BBD Finance aims to set up and further develop new pricing and risk management systems and tools representing a dynamic financial service ecology to satisfy the needs ofthe modern information society. It consists of three departments: Capital Market Service Department, Credit Market Service Department and Big Data Information Network Department.
Based on big data and BBD HIGGS Credit developed independently by BBD, the department focuses on three elements of credit markets: enterprise credit inquiry, credit risk rating and corresponding credit services supporting the industry (incl. credit loan, pricing of credit derivatives and risk management service) Such public information as the Relationship Graph of the Enterprise, Key Performance Index, DNA Mapping of enterprise behavior and litigation information is also included. At present, our main tasks are as followed.
● The listed companies, a credit risk evaluation system and corresponding inquiry services have been provided, with a feature in the core indexes based on the DNA of enterprise’s commercial behaviors and the corresponding industry (credit) risk evaluation frameworks, in order to support securitized products and corresponding credit (CDS) derivatives and product designs.
● For the non-listed companies, we establish the corresponding Dynamic Due Diligence evaluation system and work out valuation methods, especially for the high-tech companies that rely more on technologies than on assets.
● Structured data (finance and financial affairs) and non-structured data are combined to set up industry risk evaluation system based on industry DNA features.
● Credit evaluation for medium- and small-sized companies is implemented. We conduct credit scoring and rating based on the quantitative analysis of big data during pre-loan investigation, while-loan risk management, and post-loan supervision. We assist banks in loan review and risk management during on-line and off-line activities of Internet finance.
● In combination with the products of Capital Market Service Department, we support financial entities in the following ways:
Business transactions and assets & finance management in the bond market
Enterprise credit services, especially the on-line and off-line financial dynamic (credit) evaluation systems and corresponding credit operation services;
Internet financial service and so on.
In order to help the financial service department upgrade its technologies and methodologies, Big Data Information Network Department lays more emphasis on the study of big data information network itself concerning finance and related industries. In virtue of financial theories, mathematics, neural networks, computer scienceand the corresponding big data algorithm, we put forward the DNA mapping of commercial behavior in accordance with the current big data. In addition, the department has its own BBD Big Data Postdoctoral Research Station, founded in collaboration with University of Electronic Science and Technology of China (Chengdu). At present, the major tasks of this department are as followed:
Contribute to BBD HIGGS Credit DNA mapping, especially
● The DNA mapping of commercial behaviors of medium and small enterprises
● The construction of KPI forsized enterprises
● The construction of industry risk evaluation KPI and other indexes
● The construction of the indexes for front-, mid-, and back-office financial dynamic (credit) evaluation system
● The construction of credit assessment index for the Internet finance sector
Contribute to the pricing and development of financial derivatives, especially
● The development of pricing and corresponding risk econometric models for convertible bonds
● The credit rating and pricing methods of securitized products
● The pricing, design and development of financial derivatives, such as CDS
● The development of pricing and corresponding risk econometric models for convertible bonds in the capital market
● The development of pricing and corresponding risk econometric models for OTC FOREXoption derivatives
● The construction of market KPI for staple commodities and the development of corresponding investment management econometric models
● The construction of market KPI for securities and funds and the development of corresponding investment management econometric models