Xiaosui noted that by the end of 2022, foreign banks had set up a total of 41 foreign-funded corporate banks, 116 foreign bank branches and 135 representative offices in China, with a total of 911 operating institutions and total assets of 3.76 trillion yuan.
Relatively speaking, foreign banks have obvious advantages in cross-border trade finance and cross-border supply chain finance, but on the whole, there is more room for development in domestic supply chain finance and digital services.
At the same time, Xiaosui noted that some foreign banks actively adapt to the wave of domestic digital services, optimize mechanisms and service models, promote the construction of digital supply chain platforms, and actively connect with core enterprises and third-party platforms, which can still effectively expand their service scale in this field. Based on this, we can further expand our advantages in cross-border financing by cultivating our customers.
01 Standard Chartered Bank: Standard Chartered Link and Open Platform
Xiaosui noted that Standard Chartered Bank's supply chain finance business has developed rapidly in recent years, which Xiaosui believes is mainly due to its emphasis on standardized digital supply chain financial products and its openness to domestic technical cooperation. Relatively speaking, standardized digital debt certificates are easier to promote and copy, and more likely to become a powerful tool for banks to expand customers, risk control and serve customers.
Relying on Standard Chartered News Company, Xiaosui noticed that since last year, Standard Chartered Bank has served core enterprises including Meituan, Sichuan Commercial Investment Group, Qixin Stationery, Silja and so on.
Standard Chartered Bank pays attention to the construction of an open supply chain financial platform, and Xiaosui noticed that Standard Chartered Bank has further expanded its platform coverage radius by docking and cooperating with third-party platforms such as Lianyirong, China Enterprise Cloud Chain, and Simple Exchange: In 2020, Standard Chartered joined hands with China Enterprise Cloud Chain to complete the first online loan for supply chain financing, and in the same year, Standard Chartered Bank and Lianyirong completed direct connection. In August 2021, Standard Chartered and TCL Simple Exchange successfully completed the first supply chain withdrawal transaction by realizing end-to-end direct bank-enterprise direct connection (Host2Host), which also marked the official launch of the direct connection cooperation model of TCL Simple Exchange, the first self-owned supply chain financial service platform between foreign banks and large core enterprises.
Standard Chartered Bank also actively connects its own platform with the self-built supply chain financial platform of core enterprises, and opens up financial capabilities to the supply chain financial platform of core enterprises: In the first half of 2021, Standard Chartered became the first foreign cooperative bank of CIMC's credit supply chain finance platform, and completed customized technical solutions with CIMC Factoring's own supply chain finance platform and its technical partners, becoming CIMC's first cooperative foreign currency bank.
02 DBS Bank: DBS e-Link
In 2021, DBS launched 45 new companies and more than 5,000 suppliers and distributors through its digital platform, including leading logistics companies in China. DBS launched five partnership platforms in 2022 with combined digital and supply chain finance capabilities, mainly in sectors such as e-commerce, logistics and commodities. By the end of 2022, the digital platform would benefit more than 15,000 MSMEs in Asia, and DBS conducted 90% of its supply chain finance transactions in Asia.
In addition, DBS has also developed DBS GBA One-Stop Access, including DBS eConnect to complete cross-border payments without leaving home, DBS e-Link, an online supply chain financing platform, IDEAL for corporate online banking that handles daily banking services remotely, Suixing Global Exchange for online cross-border payments in 100 foreign currencies around the world, and DBS Express for fast online cross-border remittances. Through IDEAL, a one-stop online banking platform, businesses can see their global bank accounts at a glance.
In August 2021, DBS Bank acted as the agent payment bank of Datang Mobile, empowering Datang Mobile and its upstream suppliers through innovative service models to support the healthy and stable operation of the entire supply chain. The service solution has been recognized by customers and upstream and downstream suppliers through innovative points such as efficient supplier joining model, self-selected financing term model, and flexible interest bearing model.
In late September 2022, DBS Bank (China) Co., Ltd. (officially entered the BYD Dichain Supply Chain Information Platform (hereinafter referred to as "DiChain"), became the first foreign bank to enter the DiChain platform, and quickly realized the same-day launch and payment of the first DiChain platform customer on September 21.
In late November 2022, DBS Bank (China) Co., Ltd. (DBS Bank) officially entered the Shaanxi Heavy Truck Card Trust Financing Platform ("Card Info Platform"), becoming the first foreign bank to enter the Card Trust Platform, and quickly launched and disbursed the first Card Trust Platform supplier on 30 November.
In the area of frozen financing, GLP and DBS reached a cooperation in the field of digital supply chain finance in October 2022 to jointly provide efficient and convenient inclusive financial services for small and medium-sized import traders in the frozen product industry chain, enhance the liquidity of small and medium-sized enterprises, and empower the development of the frozen product industry chain.
In the area of dealer financing, DBS customized personalized digital supply chain financing solutions for the transaction scenarios of downstream dealers of core enterprises, solving the financing difficulties of micro, small and medium-sized downstream dealers and enhancing the resilience and liquidity of distributors. In the case of a Guangzhou core enterprise, DBS adopted a "one-to-nation" model, using Guangzhou as the management center of the digital supply chain, breaking through traditional geographical restrictions, and absorbing dealer financing from core enterprises scattered across the country. Through DBS' digital supply chain financial services platform, SME Financing Workflow (SFW), the SME Financing Workflow (SFW) leverages IoT technology to visualize enterprise supply chain data.
DBS' innovative credit risk scorecard can be embedded in the system to automatically calculate credit scores. Through API docking transaction data of core enterprises, integrating external data such as the PBOC and tax bureau, and combining the scorecard evaluation results to complete risk assessment and management. The solution also optimizes the application process of enterprises, 365*7*24 online application and remote account opening, improving efficiency and effectively solving the financing difficulties of downstream dealers.
In terms of third-party platform connectivity: On 22 August 2021, CE Cloud Chain and DBS Bank achieved digital direct connection to jointly build the "DBS E-Link", which uses APIs to digitize a series of processes such as supplier filing, financing, document transmission, and repayment when due, which greatly improves the efficiency and capability of customer service, increases the speed of financing lending to the level of minutes, and provides strong technical support for both parties to jointly build a supply chain financial ecosystem. In July 2022, the first partnership between Simple Exchange and DBS Bank was launched.
03 Hang Seng Bank: Hang E chain
In December 2020, the first agency payment business of Hang Seng Bank (China) Co., Ltd. was officially launched. Its payment agent model refers to providing non-recourse financing solutions for its suppliers based on the credit and payment commitments of the core buyer, using the credit line of the core buyer. This model can reduce the registration process of the credit reporting system, and suppliers can achieve rapid payment collection without opening an account and granting credit, improving the efficiency of capital operation.
On 30 March 2020, Hang Seng Bank (China) Co., Ltd. entered SF's Rong-E chain platform and realized the first circulating electronic debt certificate - "Fengdan" financing, marking the full start of cooperation between Hang Seng China and Rong-E chain in the field of supply chain finance, which may be its first digital debt certificate business and the first direct connection with the core enterprise platform.
On 2 August 2021, Hang Seng Bank (China) Co., Ltd. and China Enterprise Cloud Chain successfully launched the first "Yunxin" business, becoming the first batch of foreign banks to provide online green supply chain financing services, and also completed Hang Seng Bank's ice-breaking innovation in the third-party supply chain finance platform model. In December 2021, it further joined hands with Shenzhen Zhaoneng , a subsidiary of Pingzhi Information Group, to successfully land the first 5G communication industry application scenario "Yunxin" business relying on China Enterprise Cloud Chain, providing efficient supply chain financial support for Shenzhen Zhaoneng to further accelerate the layout of basic networks and smart homes.
In April 2022, Hang Seng Bank launched the supply chain finance platform "Heng E Chain" and landed the first agent payment transaction completed through the "Heng E Chain" supply chain financing platform (hereinafter referred to as "Heng E Chain"). It is understood that Hang E Chain is a new online supply chain financing application channel for Hang Seng China, which can provide one-stop, automated, end-to-end integrated supply chain financing services for upstream and downstream core enterprises and suppliers in the supply chain.
04 Bank of East Asia: Supply Chain Finance Platform 2.0
In 2019, BEA China's online "Supply Chain Finance Platform 2.0" includes modules and functions such as online financing application, electronic document upload, and online right confirmation, while also adding enterprise liquidity management tools, optimizing enterprise chain information management, smoothing corporate financing channels, and providing customers with one-stop digital supply chain financial services. BEA China's "Supply Chain Finance Platform 2.0" has become a comprehensive online supply chain financing platform covering factoring, refactoring, factoring pool, 1+N reverse factoring, domestic trade finance and dealer financing business.
In August 2019, BEA China also became the first foreign bank to enter the Simple Exchange platform, and the first supply chain finance business cooperated between East Asia China and Simple Exchange successfully landed.
In April 2021, the Bank of East Asia (China) Co., Ltd. and CE Cloud Chain, with the Changsha branch of East Asia China, successfully realized the financing loan of "Yunxin" business to Zoomlion Heavy Industry Co., Ltd. ("Zoomlion"), a leading construction machinery enterprise. It is understood that this is the first multi-level transfer factoring business successfully landed in East Asia China, and it is also the first foreign bank to establish a multi-level transfer factoring business cooperation relationship with Zoomlion.
In July 2021, the integration of East Asia China and Lianyi made the first business landed.
05 HSBC: Huizhi Chain
Recently, The Asset announced the winners of the 2023 Triple A Treasurise Award. Among them, HSBC China won the "Best Trade Finance Service Provider in China" award. In addition, HSBC China has won a series of awards such as "Best Supply Chain Finance Solution" and "Best ESG (Environmental, Social and Governance) Trade Finance Solution" in Chinese mainland.
Xiao Wei noted that China Shengmu is a core corporate customer on HSBC's "Huizhi Chain" online supply chain platform, which allows HSBC to serve core companies and other users in their supply chain. Xiaosui also noticed that HSBC China works closely with third-party platforms such as China Enterprise Cloud Chain to promote the development of its own digital supply chain finance.
07 Fubon Hua Yi Bank: Launched supply chain financial service platform
Based on the principle of post-factoring products, Fubon Hua Yi Bank developed the "Supply Chain Finance Platform" (hereinafter referred to as the "Platform") and officially launched it in June 2019.
In July 2019, Fubon Hua Yi Bank and Shaanxi Construction Sixth Construction Group signed a cooperation ceremony on supply chain financial services, and Fubon Hua Yi Bank's "Supply Chain Financial Service Platform" was successfully implemented in Shaanxi for the first time, becoming the first case of a foreign bank. Fubon Hua Yi Bank's "Supply Chain Financial Service Platform" directly addresses the "pain points" of the traditional supply chain, and is designed for the role of the supply chain by using blockchain technology and big data system, focusing on core enterprises and based on real trade background. The platform gathers 1-N tier suppliers and distributors through core enterprises to jointly build and maintain a complete online supply chain ecosystem.
07 Overseas Chinese Yongheng: Cooperation with China Enterprise Cloud Chain
In June 2020, OCBC Wing Hang Bank (China) Co., Ltd. and CE Cloud Chain jointly launched an online supply chain financing service, and successfully completed the first online receivables confirmation for the first customer of this service through the flagship product of CE Cloud Chain, which is a leading and listed manufacturer in the small household appliance industry in Foshan. OCBC Wing Hang China has since become the first foreign bank to launch an online supply chain financing service with CE Cloud Chain.