In order to comprehensively promote rural revitalization, the financial sector launched the "2023 Selection of Excellent Cases of Rural Revitalization in the Financial Industry" of the series of activities of the Rural Revitalization Campaign, aiming to praise the typical rural revitalization services of enterprises, refine and disseminate experience and practices, and lead China's rural revitalization cause. The following is a case display of rural revitalization of Baixin Bank:
I. Case background
The three agricultural industries, especially in the fields of farmer farming and breeding, have high procurement costs, weak epidemic prevention capabilities, and low level of informatization automation, resulting in weak anti-risk capabilities, low degree of informatization in the agricultural field, the depth and breadth of services in the financial field of agriculture are still insufficient, and the power for agricultural industry transformation and upgrading is insufficient, which can no longer meet the needs of the national implementation of rural revitalization strategy in the new stage.
In order to further improve the breadth and depth of services for agricultural products and bring together more customers of rural areas, Baixin Bank implements the guidance of national and regulatory policies, empowers the modernization of the agricultural industry, explores innovative agricultural industry supply chain financial service models, and jointly builds a financial service platform for the three agricultural industries based on artificial intelligence technology, so that financial technology achievements can benefit rural industries and help the implementation of rural revitalization strategies.
2. Main practices
Baixin Bank comprehensively uses artificial intelligence, big data, blockchain, Internet of Things and other technologies to provide three agricultural intelligent financing services, adopts the "company + farmer + finance" model, connects the whole link enterprises of the aquaculture industry chain such as breeding management service institutions, professional breeding institutions, feed producers, intelligent breeding equipment manufacturers, etc., provides one-stop breeding and financing, payment, settlement and other comprehensive financial services for seeds and farmers, reduces the cost of enterprises in the whole link of the aquaculture industry and improves the income of farmers by helping the level of breeding and large-scale iterative upgrading.
(1) Platform construction relies on "finance + technology". Fully apply the financial technology capabilities accumulated by Baixin Bank in terms of account system, identity identification and intelligent risk control, as well as the scientific and technological capabilities accumulated by Baidu Technology in artificial intelligence, knowledge graph and risk probe, integrate cloud computing, blockchain, Internet of Things and other technologies to build an open platform for financial services in the aquaculture industry.
(2) Platform construction relies on "industry + finance". It has joined forces with leading enterprises such as CP, New Hope, Longping Hi-Tech, and Sinochem Group, adopted the "company + farmer + finance" model, linked planting and breeding management service institutions, professional feed and animal protection supplies manufacturers, intelligent breeding equipment manufacturers, seed and fertilizer manufacturers, combined with the Internet of Things and blockchain technology embedded in the whole production cycle of the whole chain of aquaculture, such as production, trading, processing, logistics and sales, to realize the data transmission and sharing between agricultural industry leaders and farmers.
(3) Platform construction relies on "cloud + finance". Build all-online digital financial service capabilities, realize "financing services do not run away", deeply analyze the financing needs of the aquaculture industry, create an exclusive mobile APP for online financing services, and improve the availability and convenience of financial services for the aquaculture industry. At the same time, it combines with core enterprises to provide one-stop comprehensive planting and breeding services such as material supply and training for planters and farmers on the APP side.
(4) Continuously innovate business models, increase the investment of agriculture-related credit, and deepen the upstream and downstream enterprises of the agriculture-related supply chain. In the 2023 credit policy, it is clear that it will focus on supporting the green and low-carbon transformation of agricultural production and rural life, and increase credit support for modern planting and breeding industry, rural manufacturing (including agricultural product production, processing, manufacturing, and sales), farmland water conservancy facility construction, agricultural science and technology innovation and other fields. We will continue to deepen our support for agricultural leading enterprises and actively adopt the "bank + leading enterprise + business entity" business model. Set up "green channels", optimize the approval process, realize the tilt of various loans for rural revitalization, and provide practical and effective financial assistance for farmers in key industries.
Third, achieve results
(1) Complete multiple iterative upgrades of the platform, and greatly improve the efficiency of channel launch. On the basis of the research and development of automated approval models and intelligent post-loan risk control systems, give full play to the innate advantages of systems, data, models and strategies, optimize the deployment and iterative scheme of risk control models, and dynamically and flexibly adjust risk control strategies according to the differences of channels, products and customer groups, and compress the launch time of new channels from more than 1 month to less than 1 week, effectively improving the platform's new customer groups, new channel expansion and service capabilities.
(2) Support the financing of the pig industry chain to help farmers cross the pig cycle.
As of May 2023, relying on the service capabilities of the industrial financial service platform, a total of 3.661 billion loans have been issued to small and micro enterprises and farmers upstream and downstream of the pig breeding industry chain, including 542 breeding farmers, supporting six stability and six guarantees. Since October 2021, due to the double blow of the new crown epidemic and the pig cycle, pig prices have continued to decline, the average price has remained below 15 yuan / kg, lasting for more than 1 year, some of which reached 11 yuan / kg in some months, breaking down the breeding costs of most farmers, and farmers generally suffered serious lossesAs of May 2023, 104 farmers will be deferred to repay, and practical actions will help farmers through the pig cycle, and strongly support the development of the pig industry chain and the stable supply of the breeding market.
(3) Platform services strive to "strengthen the core and strong chain"
On the basis of improving the depth and breadth of the service breeding industry, we will help rural revitalization, develop exclusive products around the agricultural "stuck neck" fields such as seed industry and chemical fertilizer, and support the "strong core and strong chain" of the agricultural industry. First, vertically expand the tourist groups of existing core enterprises, and continue to increase support and credit investment; The second is to horizontally expand more aquaculture industry customer groups. In addition to serving Zhengbang and Makihara, expand the cooperation of New Hope, Chia Da, Iron Rider and Boone Feed to serve downstream farmers and distributors; The third is to expand aquaculture financial services to agriculture-related industries such as fertilizer and planting, and expand the core enterprises of the heart-to-heart chemical fertilizer, Longping high-tech planting industry chain, as well as upstream and downstream small and micro enterprises and farmers.
As of the end of June 2023, a total of 3.661 billion yuan of loans have been issued to upstream and downstream farmers and suppliers in the pig industry, involving 542 farmers; a total of 110 million yuan of loans have been issued to downstream poultry farmers, serving 210 farmers; a total of 48 million yuan has been granted to downstream fertilizer dealers and 60 service dealers; a total of 26 million yuan has been lent to seed dealers and 70 waiter dealers.
(4) Create a new model of digital financial services and broaden the radius of small and micro services.
The 14th Five-Year Plan clearly states "enhancing financial inclusiveness" and regards inclusiveness as one of the basic directions for the mainland's financial development at present and in the future. Baixin Bank actively implements national and regulatory requirements, continues to increase financial support for small and micro enterprises, promotes the "increment, expansion and concession" of inclusive small and micro loans, innovates the all-online loan model of agriculture-related small and micro enterprises, and constantly improves the four product systems of supply loan, order loan, aquaculture loan and bank tax loan with "Baixing Loan" as the main brand.
4. Empirical enlightenment
Baixin Bank has effectively overcome the dilemma of lack of data, high offline service costs, high risks and difficult management in agriculture-related industries such as planting and breeding, visualized and credited breeding data through digital modeling, broken the custom and curse of "thousands of wealth, not hairy", and benefited thousands of farmers, distributors and growers in the upstream and downstream of the planting and aquaculture industry. The model has the following experiences that are worth learning. First, industrial finance should be deeply integrated into the industry, grasp the pain points of the industry, be familiar with industrial technology, business model, upstream and downstream trading habits, core demands of participants, industry cycle, etc., financial products and program design should be combined with industry best practices and core demands, in order to have commercial sustainability and achieve a win-win situation for all parties. Second, we must adhere to the digital drive, the agriculture-related customer group belongs to the "long-tail" customer group, the risk is relatively high and the acceptable borrowing cost is relatively low, so it is necessary to achieve low-cost digital customer acquisition, digital financial services, digital risk control, digital operation, etc. with the help of digitalization and artificial intelligence to achieve economies of scale and commercial sustainability. The third is to adhere to the idea of platform development, through the construction of digital service platform, attract multi-party participation, on the one hand, for growers, farmers, feed suppliers, seed fertilizer suppliers, animal protection supplies suppliers, slaughterhouses, breeding technology service providers, etc. to provide sales customers and services, on the other hand, the "low-cost" data deposited by the platform can be used as the "raw material" for farmers, distributors and other participants to provide data credit enhancement, the risk control model from the original bank investigation customer "self-certification" to third-party "other evidence", the data is more objective. The model is more stable and more conducive to the platform to provide participants with "data-driven" other integrated services, including credit, planting and breeding technology.
This article originated from the financial world