David Wirt: For Internet finance, it is never easy to start on a path
David Wirt, Vice President of Global Services in Asia Pacific & Japan of EMC Corporation, recently received an interview with GMW.cn on Internet finance at the World Internet Conference held in Wuzhen, east China's Zhejiang province, Nov. 20, 2014.
GMW.cn: Hi Mr Wirt, thank you very much for taking the time. It's always great pleasure to have you here. So let's just start the interview and here is my first question: since 2013, Internet finance has boomed, which brings both praises and disorders. To promote some development of Internet finance has been part of Chinese government report. What merit do you think can be helpful to achieve this goal?
David Wirt: One is that I think it will never be easy to start on a path, in any technology adoption, there are always gonna be difficulties. So I think what's happening in China is fairly personal with me because we have multiple bank accounts in China. I live in Singapore, we manage them over the Internet.
Things actually are relatively smooth. You know, there are always room for improving accessibility, availability, regulatory, as well as bank to audit some rules. So I think what's gonna happen is very similar to other economies where the use of the Internet to allow banking to financial transactions are progressing rather naturally and progressively, because China's challenges, like every other governments' challenges, regulatory famous in some place, are really around people going to branches and doing banking. So here is an example impacts me personally, one of the requirements one of the banks we have requires my wife and I have to show up at the branch once a year to prove that we exist.
So I think the regulatory schemes and bank policies will change over time to allow and adopt roundly. Right now the good news is a regulator (regular) should be conservative to make sure that bad things don't really happen. So you haven't heard major incidents that causing problems. So sometimes slowing cautious progression is actually a beneficial thing. You can watch a little hard to avoid mistakes, this is what I would put.
GMW.cn: Thanks. What is the greatest challenge EMC is faced with in the Chinese market? And how will EMC tackle with it?
David Wirt: I think the biggest challenge is the biggest chance in almost every business inside China. China is not one entity integrated itself. I love the example that I lived in China for most of the years, I used to make people understand China outside of China from a gentleman running credit card operation in one of the four big banks. In a question I posted to him was “well, don't you just use people from HK and Taiwan to help build your credit card system? His answer was no, actually getting experts from the U.S. was better. In his analogy was that each problem in China is very different, so from east to west, the biggest challenge you have from business perspective is adopting local practice and fitting in.
Our perspective then is trying to grow outside in the other parts of China. Our business, we do every well with heavy concentration of IT spending, so in Beijing, Shanghai, Guangzhou, basically eastern seaboard. So our challenge is to grow outside and adopt in more far business mile surrounded. So that's the first barrier I would say.
Second barrier is somewhat from technology perspective. We have to kind of go through a localize some of our products to meet the market needs a little bit better, so capacity requirements, price points, etc, things like that. So I would say it's similar challenge to almost every business in China to expand, one is to understand China is not one single entity, and the second is understanding there are some unique requirements in the market place. And btw, we haven't modified our products other than for China, those products, because the advances of the market place.
GMW.cn: Thank you. In the era of big data, data value is highly concerned. Do you have any suggestion for financial institutions to tap data value better? Will schemes offered by EMC be effective solutions? Thanks.
David Wirt: Yes, it’s a common challenge across financial services in general, but particular in Banking. If you think of typical retail bank you and I will use, when you go in, the systems are very fragmental internally, so you have a credit card system, you have a core banking system, or you do your deposit withdraws.
They have many other financial instruments, by some of which they develop themselves, and by some of which they are on behalf of their parties. So what the challenge the bank has is understanding you as a consumer and your patterns, because all those systems are disconnected. So the concept of data lake, which will become predominance in big data, is the solution of customers to striving towards.
They try to pull information in a real-time basis smooth the time. From all those systems in aggregate and together, it is that they can profile you. They understand your habits and what they can do better from you based on your spending patterns and purchasing patterns.
If you think your credit card is hugely valuable，set of information come from that. They know exactly what you buy, they know stores you go to, they know everything about you, frequency ever. But they are not connecting that to other financial products for helping you cross soon. So from consumer perspective, that’s one of the thing banks and financial institutes go after.
But they also have challenge internally the big data they can’t address, which around capital reliccrimes. If you help them understanding their risk profile of an operation risk, what they are able to do is minimizing the amount of cash, because banks by major are conservative. And they are able to use that money to go make more loans in general more rabid. Because the bank system model is that you give them the money, they take the money and they invest in something else with a high rate return.
They pay you back with interests for giving them money. So the more they can use to lend out, the more revenue they can generate, the more they can go and do things with inside organization benefit. Not just the bank, but also consumers.
GMW.cn: Last but not the least, we know that EMC collaborated closely with high-education institutions in China. For example, it’s establishing a training center with Fudan University, and EMC classes at Tsinghua University. What do cooperation like this bring to EMC and how EMC will make progress in this field?
David Wirt: Well, one thing EMC is striving for is that we want to be a great place to work, and part of being a great place to work is investing communities that you are operating. So examples you are talking about are just part of DNA of the company. We want to contribute society. We want to be part of the place we operate, and we want be part of that organization, with inside each of those plus what you are talking about like Fudan and Tsing University, etc.. We worked with hundreds of universities in China as an example with 2,500 globally. We call it EMC academic clines.
EMC provides education to our customers, and we do it two things that we are unique to our competitors in market place. We have we called open course ware which you were talking about, which we provided to hundreds of universities in China and allow them to use course ware in developing their own courses to educate. Example you use in Fudan and Tsinghua Universities are a little bit unique and sense we make more commitments about those.
For example, Tsinghua University is part of our overall donation that we have ten million dollars to try response graduates through programs and scholarships, in specific areas and traits around dam. So science and technology, engineering and math which are the type of graduates we look for. So those graduates may never work for EMC, but we want to do it a far industry in the endship umcious company in long term. So it is all about is investing. Through things like this EMC with recently recognize on the top 25 companies in the world as great place to work. We came to No. 18. So we are very proud of it, because this is one of the things when we go and track college graduates today, they want to know the company they are going to work for. They want to know and they want to invest the community, and they want to make it a difference of what is going on.
(Interviewed by Zheng Yi; transcribed by Liu Shimeng & Zhang Zhou)
David Wirt is now Vice President of Global Services in Asia Pacific & Japan of EMC Corporation. He focuses his practice on insolvency, bankruptcy, and business reorganization matters.More>>
- "One is that I think it will never be easy to start on a path, in any technology adoption, there are always gonna be difficulties."
- "So sometimes slowing cautious progression is actually a beneficial thing. You can watch a little hard to avoid mistakes, this is what I would put."
- "I think the biggest challenge is the biggest chance in almost every business inside China. China is not one entity integrated itself."
- "So I would say it's similar challenge to almost every business in China to expand, one is to understand China is not one single entity, and the second is understanding there are some unique requirements in the market place."
Consultant producer:Zeng Fanhua
Designer: Zhou yueqin
Art Editor: Li Wenfeng
Executive Editor:Liu Shimeng