Guotai Haitong: Large-scale model implementation in the banking industry, financial technology investments embrace new opportunities.

Guotai Haitong released a research report stating that financial technology has fallen in the past two weeks, with a high level of attention on AI in the upstream sector. Large models for data classification in the banking industry have been implemented, leading to an improvement in industry data governance capabilities. Marketing management measures have been introduced, raising compliance requirements for consumer finance and financial information service industries. The performance of financial technology-related targets such as financial information services has remained strong, while valuations are relatively low, leading the bank to be optimistic about future opportunities in financial technology. AI, as the driving force behind the upgrade of the financial technology industry, is reshaping the efficiency and experience of financial services throughout the entire process, bringing new opportunities for financial technology investment. The bank recommends core companies benefiting from various sub-sectors. Guotai Haitong's main points are as follows: The implementation of large models at the industry level promotes compliance management within the financial technology sub-industry. In terms of banking IT, Shanghai continues to expand the application of DIGIHUMAN for RMB cross-border payments. The first industry-level "data classification and grading" artificial intelligence large model for the banking industry has been released, which is expected to drive demand for commercial bank system upgrades. In terms of financial information services, the "Regulations on Financial Product Online Marketing Management" specify that licensed operations are becoming essential for the securities investment advisory industry, and the illegal promotion of stocks will be firmly resisted, benefiting licensed securities investment advisory institutions. In the consumer finance sector, non-licensed lending platforms that only provide referral services to funders are excluded from consumer finance businesses, while lending platforms that use their data and technology to provide risk control and other auxiliary services within the regulatory framework are more in line with regulatory requirements. In the third-party payment sector, the People's Bank of China revised the payment system management system, reflecting that innovation in payment infrastructure and regulatory upgrades are accelerating simultaneously. On the individual stock level, the commercialization of AI intelligence has deepened, and the upgrade of cross-border payments and overseas operations have diverged. Bairong Intelligence is advancing the large-scale implementation of "silicon-based employees" in scenarios like AI intelligent investment advisory; LIANLIAN has announced a long-term development blueprint, upgrading from a "cross-border payment expert" to an "AI-native global intelligent financial new infrastructure." In terms of performance and capital operations, Lakala Payment's transformation in cross-border and technology services continues to yield results; XTransfer has submitted an application to list on the Hong Kong Stock Exchange and strengthened the network and regulatory barriers of leading cross-border payment platforms through acquisitions to fill domestic payment licenses gaps. Investment recommendations AI, as the driving force behind the upgrade of the financial technology industry, is reshaping the efficiency and experience of financial services throughout the entire process, bringing new opportunities for financial technology investment. The bank recommends core companies benefiting from various sub-sectors: 1) Optimistic about the bank system upgrade demand brought by the DIGIHUMAN RMB upgrade in financial IT, combined with the enhanced quality and efficiency brought by large-model empowerment, related targets include Shenzhen Sunline Tech, Yusys Technologies, Sinosoft Co., Ltd., Shanghai Newtouch Software; 2) Optimistic about the development prospects of intelligent research and intelligent investment advisory in the financial information services industry, recommending leading companies in launching vertical models and related products such as JF SMARTINVEST, Hithink RoyalFlush Information Network, East Money Information; 3) Optimistic about the incremental space contributed by the scene expansion brought by DIGIHUMAN RMB, expecting scene expansion and scale enhancement to provide channel service fees for payment institutions, recommending Lakala Payment, YEAHKA, LIANLIAN devices and services that adapt to the functionality of DIGIHUMAN RMB; 4) Optimistic about the rapid implementation of scenarios such as intelligent customer service, intelligent marketing, and intelligent risk control in the consumer finance industry, recommending YIXIN. Risk warning: Risks related to the application of AI models; market volatility risks.