Search
Close this search box.

We are creating some awesome events for you. Kindly bear with us.

ASTRI Leverages “Federated Learning” Tech to Facilitate Credit Scoring

The Hong Kong Applied Science and Technology Research Institute (ASTRI) joins forces with tech-embracing companies to leverage a privacy-preserving technology, called “Federated Learning”, to develop artificial intelligence (AI) models and output in the form of encrypted parameters that serve as a reference for financial institutions to conduct comprehensive credit analyses for micro, small and medium-sized enterprises (MSMEs) to help them get access to financing.

ASTRI’s partners include two major global banks, one of which is the first virtual bank serving MSMEs in Hong Kong; a Hong Kong restaurant guide and review platform; and a logistics and freight pricing platform.

Unlike traditional machine-learning methods, Federated Learning does not require data to be transferred directly to a central database, thus protecting privacy and mitigating the risk of data security breaches. Data partners and financial institutions can establish common credit evaluation models by combining their encrypted parameters.

During the process, the collaborators do not have access to any consumer personal data, nor are the identities of the enterprises identified. Only when an enterprise applies for financing and is undergoing authorisation can the designated financial institution obtain the relevant parameters and conduct a credit evaluation.

The Chief Executive Officer of ASTRI noted that the agency leverages Federated Learning technology to provide alternative data for credit assessment while protecting privacy and data security to help financial institutions reduce the cost of vetting and approving loans for MSMEs and help enterprises get financing.

It is expected that ASTRI will collaborate with more organisations to promote the implementation of open data. The Federated Learning technology will also effectively promote the development of other Fintech applications and support the government’s efforts to drive smart city transformation.

As data partners, the restaurant guide and review platform and the logistics and freight pricing platform will leverage big data, including various restaurant popularity metrics, the transaction status of consignment merchants, and business operation status, to identify the elements affecting the credit risks of enterprises from alternative data by using AI and Federated Learning.

Through this, a model will be trained to derive parameters to assist credit scoring. No information about the enterprises will be transferred from the data partners to other institutions.

With the authorisation of the enterprises applying for loans, the two banks can refer to data providers’ assessments of an enterprise’s competitiveness in its industry and its credits status, which is determined using the enterprise’s operation parameters through the model developed to process an MSME loan application.

During the loan-approval process, financial institutions will be able to make more reliable credit assessments based on the projections of their own credit evaluation models and the assessments of their data partners. The first phase of the models developed using Federated Learning is expected to be in use within 12 months.

The Deputy Chief Executive of the first virtual bank serving MSMEs in Hong Kong noted that with the AI models, the firm can access customers’ comprehensive operational data in real-time to help realise financial inclusion by expediting loan approvals and meeting the financing needs of SMEs.

The CEO and Acting CTO of the Hong Kong restaurant guide and review platform stated that they expect to use Big Data and Federated Learning to train AI models and develop professional industry parameters to make credit applications from small and medium-sized restaurant partners faster and easier to quickly meet their operational needs.

The Co-founder and Director of the logistics and freight pricing platform noted that they are collaborating with ASTRI, using the Federated Learning technology to strictly protect privacy.

The massive data on the platform is used to train AI models to help to build industry parameters, which helps SMEs apply for trade financing and credit with ease, and effectively addresses their financing needs.

PARTNER

Qlik’s vision is a data-literate world, where everyone can use data and analytics to improve decision-making and solve their most challenging problems. A private company, Qlik offers real-time data integration and analytics solutions, powered by Qlik Cloud, to close the gaps between data, insights and action. By transforming data into Active Intelligence, businesses can drive better decisions, improve revenue and profitability, and optimize customer relationships. Qlik serves more than 38,000 active customers in over 100 countries.

PARTNER

As a Titanium Black Partner of Dell Technologies, CTC Global Singapore boasts unparalleled access to resources.

Established in 1972, we bring 52 years of experience to the table, solidifying our position as a leading IT solutions provider in Singapore. With over 300 qualified IT professionals, we are dedicated to delivering integrated solutions that empower your organization in key areas such as Automation & AI, Cyber Security, App Modernization & Data Analytics, Enterprise Cloud Infrastructure, Workplace Modernization and Professional Services.

Renowned for our consulting expertise and delivering expert IT solutions, CTC Global Singapore has become the preferred IT outsourcing partner for businesses across Singapore.

PARTNER

Planview has one mission: to build the future of connected work. Our solutions enable organizations to connect the business from ideas to impact, empowering companies to accelerate the achievement of what matters most. Planview’s full spectrum of Portfolio Management and Work Management solutions creates an organizational focus on the strategic outcomes that matter and empowers teams to deliver their best work, no matter how they work. The comprehensive Planview platform and enterprise success model enables customers to deliver innovative, competitive products, services, and customer experiences. Headquartered in Austin, Texas, with locations around the world, Planview has more than 1,300 employees supporting 4,500 customers and 2.6 million users worldwide. For more information, visit www.planview.com.

SUPPORTING ORGANISATION

SIRIM is a premier industrial research and technology organisation in Malaysia, wholly-owned by the Minister​ of Finance Incorporated. With over forty years of experience and expertise, SIRIM is mandated as the machinery for research and technology development, and the national champion of quality. SIRIM has always played a major role in the development of the country’s private sector. By tapping into our expertise and knowledge base, we focus on developing new technologies and improvements in the manufacturing, technology and services sectors. We nurture Small Medium Enterprises (SME) growth with solutions for technology penetration and upgrading, making it an ideal technology partner for SMEs.

PARTNER

HashiCorp provides infrastructure automation software for multi-cloud environments, enabling enterprises to unlock a common cloud operating model to provision, secure, connect, and run any application on any infrastructure. HashiCorp tools allow organizations to deliver applications faster by helping enterprises transition from manual processes and ITIL practices to self-service automation and DevOps practices. 

PARTNER

IBM is a leading global hybrid cloud and AI, and business services provider. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Nearly 3,000 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and business services deliver open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, responsibility, inclusivity and service.