In Oct. 2020, Jack Ma’s speech at The Second Bund Financial Summit aroused widespread concern and intense discussions from all walks of life. Some of his views are still open to debate, but his point that “we must change the pawnshop thinking and rely on the credit system” is probably closer to the essence of finance. When I interned in the Information [University Name]agement Department of ICBC, I was tasked to label and classify the target customers with criteria such as age, personal assets, exchange for foreign currencies record, etc. Accordingly, our team used SAS-EG modelling to extract and clean the data in the database. We provided these data to the front office for use after data masking. During this experience, I realised the shortcomings of traditional financial institutions in Big Data application and credit system. The database owned by the bank can only cover users’ information in this bank, but as most consumers do not use only one bank, the analysis of existing data by traditional financial institutions is not comprehensive and correct. Financial technology companies such as Alibaba, Amazon, or Rakuten have multi-dimensional data for analysis. This is why traditional financial institutions still use the mortgage as its main way of loan business, while Alibaba, on the other hand, can use its platform to accumulate personal credit information to issue loans. In this sense, compared with traditional financial institutions, financial technology companies are closer to the essence of finance (Tanaka, 2020).

Although financial innovation has solved some problems in economic development to some extent, it will also bring potential risks. Risk prevention has always been a problem we need to pay attention to. In fact, Basel Accord III has made efforts to reduce bank risks; it will significantly reduce the possibility of a systemic financial crisis caused by a single problem in the financial system. And Regulatory Sandbox provided by FCA brings us new inspiration. The consultation published by FCA pointed out that financial services regulators must adjust their current working methods to balance the potential benefits of financial innovation and the traditional policy objectives such as financial stability and customer wellbeing (Binham, 2018). At the same time, Regulatory Sandbox provides a buffer for the market to understand new technologies and risks before they are officially launched into the market and urge enterprises to establish customer safeguards (Kelly, 2018). The invasion of big data analysis on personal privacy is also an unavoidable problem.

The transformation of the financial system is irresistible. My goal is to be one of the promoters of financial reform. At present, the potential risk of Internet companies represented by Ant Group entering the financial field is one of the problems to be solved. One of the most severe risks is the systematic risk that Ant Group may pose. Ant Group uses Asset-Based Securities to raise funds for lending. In a few years, Ant Group used a principal of more than 3 billion yuan to circulate loans 40 times, eventually forming high leverage hundreds of times (Huang, 2020). In addition, the customers of small and microloans provided by Ant Group are weak in risk-taking ability—these mortgage free loans attract a lot of low-income people and students. These factors can easily lead to the systematic risk of Ant Group and even affect the whole financial market (Calhoun, 2020). How to mitigate the risk while promoting financial development is a question left for all of us.

To achieve the ultimate goal of being one of the promoters of the financial reform, I have to have a global perspective. My primary and secondary education in China has cultivated my rigorous and tenacious learning quality. My bachelor’s degree obtained from the United States has trained my critical thinking, innovative spirit, and leadership skills. Studying at the [University Name] as an exchange student in 2019, I experienced the British view of the world economy, which triggered me at the academic level and provided me with the unique insights on economic theory research as the birthplace of modern finance. After finishing my undergraduate study, I chose to finish my graduate study in the UK because I believe my diversified educational background will further enhance my global perspective to solve ever-changing, global problems in the business world. So, I aspire to study at [University Name]. The [University Name]’s value, “[University Name]’s founding principles of academic excellence and research, aimed at addressing real-world problems, continue to inform our ethos to this day”, is what I aspire to. It will have a profound impact on my future. The school of [University Name]agement’s superior location can make me feel the atmosphere of the financial industry. I’m also interested in sessions and career events provided by the school of [University Name]agement. It will be helpful to cultivate my business thinking and apply for a job in the future. Moreover, MSc [University Name]agement programme provides international summer schools. I’m interested in HEC Paris. It’s a great opportunity to experience the commercial atmosphere of France and participate in the seminar.

Besides, I must be a good leader with financial knowledge. This is why I aspire to study in MSc [University Name]agement. I can get a solid [University Name]agement concepts in this programme. The Consulting Project is a good opportunity for me to have in-depth communication with the same outstanding partners and solve practical problems. As I studied finance at the undergraduate stage, I have a chance to study in the Finance Pathway. The modules provided by MSc [University Name]agement, such as Investment [University Name]agement and Corporate Finance can expand my arsenal of knowledge and further my research into the financial knowledge I need. The core module of International Capital Markets can lead me to deeply explore the international flow brought by economic globalisation. Looking at the financial actors in the market from an international perspective is helpful to achieve my ultimate goal. At the same time, I’m very interested in the financial crisis and regulation discussed in this class. As a leader committed to reform in the future, I aspire to enhance my decision-making ability. I like Decision and Risk Analysis because it discusses structuring decisions, risk assessment, etc. I can also bring new ways of thinking and apply them to the financial field from learning Creativity and Critical Thinking from Optional Modules. I’m also interested in Dr. Sarah Harvey’s research, such as “interdisciplinary and cross-functional teams integrate members’ knowledge to produce new ideas and make decisions.” I hope to learn the latest research results from Dr. Sarah Harvey, because the future financial industry is inseparable from big data and other technologies, and I will be in an interdisciplinary team in the future. With the working experience of Boston Consulting Group and in-depth academic research, Dr. Sarah Harvey will be a great lecturer to give me insights and inspiration in practice. All of these will help me achieve my ultimate goal upon graduation.

To be a competitive candidate, I worked hard to develop critical thinking and quantitative skills. By consulting the mainstream media’s comments and interviewing with the founder of OFO Sharing Bicycle, as well as statistical investigations through a questionnaire in social media, I studied the Sharing Bicycle industry in China and published an article entitled Thoughts about Sharing Economy from Sharing Bicycle, in which I concluded that the development of the sharing economy was not simply the sharing of new products but, more essentially, the sharing of various stock resources produced before. If the stock resources can be shared, it will be helpful for China to achieve carbon neutrality as soon as possible and achieve the goal of The Paris Agreement. I also learned some quantitative courses on the online course platform, such as Matrix Methods and Mathematical Analysis. I will continue to study quantitative courses, and coding courses before the programme starts to prepare for the coming challenges. I’m ready.

References

Binham, C. (2018). Regulators club together to form global ‘fintech sandbox’. Retrieved Dec. 9, 2020, from:

https://www.ft.com/content/ae6a1186-9a2f-11e8-9702-5946bae86e6d

Calhoun, G. (2020). Why China Stopped The Ant Group’s IPO (Part 2): Ant’s Dangerous Business Model. Retrieved Jan. 26, 2021, from:

https://www.forbes.com/sites/georgecalhoun/2020/11/16/why-china-stopped-the-ant-groups-ipopart-2-ants-dangerous-business-model/?sh=6e04367358bf

Chen, H. (2018). Fintech. Beijing, Beijing: Economic Press China.

Huang, Q. (2020). Structural reform: Problems and Countermeasures of China’s economy. Beijing, Beijing:

CITIC Press Group.

Kelly, J. (2018). A “fintech sandbox” might sound like a harmless idea. It's not. Retrieved Dec. 9, 2020, from:

https://www.ft.com/content/3d551ae2-9691-3dd8-901f-c22c22667e3b

Tanaka, M. (2020). New Financial Empire. Hangzhou, Zhejiang: Zhejiang People’s Publishing House.

Xie, Y. (2020). Is the Ant Financial Services Group too big to fail? Bloomberg Businessweek, 2020(19), 32.

Zhou, J. (2020). Potential risks and supervision of large Internet enterprises entering the financial field. Retrieved Jan. 26, 2021, from:

https://www.financialnews.com.cn/ll/gdsj/202011/t20201101_204322.html