As a national team in the development of inclusive finance and the main force in financial services for small and micro enterprises, ABC has always adhered to serving the "three rurals", deeply cultivated the field of inclusive finance, grown together with the majority of small and micro enterprises, and fulfilled the responsibilities of large state-owned commercial banks. With the rapid development of modern technologies such as the Internet, big data, artificial intelligence, cloud computing, and blockchain, Hunan Agricultural Bank continues to promote digital transformation, deeply reconstruct and reengineer its business model, promote the transformation and upgrading of inclusive finance to online, mobile, automated, and intelligent, form a data-driven development model, and promote the high-quality development of inclusive finance.
Tao Weiliang, President of Agricultural Bank of China Hunan Branch
Policy guidance and increase policy financing support
It is a "key move" for Hunan Agricultural Bank of China to achieve leapfrog development of inclusive finance by further promoting digital transformation, building a new ecology of digital inclusive finance, injecting new development momentum into inclusive finance, and adhering to the development path of digital inclusive finance. Since 2020, Hunan Agricultural Bank has conscientiously implemented the spirit of the instructions of the CPC Central Committee and the State Council, as well as the decision-making and deployment of regulatory authorities and the Agricultural Bank of China, and has implemented the key action of "promoting digital operation and helping innovation and transformation" since 2020 to promote the reform of inclusive financial management mode and further improve the efficiency of financial services, and the balance of inclusive loans of the central bank of Hunan Agricultural Bank will exceed 100 billion yuan by the end of 2023, reaching 105.6 billion yuan, 4.4 times that of the beginning of 2020.
1. Build a digital credit product system. Actively use big data technology to reconstruct the small and micro online credit model of batch customer acquisition, automatic approval, independent credit use, and centralized risk control, realize comprehensive portraits and accurate evaluation based on multi-dimensional data, launch and continue to improve the "small and micro e-loan", which covers the three major digital product systems of credit, credit enhancement and industrial chain, innovate and launch the self-service and recyclable online loan "Huinong e-loan", and comprehensively use business information, transaction flow and other data to innovate and launch "merchant e-loan" and "quick e-loan to help business" to meet the financing needs of multiple scenarios. At present, nearly eighty percent of Hunan Agricultural Bank's inclusive loans come from online products, with a total investment of more than 99 billion yuan in "small and micro e-loans" and more than 30,000 loan customers, and a balance of 43 billion yuan in "e-loans for farmers" and 260,000 rural households.
2. Launched an online financial service platform. Build an online financial service platform for small and micro enterprises "Puhui e-Station", integrating common functions such as account opening prefilling, credit measurement, loan application, contract signing, online repayment, etc., to provide one-stop, full-process, and all-weather financial services for small and micro enterprises. Launched the "ABC Smart Chain" platform to provide six major online supply chain products: factoring e-finance, e-loan receivable, order e-loan, government procurement e-loan, bill e-finance, and bill e-finance, providing intelligent and modular services for supply chain customers. In 2023, 80 new chains will be added, bringing the total number to 179, supporting 4,786 upstream and downstream customers, with a net increase of 1,392, and issuing loans of 16.3 billion yuan. The company has developed and launched the Hunan Agricultural Bank Micro Bank, innovatively implanted loan applications, living expenses and other livelihood services, and currently has more than 9.9 million fans on the platform, becoming an important channel for communicating with and acquiring customers.
3. Establish a collaborative bank-government cooperation model. Strengthen communication and docking with government departments, realize bank-government information sharing, and continuously improve the quality and efficiency of inclusive financial services. It took the lead in docking with government platforms such as the "Hunan Credit Platform" of the Provincial Development and Reform Commission, the "Hunan Enterprise Finance Platform" of the Provincial Department of Industry and Information Technology, and the "Credit Information Platform for Enterprise Income and Expenditure Flow" of the Provincial People's Bank of China, and jointly built a public service platform for Hunan foreign trade with the Provincial Department of Commerce, and provided online loan application channels through the "Pratt & Whitney e-Station" applet. Deepening the "bank-tax interaction", it was the first in the industry to realize the two-way input and output of the Hunan tax APP, Zhangyin and micro-bank, with a total of 27.61 million transactions in 2023, ranking first in the industry. By the end of 2023, there were 1,237 bank-based cooperative loan customers with a balance of 2.72 billion yuan, a net increase of 825 customers and 1.1 billion yuan, and the loan increment accounted for 15.9% of the increase in loans to inclusive legal persons. By the end of 2023, there were 1,762 loans to small and micro enterprises in science and technology, with a loan balance of 9.91 billion yuan, a net increase of 727 and 3.64 billion yuan from the beginning of the year, an increase of 70.2% and 58.1% respectively.
On November 24, 2023, Hunan Agricultural Bank organized a kick-off meeting for the province's "Flowing E-Loan" product, at which the overall introduction and mobilization of the innovative background, product characteristics, and marketing deployment of "Flowing E-Loan" were conducted
4. Launch intelligent management tools. Strengthen the construction and application of data platforms, introduce all small and micro enterprise business information and public credit information, create operation and management tools such as PAD mobile workbenches, personal electronic business cards, and inclusive data e-point, and build four functional modules of statistical monitoring, marketing empowerment, operation management, and operation and maintenance support, and provide functional support for account managers such as information inquiry, customer portrait, product center, account opening pre-inspection, new enterprise express, and marketing reach. Establish an inclusive digital operation system based on four types of closed-loop tasks: customer service, risk control, compliance disposal, and operation and management, and empower the grassroots through digital management tools, optimize processes, and improve efficiency. In 2023, the employees of Hunan branch outlets will go out to carry out mobile farmer information archiving, reaching 163,000 households.
On December 23, 2023, the account manager of Changsha Jinxia Branch of Agricultural Bank of China introduced the "flowing e-loan" product to the person in charge of a machinery company in Hunan, and assisted in online processing, and issued a credit loan of 1.2 million yuan on the same day
In response to the construction of financial big data centers, we will create new support for technology empowerment
Hunan Agricultural Bank actively responded to the unified deployment of the construction and promotion of the financial big data center of the Hunan Branch of the People's Bank of China, set up a special working class, did a good job in basic data cleaning, completed the development of interfaces and programs with high standards, and ensured the security and compliance of data use.
1. Actively respond to the establishment of a special team to ensure the provision of data. Hunan Agricultural Bank regards the construction of the financial big data center as an important opportunity to deepen digital transformation, and takes the data of the financial big data center as a new support for the development of inclusive finance of Hunan Agricultural Bank.
2. Sort out and clean the underlying data and consolidate the basic data. According to the platform construction requirements of the Hunan Branch of the People's Bank of China, the Hunan Agricultural Bank organized the combing and cleaning of the bank's financial data, and provided nearly 300 million pieces of business data and 20,000 pieces of credit customer sample database data every month in accordance with the requirements and EAST5.0 specifications, so as to consolidate the basic data of the data center.
3. High-standard development interface to achieve automatic data exchange. Hunan Agricultural Bank has done a good job in the development of platform data exchange interface with high standards, and the interface adopts TongLINKQ middleware to provide automatic maintenance functions of node data transmission channels, and provides transmission layer SSL (including commercial secret algorithm) and traffic protection measures based on the connection channel level to ensure that the transmission channel is safe, reliable, timely and continuous, and to ensure the stability of platform data. Hunan Agricultural Bank became the first commercial bank to complete the TongLINKQ joint debugging test.
4. Implement certification in multiple links to ensure the safe use of data. In order to ensure the safe use of data, Hunan Agricultural Bank strictly implements the digital signature method to sign and verify the messages, adopts the advanced technology, safe and reliable, efficient and easy-to-use, and flexible expansion of the Taihang Boot framework of the Agricultural Bank of China for product development to ensure the security and stability of data interaction and storage, and uses external industrial and commercial data and enterprise verification interfaces, combined with face recognition and electronic signature systems to ensure the security of identity authentication.
Implement product joint modeling, and take the lead in launching a new product of "flowing e-loan".
Hunan Agricultural Bank firmly grasped the opportunity of the first batch of pilot banks in Hunan Province for the financing of the "Enterprise Revenue and Expenditure Flow Credit Information Platform", and under the guidance of the Hunan Branch of the People's Bank of China, it took the lead in realizing the launch of the "Flow E-Loan". In the two months since its launch, it has accepted more than 30,000 loan applications for small and micro enterprises, successfully pre-granted more than 6.5 billion yuan of credit to more than 20,000 customers, issued a total of 1.6 billion yuan of loans, and has more than 2,000 borrowers, of which 30% are first-time borrowers, which are well received by the market.
1. "Flowing e-Loan" is a new product of joint modeling. For the first time, Hunan Agricultural Bank cooperated with Hunan Credit Information Co., Ltd., a subsidiary of Hunan Caixin Financial Holdings Co., Ltd., to implement joint modeling, and completed the R&D approval of the product system within 1 month, the R&D approval of the model within 2 months, and the development of the whole process online system within 3 months, becoming the first commercial bank in the province to put into production, and the first provincial branch in the national agricultural bank system to use the data of the platform to carry out product innovation. In one fell swoop, the "Flowing e-Loan" has become the first fully online credit financing product independently developed and innovated by Hunan Agricultural Bank in the field of inclusive finance.
2. "Flowing e-Loan" is a new product with a high degree of digitalization. Through the innovative introduction of platform data such as the People's Bank of China's "Enterprise Income and Expenditure Credit Information Platform", and the use of corporate account transaction records of 29 banks in our province as the basis for access and credit, it has broken the inter-bank information barriers for the first time and helped our bank to accurately profile customers from a full perspective, without the need for small and micro enterprises to provide statements and various licenses and other information. Facial recognition, big data authentication and bank-level encryption technology are used to fully ensure the accuracy and security of enterprise information and the legality and compliance of business authorization, and prevent and control business risks.
3. "Flowing e-Loan" is a new product with a wide range of applicable groups. On the basis of relying on tax payment and credit extension of financial assets of a single bank in the past, the "flowing e-loan" converts bank flow into corporate credit through technology empowerment, which effectively solves a series of problems such as difficult guarantee, difficult financing, slow financing, and low financing amount for small and micro enterprises, and is applicable to a wide range of groups. The whole process of the product is online, the operation is convenient, and the customer experience is good. The use of the Agricultural Bank of China Hunan Branch micro-bank official account for customers who are not limited to opening accounts in the Agricultural Bank of China to accept the pre-credit of "flowing e-loan" business online anytime and anywhere within 24 hours, and promote it to small and micro enterprises in our province without difference.
4. "Flowing e-loan" is a new product with good market response. For example, Shimen Guangyue Agricultural Development Co., Ltd. is a key citrus distribution enterprise in Shimen County, Hunan Province, with products exported overseas and annual sales of about 50 million yuan. Since the enterprise is mainly engaged in the wholesale of agricultural products, enjoys preferential tax reductions and exemptions, and the annual tax amount is not high, the "tax e-loan" amount in Shimen Mengquan Agricultural Bank in 2023 is only 600,000 yuan, and this coincides with the critical period of large citrus sales at the end of the year and large demand for payment settlement funds, and the company's funds are extremely tight. According to the current situation of the enterprise, Shimen Mengquan Agricultural Bank understands that the daily flow settlement volume of customers is good, and recommends the newly launched "flow e-loan". The legal representative of the company immediately rushed back to Shimen, Hunan from Guangxi, and successfully loaned 3 million yuan on the same day, which effectively solved the problem of large demand for citrus acquisition funds, and was very satisfied.
Gather the momentum of scientific and technological innovation to help the new development of inclusive finance
In the future, Hunan Agricultural Bank will further use digital technology to help breakthroughs in inclusive finance and accelerate the development of a new path for the high-quality development of inclusive finance.
1. Vigorously develop scenario finance. Closely follow the requirements of the "Notice of the General Office of the State Council on Printing and Distributing the Implementation Plan for Strengthening the Sharing and Application of Credit Information to Promote the Financing of Small, Medium and Micro Enterprises", give full play to the strategic partnership between the National Development and Reform Commission and the Agricultural Bank of China, fully grasp the development opportunity of the "Hunan Credit" platform of the Hunan Provincial Development and Reform Commission to concentrate on the province's government affairs big data, and make full use of the technical advantages of the "Pratt & Whitney e-Station" of our bank to connect the "Hunan Credit" platform in one stop, so as to deepen the integration and utilization of the province's government affairs big data. Further explore the docking of platform data from government functional departments such as the Provincial Department of Science and Technology, the Department of Industry and Information Technology, and the Department of Finance, and expand the introduction of a variety of government affairs and industry data such as taxation, provident fund, customs, justice, water and electricity, and government procurement information. Deeply explore the related scenarios of the whole life cycle of inclusive customers, including business scenarios, financial scenarios, life scenarios, etc., widely embed financial services, strengthen the interconnection, mutual diversion and mutual empowerment of customers in different ecological scenarios, promote product and service innovation at multiple levels, lower the threshold for customer entry, and further cover the pain points of inclusive finance quality improvement.
2. Vigorously develop financial technology. Promote the application of advanced technologies, expand the business "toolbox", continuously improve the synergistic and linkage of omni-channel services, and further break the time and space constraints of the development of inclusive finance. For example, in the face of the problem of incomplete credit data of small and micro enterprises, technologies such as the Internet of Things, big data, complex networks, and multi-party secure computing are used for information enrichment. Faced with the problem that traditional credit evaluation models are not applicable to small and micro enterprises, machine learning, transfer learning and other technologies are used to develop intelligent models. Faced with the problem of scattered rural land and a wide variety of agricultural products, it is difficult to calculate and evaluate the economic value and financing needs, using satellite remote sensing, blockchain, big data and other technologies, combined with local resource endowment, to provide personalized financial services for various breeding projects. Establish multiple online and offline touchpoints to provide inclusive customers with an access experience of "anytime, anywhere, and at will". Integrate internal and external data to build a digital panoramic view of customers and achieve intelligent service matching.
3. Vigorously build smart risk control. Expand the integration and utilization of financial and government affairs big data such as corporate account statements and intra-bank data, and extend from the accurate portrait and identification model of pre-loan customers to the quantitative risk assessment model and the trigger-type post-loan early warning system, so as to realize the standardized management and application of data in the whole process and all fields. The decision flow of mathematical models is used to optimize the workflow of manual operations and increase the proportion of intelligent credit review. Achieve real-time monitoring and early warning, and promote the transformation of risk prevention and control from "civil air defense" and "human control" to "technical defense" and "intelligent control". Comprehensively enhance the sustainability of inclusive financial services.
(This article was published in the second half of March 2024)