Supply chain finance is the breakthrough to solve the financing difficulties of SMEs

Producer: Wu Yunfeng

Producer: Hu Wen

Master pen: Bao Fang

Editor: Jiang Pingbo

UI design: Song Peng

Web page production: Sheng Weiwei

  • Ye Wangchun
Guest introduction

    Ye Wangchun

Ping An Financial Accountant Chairman and CEO

Core point

Supply chain finance is the breakthrough to solve the financing difficulties of SMEs

Supply chain financial development needs to achieve three-way synergy

Financial technology empowers small and medium banks to reduce costs

Financial technology subverts traditional supply chain financial model

Export leading supply chain financial solutions

Put financial technology talent training in an important position

"Four bright spots" to meet the massive demand for supply chain finance


Supply chain finance is the breakthrough to solve the financing difficulties of SMEs

financial:In addition to policy support, what role can the financial technology sector play in solving the financing problems of SMEs?

Ye Wangchun: SME financing difficulties, expensive financing, and slow financing have become a world-class problem. Now 60%-70% of SMEs are unsecured, unsecured, have low credit, and are not supported by the bank. These companies can only choose other channels for financing, but often the funds obtained under this channel, Interest is 2-3 times that of banks; as many small and medium-sized enterprises are eager to make capital turnover, the urgency of financing is very high, even if it is too high cost.

Supply chain finance provides many conveniences for small and medium-sized enterprise loans in terms of expenses and mortgage guarantees. At present, many banks use big data platforms to provide loans to small and medium-sized enterprises through auditing corporate taxation, business administration, UnionPay payments, business owner information and other credit data. In addition, some financial technology service companies also have small credit-based, Short-term, high-frequency, unsecured loans.

The traditional model cannot solve the existing difficulties. Supply chain finance is an important breakthrough to solve the financing problems of SMEs. It can be said that financial technology can effectively transform the difficulties and pain points of traditional supply chain finance and subvert the traditional supply chain financial model. It is the development goal of the financial technology industry to make better products based on the current business status and credit.


Supply chain financial development needs to achieve three-way synergy

financial:In terms of promoting the development of SMEs in supply chain financial services, how do the three parties work together?

Ye Wangchun:The first is the China Small and Medium Enterprises Association, which has 200,000 SME members who can connect with a large number of core enterprises and play a pivotal role between core enterprises and SMEs. For example, in the past, core enterprises were not eager for financing needs, and they were not willing to endorse small enterprises in the upstream and downstream industry chains. Small enterprises, lack of awareness of supply chain finance, could not enjoy the benefits brought by supply chain finance. At this time, the SME Association can bring together large enterprises and small enterprises to form an ecological circle to solve everyone's problems.

For small and medium-sized banks, supply chain finance has a market of 27 trillion yuan. In the past, large banks have carried out supply chain finance business. Because of the credit risk problem, small and medium-sized banks are afraid to lend money because of the high cost of control, and they can only watch the opportunity slip away. We have created this intelligent supply chain financial ecosystem, and through our scientific and technological strength to improve the risk control level of small and medium-sized banks, solving the problem of risk control is equivalent to reducing the risk of lending by small and medium banks, and directly helping small and medium banks to reduce costs.

It can be said that the financial account pass successfully subverted the traditional supply chain entry mode. We use leading financial technologies such as artificial intelligence, blockchain and cloud computing to combine previously fragmented core enterprises, small and medium-sized enterprises, small and medium-sized banks, and governments, associations, think tanks, etc., to break down their information islands and achieve a win-win situation. .


Financial technology empowers small and medium banks to reduce costs

financial:Many big banks are also doing supply chain finance. What are the characteristics of this model? What are the advantages of small and medium banks in supply chain finance?

Ye Wangchun:State-owned banks and stock banks mainly do suppliers in the supply chain finance business, which is upstream and does not do downstream. The first characteristic is that there is no supplier involved in the inner layer; secondly, the “upstream-oriented” model will put a lot of pressure on downstream risk control.

Small and medium-sized banks basically have no supply chain finance. First, there is no system or business. Second, core enterprises have been taken away by big banks. Even with core enterprises, they rarely give small and medium banks a right to determine the risks of uncertainty.

Financial technology companies must empower small and medium-sized banks to help small and medium-sized banks start with stock loans and then make incremental loans. At present, the industry provides stock loan detection services for small and medium-sized banks. For example, a bank has a loan of 10 billion in the past. The bank gives the platform a desensitization list. This list can be divided into four categories through platform testing. One category can continue to increase loans. Keep existing loans, one class to reduce some quotas, and the other to be compressed. We believe that with the advantage of technology, more small and medium-sized banks can reduce the cost of providing supply chain financial services to SMEs.


Financial technology subverts traditional supply chain financial model

financial:Different industries and different scenarios, their systems are differentiated and dispersed, and what role does financial technology play in supply chain finance?

Ye Wangchun:It can be said that financial technology has subverted the traditional supply chain financial model. The first is to accumulate a large amount of data in the early stage. We know that accumulating data is a very painful process. Because to make loans to enterprises, we must first make an enterprise access model. The entire business process of each type of enterprise is basically the same, but the details of the process are different. The scoring system that peers make is also different.

Then in terms of credit construction, we have established five major positions including business owner information, product information, logistics information, contract transactions, and performance information. In the anti-fraud system, a large number of cases are included. Before the loan, the bank will crash into the library. If the loan company has a credit problem, it will enter the blacklist when it hits the library.


Export leading supply chain financial solutions

financial:What efforts has CEL made in expanding the overseas market of supply chain financial technology?

Ye Wangchun:Supply chain finance goes international, it needs to localize domestic products, translate all systems into English, and has a large workload. It also needs to comply with local regulatory policies and user habits. At present, some companies have established branches in Southeast Asia and other places.

Many technologies are applied in the practice of entering overseas markets. At present, big data applications are more, especially cross-validation, through multi-party cross-validation to determine the authenticity of trade. The use of technology is to control risk, blockchain technology is, big data cross-certification is also.

Since its establishment three years ago, Financial Accounts has exported our leading solutions overseas while occupying the mainstream of domestic financial markets. Now we have established branches in Hong Kong, Singapore and Indonesia, and established laboratories in the United States to successfully promote Hong Kong. The HKMA Trade and Economics Platform went online and entered the Southeast Asian market in an all-round way.


Put financial technology talent training in an important position

financial:Supply chain finance is hailed as the next trillion market. What do you think about talent training?

Ye Wangchun:The talent gap in the supply chain industry is very serious. If there is no talent, this will not be done. There are two types of talents in our company. One is financial and the other is technical. We put financial technology talents in a very important position. For example, we have reached cooperation with companies and universities in the United States, Singapore, etc., combining cutting-edge technologies with landing cases to conduct joint training of talents.

Not long ago, we partnered with Wharton and Two Sigma to launch the Gama 'Finance Technology New Stars' program, which organizes financial technology training for outstanding students in universities and young practitioners in the financial technology industry.


"Four bright spots" to meet the massive demand for supply chain finance

financial:What are your expectations for the future development of supply chain finance?

Ye Wangchun:At present, domestic supply chain finance should be said to be booming and in a period of market outbreak. It is estimated that the total demand for supply chain finance will reach 27 trillion by 2020. In the past, the main players will be banks and factoring companies, and the future will gradually become more diversified. .

Supply chain finance now has 13 trillion financing needs, but traditional supply chain finance has only solved one-third. Therefore, I hope to solve this problem by establishing four highlights, connectivity, mutual trust, penetration and ecology through the ecosystem of supply chain finance.

The first is the connection. Traditional supply chain finance is an information island. We hope to build an intelligent platform through big data technology to achieve multi-party connectivity, including core enterprises, small and medium-sized enterprises, banks, logistics and warehousing, etc., to form a network.

The second is mutual trust. Mutual trust is how banks trust companies, which requires cross-validation through multidimensional data. We hope to trace the traces through blockchain technology and verify the authenticity of the transaction. It is very important to establish mutual trust. Once mutual trust is established, we can build an asset pool on the platform. This financing process is fast and the cost is very low, which is very convenient.

The third is penetration. Penetration is to penetrate the core company's credit all the way to the end enterprise. The more the small enterprises at the end, the more difficult it is to finance and the more expensive it is. We use electronic vouchers to penetrate this credit to the very end. For example, the core enterprise has given 10 million credits to the first-tier supplier. This 10 million may be divided into several secondary suppliers. The secondary suppliers have been going Next, through the electronic voucher has been penetrated to the extreme, allowing small businesses to enjoy the treatment of Tier 1 suppliers.

The last is to build an ecosystem, including companies, banks, and regulatory units. The industry has reached a cooperation agreement with the customs, to do blockchain, big data pilot, to solve the tariff problems of enterprises by doing some tariff loans, import and export insurance, and improve the speed of customs clearance.

If these four aspects can be achieved, then traditional supply chain finance will be subverted.

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