Source: China Banking and Insurance News
Reporter: Yu Han
Editor's note: At present, the demand for financial services in employment and entrepreneurship is becoming more and more intense for new citizens. How can financial institutions meet these needs of new citizens and help them find employment and start businesses? This topic explores this in depth.
Employment and entrepreneurship are the main themes of the process of new citizens taking root in the city. The 2021 government work report proposes that during the "14th Five-Year Plan" period, we will further promote the new urbanization strategy with people as the core, accelerate the urbanization of the agricultural transfer population, and increase the urbanization rate of the permanent population to 65% ... A large number of new citizens will pour into the city, and the demand for financial services for new citizens in terms of employment and entrepreneurship will become more and more intense.
How to make new citizens really "come in" and "stay"? How can banks innovate to support new citizens to find employment and start businesses? Recently, Changjiang Hai, the bank of Xinnet Bank, was interviewed by China Bank insurance news and shared his views.
Jiang Hai said that the financial service needs of new citizens present typical characteristics such as "small amount, high frequency and short financing", which is like "dancing on the tip of the needle" for banks, which is an extreme test of the bank's "micro-carving" skill.
Refined operation is the key:
China Banking and Insurance News: At present, what are the shortcomings of banking institutions in meeting the financial needs of "new citizens" for employment and entrepreneurship? What challenges does this pose for banks?
Jiang Hai: In March this year, the Banking and Insurance Regulatory Commission and the People's Bank of China jointly issued the "Notice on Strengthening the Financial Services of New Citizens", and the systematic deployment of the work of improving the financial services of new citizens has a strong timeliness and necessity, which specifically mentions two key words - availability and convenience.
From the perspective of risk identification, in the past, financial services for new citizens not only had common pain points in inclusive finance, such as difficulty in risk identification, lack of collateral, and unstable work, etc., but also brought many new challenges due to repeated fluctuations of the epidemic, and many new citizens faced problems such as "no savings in the past", "no income in the current period" and "limited activities".
From the perspective of credit characteristics, based on credit big data, the financial service needs of new citizens show typical characteristics such as "small amount, high frequency, and short-term financing", and the average loan amount may be only a few thousand yuan, which may bring cost challenges to some financial institutions with higher operating costs.
From the perspective of user experience, in the traditional microfinance model, new citizens from the preparation of application materials, offline queuing, approval materials, loan issuance, this set of processes will produce a long waiting time, resulting in poor customer experience.
In short, to meet the small fragmented lending needs of new citizens, for banks, it is like "dancing on the tip of the needle", which is an extreme test of the "micro-carving" skill, that is, the daily refined operation ability.
Improve the performance of digital services:
China Banking and Insurance News: Combined with the existing product and service capabilities of financial institutions, on the supply side, how to carry out targeted product and service innovation and strengthen financial support for new citizens to start businesses and employment?
Jianghai: According to statistics, 1,798 banking and insurance institutions have provided a total of 28,800 financial products to cover the new citizen group this year, which fully shows that all parties pay attention to tapping the needs of new citizens, because this is a vast financial blue ocean.
Of course, in such a large number of financial products and services, it is not easy to achieve characteristics, repeat customers and long-term sustainability, which is a test of the innovation and service capabilities of financial institutions on the product side. In particular, to meet the financial needs of new citizens' employment and entrepreneurial customers, it is particularly necessary to test the three capabilities of "agility, precision and sustainability".
"Agility" means to be fast, and in terms of the employment relief of new citizens, it is necessary to solve their urgent needs, and it is not possible to do it slowly and step by step; "Precision" means to accurately discover the needs of subdivided customer groups; "Sustainable" means to make new citizens repeat customers and let the service flow for a long time.
For example, how to accurately determine the financial needs of new citizens? This spring, Xinnet Bank's credit big data found that in the big data of epidemic-related cities, the number of loans and the total amount of money showed an upward trend, and at the same time, the proportion of silent customers, the proportion of first loan customers, the same day withdrawal rate of first loan customers and other indicators showed an upward trend, which reflected the certain difficulties of new citizens in work and life.
The construction industry is an important employment direction for new citizens. Based on this big data indicator, we quickly adjusted the direction of credit delivery, and put most of the new credit lines into the most directly affected groups and industries affected by the epidemic in the epidemic-related cities, solving the financial needs of new citizens to resume work and production and life relief, and solving the urgent needs of a large number of new citizens.
China Banking and Insurance News: In terms of employment innovation for new citizens in financial services, there are a series of pain points and difficulties, how to exert the power of financial technology and use digital technology to enhance financial service capabilities?
Jiang Hai: From a practical point of view, to do a good job in this work, we need to return to the basic point of "digital native" and do a good job in multiple dimensions such as service innovation, product innovation, cooperation model, and talent training.
First of all, banks should improve their online service capabilities, adopt a full-line contactless service model, break the geographical and time restrictions of financial services, and users only need mobile phones to handle related business online.
Secondly, in the background to create a real-time digital risk control platform, the front desk launched a digital inclusive product matrix, the development of "retail credit + small and micro enterprise loans" dual business layout, the new citizen group market changes, credit needs, through big data to real-time discovery, through product upgrades to respond in real time.
Third, considering that there are still many "blank areas" in the financial services for employment and entrepreneurship of new citizens, banks should take the initiative to go out and cooperate with industrial chain enterprises to support new citizens' employment and entrepreneurship. At present, Xinnet Bank has cooperated with a farmers' market to provide value-added financial services such as unified online settlement for market merchants, and also laid the foundation for the creation of financial value for merchants' business data.
Finally, talent is a key ingredient. Taking Xinnet Bank as an example, at present, 70% of the employees of Xinnet Bank are IT engineers, data scientists and other professional talents, and the next step will continue to increase the attraction and training of talents.
In short, it is necessary to pay deep attention to the "nerve endings" groups of the real economy that have not yet been covered by digital inclusive finance, and continue to explore and improve the service mechanism of the new citizen long-tail customer group.
Building a risk fence:
China Banking and Insurance News: The financial needs of new citizens as a whole have the characteristics of small amount, high frequency and weak credit, which requires more meticulous control of related risks. In this regard, how should banks optimize the risk control model and enhance their ability to "dare to lend, be willing to lend, and lend"?
Jiang Hai: The key to solving financial problems is often outside finance, and intelligent risk control and digital technology are the core essence of forging this key.
The financial service needs of new citizens show the characteristics of "small, high-frequency, short-term financing", and they often lack collateral and stable deposits, to solve the industry problem of "high operating costs and difficult risk identification", we must rely on financial technology, and only through digital technology can this matter become logical, technically feasible and economically feasible. From our own practice, we must first build our own fences and strengthen the identification ability of financial anti-fraud.
With the popularity of financial services for new citizens, professional fraud groups are also trying to fish in muddy waters, so it is necessary to ensure the safety of lending through a variety of means such as list management, feature management, behavior patterns, etc., relying on a combination of professional anti-fraud teams and digital risk control.
To attach great importance to the application of innovative technology, full use of big data, artificial intelligence and other technical means, so as to effectively solve the risk identification problem of "credit reporting white households", at present, Xinnet Bank has submitted more than 400 technical patent applications, and more than 100 patents have been approved.
In addition, in order for commercial banks to "dare to lend, be willing to lend, and will lend", policy support is indispensable. For example, the data of local governments, industry organizations and related enterprises need to be opened up, so that banks can obtain more dimensions and more effective credit data.
In the face of the financial blue ocean of new citizens, banks themselves need to maintain an open mind, continue to expand the market cake, achieve multi-party cooperation and win-win results, and ultimately improve the happiness index of new citizens and help the national economic development.