Editor's note: In recent years, the Cpc Central Committee and the State Council have attached great importance to the development of inclusive finance. As an important and effective force in local financial supply, small and medium-sized banks are particularly critical in the supply side of inclusive finance. How to create differentiated development advantages in the fierce competition, and achieve their own development and growth while doing a good job in inclusive finance? How to actively embrace digital technology, innovate service models, and improve service efficiency? How can financial inclusion achieve sustainable business model development? It has become an important issue facing small and medium-sized banks. China Net Finance launched a series of high-end interview columns on "The Way of Inclusive Finance for Small and Medium-sized Banks".
In recent years, under the guidance and promotion of policies, financial institutions with the banking industry as the main body have made remarkable achievements in the development of inclusive finance. The 14th Five-Year Plan for National Economic and Social Development of the People's Republic of China and the Outline of Long-term Goals for 2035, released in March this year, clearly stipulate that China should improve a modern financial system with high adaptability, competitiveness and inclusiveness, and build an institutional mechanism for finance to effectively support the real economy. This means that the era of normalization of financial inclusive services has arrived, and how to achieve the commercial sustainability of inclusive finance through the implementation of differentiated business strategies with regional characteristics is an important issue that has always been facing all small and medium-sized banks.
"Backed by the strong shareholder resource background of China Minmetals Group, a central enterprise, and the geographical advantage of Mianyang, the only science and technology city in China, our bank has natural advantages and experience in deeply cultivating Mianyang and supporting the local real economy, and has a great competitive advantage in business and product innovation, business development and approval efficiency." Through these grasps, at present, our bank has achieved complementary and dislocation competition with large banks. He Miao, chairman of Mianyang City Commercial Bank, said in an exclusive interview with a financial reporter of China Net recently.
In He Miao's view, in the current fierce competition in the inclusive financial market environment, small and medium-sized banks need to be clearly positioned. Mianyang City Commercial Bank will adhere to the market positioning of "becoming a partner bank for small and medium-sized enterprises, a caring bank for urban and rural residents, a bank with community service characteristics, and a bank for local economic assistance", clearly respond to the current changes in the banking industry and regional competition with digital transformation, fully use digital means to innovate inclusive financial products and service models, better adapt to the current business development trend, and realize the core requirements of returning finance to its roots and serving the real economy.
Product customization with the help of fintech
In recent years, various banking institutions have increased the innovation of small and micro financial products and services, and the sense of financing for small and micro enterprises has been greatly enhanced. According to data from the Banking and Insurance Regulatory Commission, as of the end of April this year, the balance of loans for small and micro enterprises nationwide was 45.94 trillion yuan, of which the balance of loans for inclusive small and micro enterprises was 16.9 trillion yuan, a year-on-year growth rate of 31.8%, 19.8 percentage points higher than the growth rate of various loans; the number of households with loan balances was 27.9601 million, an increase of 5.5066 million households year-on-year.
"Vigorously developing inclusive finance is an important development direction and important embodiment of commercial banks to optimize customer structure, enhance financial technology technology, and fulfill social responsibility." At the same time, commercial banks are also the main force in practicing inclusive finance and the main provider of financial resources. He Miao told the financial reporter of China Net that Mianyang City Commercial Bank has experienced problems such as imperfect institutional mechanisms, serious homogenization of product and service models, and insufficient customer viscosity, resulting in the loss of high-quality customers in the process of developing inclusive finance. In response to these problems and deficiencies, the bank has made great efforts in product and service innovation.
He Miao believes that the key to inclusive finance is based on the real economy, the private economy and the "three rural areas", with the help of financial technology, to achieve accurate customer docking, product customization; in the process of developing inclusive finance, pay special attention to the development of green finance, and become the 5th in the country, the 2nd in the west, and the 1st equatorial bank in Sichuan.
(Photo note: Mianyang City Commercial Bank business outlets photos, the picture is authorized by Mianyang City Commercial Bank China Net)
According to reports, in recent years, Mianyang City Commercial Bank has actively innovated credit product and service models, focusing on the two characteristic brands of "small and micro finance" and "scientific and technological integration", highlighting the direction of professional and characteristic operation, strengthening professional services, increasing product innovation and research and development, actively and continuously promoting small and micro financial services such as "silver tax interaction", "government-bank cooperation", "no repayment renewal" and other small and micro financial services, strengthening the integration of small and micro finance and "Internet +", and developing online small and micro credit products; with the help of "Zhongzheng Accounts Receivable Service Platform". Combined with IT technology, promote the development of supply chain financing products to alleviate the financing difficulties and expensive financing problems of small and micro enterprises.
With the "aquaculture E-loan" small and micro financial service product launched by Mianyang City Commercial Bank using financial technology, through the full online operation, the customer experience is greatly optimized, the time cost of enterprise financing and the operation cost of the bank are reduced, so that enterprises can get real benefits. According to the data, by the end of 2020, the "aquaculture E-loan" supply chain products have accumulated 3757 transactions, with an amount of 691 million yuan, which has greatly improved the credit coverage of small and micro enterprises, private enterprises and "three rural areas".
Explore long-term mechanisms for inclusive finance
In order to achieve the long-term sustainable development of financial services for small and micro enterprises, it is the key to coordinate efforts from both internal and external aspects. Establishing and improving the mechanism of "daring to lend, willing to lend, being able to lend, and meeting loans" for small and micro enterprises is the key to solving the endogenous power of banking services for small and micro enterprises, which puts forward requirements for the professional service capacity building of banks.
According to He Miao, in 2020, Mianyang City Commercial Bank will continue to urge branches to strengthen inclusive small and micro financial services through system documents and product support. The "Opinions of Mianyang City Commercial Bank Co., Ltd. on Financial Support to Stabilize Enterprises and Maintain Employment and Strengthen the Financial Services of Small and Medium-sized And Micro Enterprises" was formulated and issued, which stipulates that enterprises that have difficulties in capital turnover when resuming work and production due to the impact of epidemic prevention and control, have development prospects, have markets for products, and actively help themselves should not blindly draw loans, break loans, and suppress loans. Specifically:
First, according to the actual situation, by reasonably adjusting the loan interest rate and settlement cycle, changing the repayment plan, extending the loan, renewing the loan without repayment, etc., we can escort small and medium-sized enterprises to overcome the impact of the epidemic disaster.
The second is to do everything possible to promote the overall comprehensive financing cost of small and micro enterprises to reduce, for small and medium-sized micro and small customers who are truly affected by the epidemic and temporarily have financial difficulties, and customers in the inclusive field whose loans cannot be returned when they are due, through various measures such as renewing loans, extending loans, adjusting installment repayment plans, and renewing loans without repayment, we will further reduce the pressure and cost of the continuation of funds for small and micro enterprises.
Third, for loans that implement deferred principal and interest payments, adhere to substantive risk judgments, do not lower the loan risk classification due to epidemic factors, and do not affect the credit records of enterprises.
The fourth is to continue to improve the pricing mechanism of loan interest rates for small and micro enterprises, on the basis of maintaining the balance of "quantity" and "price", in accordance with the principle of commercial sustainability and "guaranteed capital and small profits", reasonably determine the level of interest rate pricing, and fully consider the use of the People's Bank of China's small reloan funds, special refinancing funds and policy bank refinancing funds, and government financing guarantee companies to provide guarantees when pricing inclusive small and micro enterprise loans, and establish a differentiated pricing mechanism. Strictly implement the requirements for fee reductions and exemptions related to small and micro enterprises, actively implement various preferential measures for small and micro enterprises' interests and fees, and prohibit unreasonable charges.
Fifth, strictly implement the requirements of "seven prohibitions" and "four disclosures." Strengthen the implementation of the "two prohibitions and two limits" provisions, clean up unnecessary "channels" and "bridges", and effectively reduce the additional cost of loans for small and micro enterprises.
According to the data, at the end of 2020, Mianyang City Commercial Bank issued a total of 4,947 loans to small and micro enterprises, amounting to 31 billion yuan; the cumulative amount of first loans issued to 197 small and micro enterprises totaled 2.1 billion yuan, effectively alleviating the problem of financing difficulties and expensive financing for small and micro enterprises; the bank's deferred principal and interest payment policy has cumulatively supported 682 credit customers, with a cumulative credit support amount of 5.3 billion yuan.
(Editor-in-Charge: Yi Wei)