AI Algorithms and Blockchain Payments -- Ant International's "Big Business in Fund Management"

``` Ant International, a subsidiary of Ant Group, is rapidly expanding in the low-profile yet lucrative field of global corporate cash management by leveraging AI algorithms and blockchain technology. According to Bloomberg on September 26, the company processed $1.1 trillion in fund flows last year, using technological innovations to reduce clients' daily cash occupation by up to 60% and significantly cut cross-border payment costs. The report also stated that Ant International's core competitiveness comes from two technological pillars: first, an AI model that predicts foreign exchange demand with 90% accuracy; second, a blockchain payment system that bypasses traditional banking networks. As Kelvin Li, General Manager of Platform Technology at Ant International, said: This enables companies to allocate funds in advance and optimize cross-border currency conversion processes. Ant International has already shifted about 35% of its cash management business to its self-built blockchain system, completing 300,000 transactions last year. More than 10 banks have signed up to connect to the system, including major financial institutions like HSBC and Standard Chartered. The report notes that Ant International’s revenue model is to take a proportion of the funds saved for clients. Currently, annual revenue is close to $3 billion. Potential barriers to further expansion include data sensitivity issues. AI Algorithm Model: All-dimension Prediction from Weather to Freight Bloomberg reports that the core technology of Ant International is an AI algorithm capable of predicting corporate currency demand. The system analyzes not only internal transaction data but also integrates multidimensional data such as freight rates, weather forecasts, market volatility, logistics bottlenecks, container traffic, and cross-border travel flows. The report points out that Kelvin Li’s team even incorporates tropical plant growth data into the model, since changes in tropical vegetation can be an early indicator of climate change, which in turn affects travel, payments, and foreign exchange demand. The system can make predictions down to the hourly level, for example, forecasting the number of people arriving at Hong Kong Airport in the next two hours and the proportion using taxis. The report states that a new version of the big data model released in 2024 achieved a major breakthrough, enabling hourly-level forecasts, processing more data, and better responding to sudden surges in transactions caused by unexpected events. Kelvin Li said that if current development continues, the system will be able to predict how many people will arrive at Hong Kong Airport and take taxis in the next two hours, or how many containers all shipping companies in Asia will need to lease next month. After joining Ant Group at the end of 2016, Kelvin Li was initially responsible for creating exchange rate services. At that time, Chinese outbound tourists’ use of Alipay surged, but global banks could not provide fixed 24-hour exchange rates at reasonable prices, and settlement times often reached two days or more. Kelvin Li and two junior data scientists built a real-time exchange rate infrastructure and predicted the Alipay usage and spending of Chinese tourists in Hong Kong. Blockchain Payments: Lowering Costs and Improving Efficiency by Bypassing SWIFT Traditional bank transfer fees are typically $10 to $50 per transaction, while Ant's blockchain system can complete a transaction in 30 seconds, at significantly lower cost. Bloomberg reports that traditional cross-border payments rely on the SWIFT system. Ant International had to pay $10-50 in bank fees per transaction, and banks usually only operate on business days. The blockchain infrastructure built by Ant International connects directly with major banks like HSBC and Standard Chartered. The report also states that the entire payment process takes about 30 seconds, after which the funds are paid to merchants in the local currency. Campbell Harvey, a finance professor at Duke University, said that alternatives to SWIFT "are extremely attractive to all large enterprises engaged in international business." Ant International has moved 35% of its cash management business to the blockchain platform, completing 300,000 transactions last year. The company works with Swift to ensure traceability and compliance with anti-money laundering regulations, with a goal this year to double blockchain transactions. Currently, more than 10 banks have signed on to the system. Business Model: Revenue Sharing Based on Amount Saved According to Bloomberg, Ant International promises clients that its technology portfolio can reduce corporate daily cash occupation by up to 60%. This is critical for companies, as lowering cash occupancy means more funds available for business expansion or revenue-generating investments. "Ant International's revenue model is based on sharing savings with clients. For example, if a client’s bank cost drops from $1 to a few cents using Ant’s service, Ant will take a proportion of the savings as a service fee." Current clients include three airlines such as AirAsia, the largest low-cost carrier in Asia. AirAsia Rewards CEO Aireen Omar said: The service greatly reduced costs. Previously, airlines usually had to add a 2% to 6% internal cost buffer into ticket prices to hedge against exchange rate fluctuations; using Ant’s service reduces the need for such hedging. It is worth noting that potential obstacles to Ant International’s expansion include data sensitivity issues. The software needs access to client internal data, and while Kelvin Li says the company deploys advanced encryption and privacy technologies to protect sensitive information, data security remains a major challenge for all tech companies. Robert Hillard, Asia Pacific Consulting Leader at Deloitte, said: "Both companies and regulators have huge concerns, especially when it involves consumer and financial data." Andy Mok, senior research fellow at the Center for China and Globalization, said: By expanding into obscure but indispensable sectors, Ant could quietly occupy a meaningful market share under the radar. Boring means less hype, being overlooked means more room for growth. As cross-border transactions continue to grow, competitors such as Amazon and JPMorgan Chase are also developing similar AI capabilities and blockchain payment systems. Risk Warning and Disclaimer Markets have risks, and investments should be made cautiously. This article does not constitute personal investment advice, nor does it take into account the individual investment goals, financial situation, or needs of any particular user. Users should consider whether any opinions, views, or conclusions in this article fit their specific circumstances. Investment decisions are at your own risk. ```