In recent years, ICBC has used “Big Data” technology to innovate financial services for small and micro enterprises (SME), and continued to expand funding channels by turning “dead data” into “living capital”. For example, the “Easy Loan” corporate cards designed for SME merchants, have disbursed RMB 5 billion in loans, and helped more than 10,000 SME merchants solve their funding needs by the end of 2014 when the product was rolled out for six months.

According to an ICBC official, in response to the SME financing difficulties of information asymmetry between banks and enterprises, lack of effective mortgages, and insufficient guarantee, the Bank has worked hard to analyze the real transaction data of these merchants and managed to turn such data into appraisable value. The “Easy Loan” corporate card for SME merchants is a micro-credit loan product designed for SME merchants having POS acquiring business. Unlike conventional SME loan products, this product requires no guarantees or mortgages by leveraging big data, and allows installments and revolve of credit line, which makes it a perfect match to the funding demand of SME merchants featured by lack of guarantee to secure short-term, frequent and urgent funding.

Regarding credit approval and risk management, by mining, consolidating and analyzing the POS transaction data of these merchants, the Bank can verify the stability of their business operations and cash flow generation capability, and determine the appropriate lines of credit. Meanwhile, through real-time monitoring of merchants’ POS transaction data, it can promptly identify risks and take control measures, which overcomes the risk identification delays arising from the aforesaid information asymmetry.

In terms of loan extension and utilization, the Bank has resorted to“lending upon swiping and immediate use” based on the funding features of SME merchants. Moreover, this product features a swift application process and accurate credit extension, and provides diverse services including payment by installment, fund transfer and customized 2-24 installments. In addition, merchant cardholders can use their credit lines on a revolving basis without having to re-apply for loans every time, making it most applicable to the routine goods purchases of catering, hairdressing, general merchandise, manufacturing and wholesale businesses, supermarket chains and privately-owned gas stations, as well as small-sum office expenditures.