutions, enterprises, and qualified investors with secure, professional, efficient services in financial transactions and information.