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Supply Chain Finance Helps ICBC Serve Small Enterprises
 

In recent years, in response to the transformation and upgrade of business model from single operation to supply chain operation, ICBC has established a supply chain financial service system covering on-line and off-line operations to improve the Bank’s financial services for small and micro enterprises. As at the end of June 30, 2017, ICBC developed more than 3,200 supply chains and provided funding of more than RMB 800 billion to over 11,000 small and micro enterprises, with the financing amount increased eight times over the last five years. Online supply chain finance is one of the most popular products among small and micro enterprises. Over the past five years, ICBC has provided online supply chain finance of more than RMB 30 billion for over 1,000 small and micro enterprises around FAW-Volkswagen Automotive Co., Ltd., Huawei Technologies Co., Ltd., Chery Jaguar Land Rover Automotive Co., Ltd., China State Construction Engineering Corporation (CSCES), Affiliated Hospital of Jilin University, China Mengniu Diary Co., Ltd., and Tewoo Group.

The director of ICBC Internet Finance Center said that by employing a series of technologies related to Internet, big data, IOT, the Bank’s online supply chain finance presents unified trade flow, logistics and fund flow in the supply chain to customers, integrating risk assessment and credit control for single enterprise into the risk management for the whole supply chain. The Bank has revitalized current assets including inventory, receivables to provide diversified financial services with lower access threshold for small and micro enterprises at different stages of growth. ICBC’s online supply chain finance provides small and micro enterprises with whole-process services, ranging from financing application to drawdown. All procedures can be done through online banking with real-time crediting and no requirement for written materials, which has significantly improved business processing efficiency and reduced financing costs. Meanwhile, through various smart risk control approaches such as online product monitoring and online receivables/payables control, the online supply chain finance works out in business risk prevention, keeping the risk control of non-performing loan (NPL) ratio at zero.


(2017-10-19)
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