The article is from WeChat public account: Pivot Finance (ID: zhidian_zazhi) , author: Jiang Li, from the title figure: Oriental IC
Although the fire of the currency circle has “extinguished”, the blockchain technology has a vague tendency. And trillion-level supply chain finance is considered by many financial people as the “killer application” of the blockchain.
As we all know, large companies often occupy a strong position in the supply chain, and small, medium and micro enterprises upstream and downstream have to operate by means of advances, prepayment, etc., and the pressure on capital turnover is huge.
This is not a good sign.
Imagine if upstream component manufacturers, especially those with core technologies, had to reduce production capacity due to funding issues, it would likely affect the entire supply chain.
Conversely, once rapid financing is achieved, upstream manufacturers can supply in sufficient quantities to solve the problem of insufficient capacity utilization; downstream distributors can quickly distribute goods and seize the market.
An enterprise on a chain is equivalent to “on a boat”. Only you and me are good, and everyone can be good.
From this perspective, supply chain finance, as a tool for providing financing to small, medium, and micro enterprises in the supply chain, is not only conducive to improving the competitiveness of the entire chain, but also helping China to leap from a manufacturing power to a manufacturing power.
So what is the origin of supply chain finance? What is the status of this businessCompared with cities with comparable economic scales, Wuhan has taken a leading position in the total financing volume of the China Requisition Accounts Receivables Financing Service Platform in recent years, which is higher than that of Chengdu, Nanjing, and Xi’an.
Blockchain technology brings more opportunities
Analyzing the future trends of supply chain finance requires attention to two key elements.
The first element is the application of more advanced technologies.
Zhongbang Bank President Cheng Feng told the fulcrum financial reporter that the blockchain technology is decentralized and difficult to tamper with counterfeits. “We are also actively promoting the application of this technology in supply chain finance.”
Blockchain can make supply chain finance more permeable.
The service objects of traditional supply chain finance are mainly Tier 1 suppliers or Tier 1 distributors. Blockchain technology helps to achieve “multiple penetrations”, and can serve second-, third-, and fourth-tier suppliers and distributors with stronger financing needs.
The development of blockchain technology has also given more business opportunities to supply chain finance.
Whether it is banking, insurance, or Internet giants such as BAT, or leaders in manufacturing industries such as Foxconn and Huawei, they are trying to develop supply chain finance with blockchain technology.
In January 2019, Ant Financial launched the supply chain financial product “Ant Dual Link”, and its business logic is to use blockchain technology to focus on core companies and promote accounts payable financing business.
The second key element is the combination with application scenarios.
In this regard, the online merchant bank launched by Ant Financial has already tried.
E-commerce banks use Taobao and Tmall in the e-commerce field as “core companies” in supply chain finance. Based on Taobao and Tmall procurement systems and related data, they serve a large number of small, medium and micro enterprises that lack traditional pledges.
Simply speaking, if a Taobao shop owner selling clothing can obtain a credit loan through an online merchant bank, upstream merchants can consider the services such as inventory pledge and prepayment receivable provided by the online merchant bank.
According to the same logic, an industrial Internet platform with a larger single transaction amount and a longer-term and stable order is also the fertile ground for supply chain finance.
Zhongbang Bank was born in Hubei.Focus on the Industrial Internet scene. Zhuo Zhilian, a subsidiary of the bank’s major shareholder Zhuoer Holdings, owns multiple B2B platforms such as China Agricultural Network, Huasuhui, Zhuo Steel Chain.
Jianshuiloutai first month, based on the advantages of shareholders, Zhongbang Bank can and products and services embedded in the user interface of these platforms, improve customer acquisition efficiency. When credit is granted, the platform data can also be smoothly accessed.
In addition, Zhuo Zhilian also owns a large number of offline entities, including the Hankou North International Commodity Trading Center, and has created a “drow cloud warehouse” warehousing service and a “zhaoji delivery” logistics service.
When traditional financial institutions develop inventory pledge business, offline inventory supervision is a big problem. Zhongbang Bank cooperates with Zhuoer Yuncang and Zhuojiji offline to conduct more efficient management.
“Even if there is a project default, relying on the B2B management platform, Zhongbang Bank has the ability to handle pledges.” Xu Zheng, head of the supply chain business management department of Zhongbang Bank, told the fulcrum financial reporter.
It is worth noting that no matter the financing of the warehouse financing, the confirmed warehouse financing or the accounts receivable financing, the concepts are more complex, many companies cannot understand, and the product managers of some banks may not be able to figure it out.
Of course, customers do n’t need to understand the detailed logic behind the business, they just need to complete the financing conveniently.
However, in order to better conduct business, banks have made many innovations in supply chain finance to make it more grounded.
Taking the “chain lending” launched by Zhongbang Bank as an example, this supply chain financial product has formulated a relatively simplified operation process: you can get as much information as you provide with information and assets.
The lender can obtain a certain amount of credit by providing a personal mobile phone number, identification number, as well as corporate tax information and business license code. Want to increase the amount of credit, supplement invoices, orders, inventory and other information.
As of the end of December 2019, “Zhonglian Loan” has accumulatively loaned more than 4 billion yuan to various small, medium and micro enterprise customers, and accumulated more than 240 customers.
The 2018 China Supply Chain Finance Industry Research Report published by iResearch shows that the size of China’s supply chain financial market in 2018 is expected to reach 2 trillion yuan.
Participants in the territorial market, blue ocean competition, more advanced technology and closer application scenarios will have greater opportunities for nuggets.
Related policies related to supply chain finance (Fixed by financial journalists):
The article is from the WeChat public account: Pivot Finance (ID: zhidian_zazhi) , author: Jiang Li