Digital Transformation of Asset Management Makes Core System More Effective
Sizzling News

As an important participant in the domestic non-performing asset industry, local asset management companies (AMCs) play an important role in maintaining financial stability and resolving financial risks, especially through the acquisition and disposal of non-performing assets of local financial institutions. The application of financial technology has greatly improved AMCs and they have better played their role as the "financial stabilizer" with their own core competitiveness.

Sunline's asset core comprehensive management platform adopts technologies such as micro-service architecture, front-end and back-end separation, as well as low-code development to achieve efficient management and disposal of non-performing assets which will help AMCs achieve more with less in the process of fully realizing digital transformation.

Transformation is imperative with the dual drive of internal and external pushes

Between December 2021 and January 2022, two heavyweight guidance documents on the digital transformation of banks, the People's Bank of China's "Fintech Development Plan (2022-2025)" and the China Banking and Insurance Regulatory Commission's on the " Digitalization of the Banking and Insurance Industry” have been issued successively, providing guidance and requirements for the entire industry to adapt and transform in lieu with the digital economy. Leveraging the power of financial technology has become an important direction for enterprises to implement digital development strategies.

As the scale of non-performing assets of banks has risen in recent years and local government debt has increased progressively, the state has successively approved more local AMCs. Compared to the four major AMCs, local AMCs have more advantages in disposing of small, large, and scattered non-performing assets, with more flexible and targeted disposal methods, and better collaboration with local governments and judicial departments to improve disposal efficiency.

Referring to the development route of the four major domestic AMCs, after the completion of the disposal of policy-related non-performing assets assigned by the state, they all chose the diversification strategy as the way out for their commercial transformation. From the perspective of operating results, diversification has enriched AMC's non-performing asset disposal methods, which has greatly promoted AMC's return to its main business of non-performing assets and improved its ability to dispose of non-performing assets.

One of the AMC decided to establish a core business system for asset management and use financial technology in order to develop a diversified business strategy, comply with market trends and relevant policy requirements, meet higher standards for market development, company management, and future business development as well as promote the comprehensive promotion of its own digital transformation through:

(1) An integrated business system

Comprehensively sort out the business processes and scenarios of each line of the company, rationalize the relationship between optimized process operations, risk management, and decision analysis, as well as design a multi-level system function system.

(2) Integrated asset data

Integrate multi-line, multi-level and multi-dimensional data, centralize data collection, establish asset standards, and solve the problems of missing data, confusing definitions, and repeated entry.

(3) Meeting the internal control requirements

Realize the management and control requirements of the company's centralization, differentiation, refinement, and specialization.

(4) Meeting external regulatory requirements

The new regulatory regulations are gradually refined and implemented to meet the gradual advancement and evolution of the regulatory model from static to dynamic, from local to overall as well as from results to processes.

(5) Improving the level of informatization construction

Complete system construction, with the help of the application of new system technology, promote the construction of system informatization.

Leveraging on the strength that doubles quality and efficiency of the new system

With its in-depth interpretation of policies, deep understanding of the industry and business needs, strong technical capabilities centered on microservices architecture, as well as innovative solutions and product services that help customers adapt to future markets, Sunline was granted the project in April.

After the project team settled in, whether it is demand change or product optimization, they have always adhered to the principle of efficient execution, attention to detail, as well as providing careful and meticulous services to ensure that the project is delivered on time. After half a year of demand research, system design, product development, the project was successfully delivered and launched in November 2021.

The new generation core business system adopts technologies such as microservices architecture, front-end, and back-end separation, and low-code development to lay a solid foundation for customers' digital transformation.

(1)  Microservice Architecture

Features continuous integration (CI), continuous deployment (CD), agility, scalability, faster delivery, higher developer productivity, as well as easier debugging and maintenance.

(2) Front and rear separation

It has the characteristics of completely liberating the front end, improving work efficiency, further clarifying the division of labor, improving local performance, reducing maintenance costs, reasonable design, and enhancing user experience.

(3) Low code development

It has the characteristics of lower cost and efficiency, lower technical threshold, faster integration, and response.

The asset management core business system performs standardized management, recording, and archiving in the system through business online, refines the entire business process into multiple modules, integrates data to generate reports, and provides data reference and decision-making for the management. At present, the system has successfully launched 150+ customers, 100+ debtors, 50+ assets, and 60+ projects, providing comprehensive services and support for customers' daily operations. The new core system can be flexibly applied to multi-scenario businesses to meet product innovation.

Through the construction of the core business system, it helps customers to realize the structuring, processing, refinement, standardization, and digitization of comprehensive business, which effectively supports the development of customers' business, enhances their market competitiveness, responds to the policy needs of the country's digital transformation, and satisfies their future development needs.

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