On April 29, the online business bank initiated by ant group released its annual report for 2021.
According to the data, the overall operation of e-commerce banks has improved steadily. The digital credit business service for small and micro enterprises has exceeded 45 million, with an operating revenue of 13.9 billion yuan and a net profit of 2.09 billion yuan. The non-performing rate of small and micro loans is basically the same as that of the previous year, at 1.53%.
According to its annual report, e-commerce banks have formed a differentiated development path with many commercial banks, put forward and defined three major positioning for the first time, and positioned itself as “a supplement to the financial system”, “an assistant serving small and micro enterprises” and “an explorer of financial technology”.
“financial supplement”: 80% of first loan households
As one of China’s first private banks approved by the China Banking and Insurance Regulatory Commission and an Internet Bank initiated by ant group, the outside world has always expected its special gene to bring new changes to the development of the industry.
According to the analysis of its development data in recent years, the number of online commercial bank service customers has increased steadily. The net growth of new users has exceeded 10 million for two consecutive years, and more than 80% of new users in the last year are operating first loan users. In this annual report, the e-commerce bank first proposed and stressed that it would take the “replenisher” as one of its role positioning. Chairman Jin Xiaolong said that the e-commerce bank paid more attention to the “blank market” and “weak areas”.
Since its inception, e-commerce bank has focused its service groups on small and micro financial markets. It can be seen from its annual report that at present, its small and micro service objects have covered e-commerce, coders, supply chain merchants, operating farmers, truck drivers and other groups.
Focus on serving small and micro enterprises. First, there are significant commonalities based on the financing needs of small and micro operators for a long time: due to the lack of collateral, there is a great demand for credit loans, there is an urgent need for funds for daily operation turnover, and the amount of demand is small, which is “short, small, frequent and urgent”.
At the same time, small and micro operators play an important role in China’s economy. In 2021, China’s market players exceeded 150 million and the number of individual industrial and commercial households exceeded 100 million. Individual industrial and commercial households alone have driven nearly 300 million people to employment. Serving small and micro enterprises plays a key role in the development of the real economy. “If small and micro enterprises prosper, the real economy will live”. Small and micro finance is also the development direction encouraged by the state for a long time.
According to its annual report, in 2021, the average loan duration of small and micro users was about three months, more than 70% of the loan interest expenditure was no more than 100 yuan, and the overall interest rate of Pratt Whitney small and micro loans decreased for four consecutive years. With the help of the advantages of data technology and Internet operation means, through the contactless loan “310” mode of 3-minute application, 1-second lending and whole process 0 manual intervention, the differentiated development path of e-commerce bank just matches the financing attributes of small and micro operators, occupies the “blank market” serving small and micro finance, and forms misplaced competition with peers.
By the end of 2021, the e-commerce bank had served 20 million county-level small and micro operators and farmers, accounting for nearly half of the total service customers. Among them, the growth rate of county customers was 7.4% higher than that of urban customers, and the growth rate of loan amount in that year was 17.4%; The growth rate of customers in the West was also 14% higher than that in the East, and the growth rate of loan amount in that year was 32% higher. The business growth rate in counties and western regions is significantly higher than that in cities and eastern regions, indicating that e-commerce banks have made more efforts in “weak areas” in the past year.
“open bank”: expand various partners
In 2020, e-commerce bank will build a Chinese style open bank as its core strategy for the next five years. The 2021 annual report shows that it once again emphasizes the positioning of openness and says that it “hopes to become an assistant of all sectors of society to support and serve microenterprises in the future”.
As can be seen from its annual report, based on its open banking strategy, e-commerce bank has carried out a large number of foreign cooperation, and its partners have expanded every year in the past two or three years. From 2021, its partners include banks, county governments, tax bureaus, financing guarantee companies, brands and so on.
Taking opening up as a strategy, it has accelerated its access to more long tail customers that could not be covered in the past, and expanded its service scene and market scale. For example, it has signed contracts with 29 provincial tax bureaus across the country to serve 2 million small and Micro customers through “bank tax interaction”, of which more than 9 annual sales are less than 5 million; It has cooperated with financing guarantee companies in 18 provinces and cities, issuing nearly 50 billion guaranteed loans and guaranteeing more than 500000 small and micro enterprises.
On the other hand, small and micro groups play a vital role in economic development. Serving the small and micro economy is also an important work of a large number of institutions. Relevant people said that although institutions from all walks of life have an urgent desire to serve microenterprises, how to screen, reach and serve is a difficult problem in front of them.
Taking county areas as an example, many small and medium-sized financial institutions in rural areas have rich experience in serving agriculture, rural areas and farmers, and touch the advantages offline. However, subject to traditional means, they have low efficiency, high cost and difficult risk control. They can only serve a few large customers in the rural market, and the customer group can not be effectively expanded. How to serve more County microenterprises and farmers and support the long-term development of county economy through financial means is the focus of many local governments.
Since 2018, e-commerce banks have begun to explore cooperation with county governments, using digital risk control to replace traditional risk control methods, establish exclusive digital risk control models for county users, and establish more accurate digital portraits, so as to provide higher digital credit lines. As can be seen from its 2021 annual report, at present, more than 1000 agriculture related counties and districts in China have reached cooperation with e-commerce banks on digital Inclusive Finance, accounting for nearly half of the total number of counties in China.
Industry analysts said that in recent years, the open banking model has become the direction of the digital transformation of the global banking industry. Many Chinese banks have also explored the open banking model in recent years. Its purpose is to embed financial services into various scenarios and find and meet various new financial needs of users. Financial technology capability is the basis of building an open bank, and it has also become a difficulty and threshold. However, in this regard, technology bank has data and risk control technology, which has inherent advantages for reaching the rich scenes of long tail customers.
“technology Explorer”: 59% increase in investment
In 2021, satellite remote sensing has become a more “fashionable” technology. Let the satellite in the sky connect with the farmers on the ground, revitalize the farmers’ assets through science and technology, and become the unique solution of rural finance of e-commerce bank. The satellite remote sensing credit system, called “great tit”, judges the farming area and category of farmers by analyzing satellite images, predicts the output value, and gives a reasonable loan amount.
In the field of industrial finance, e-commerce Bank launched the digital supply chain financial system “wild goose system”, which upgraded the “1 + n” mode of traditional supply chain finance to “1 + N2” mode for the first time based on technologies such as large-scale graph computing, multimodal identification, blockchain and privacy computing, without the guarantee of core enterprises, and regarded each small and micro enterprise in the supply chain as a new center, Explore and serve more microenterprises connected behind these microenterprises.
From its 2021 annual report, e-commerce bank further increased its investment in science and technology and positioned itself as a “science and technology explorer in the field of small and micro finance”. According to the data, its investment in information technology increased by 59% year-on-year in 2021. At the same time, we will continue to increase the attraction of high-quality scientific and technological talents. In 2021, the proportion of scientific and technological personnel will exceed 60%.
Industry insiders said that the promotion of scientific and technological innovation to the financial industry is mainly in two aspects. One is to promote the reform of financial products and models, effectively reduce the threshold of financial services, build scenes by relying on scientific and technological means, and carry out online new products by using credit data accumulation, so as to cover more scenes and provide accurate services; Second, it has promoted the optimization and improvement of financial services, taking the Internet mobile terminal as the contact point, so that users can obtain more convenient and efficient online financial services.
From its annual report, e-commerce banks accurately portray small and micro users through technology driven. Each user can obtain financial services through mobile phones. A mobile phone is equivalent to a bank outlet, which improves the efficiency of financial access. At the same time, through technological innovation, the coverage of sinking customer groups has been improved in many financial fields.
According to the data, by the end of 2021, the “great tit” of e-commerce bank has covered 28 provinces, cities and autonomous regions in China. Through in-depth learning and graph neural network, it has expanded the identification scope to more than 20 kinds of staple foods, and solved the identification problems of cash crops such as apples and kiwi fruit. More than Shanghai Pudong Development Bank Co.Ltd(600000) large planting households have obtained contactless loan support through a circle of mobile phones. At the same time, more than 500 brands such as Haier, Mengniu and Libai have access to the “Dayan system” of online commercial banks. Small and micro operators in the supply chain have their own “bank outlets” through their brands, and the loan availability rate has increased to 80%.
For the future, Jin Xiaolong, chairman of e-commerce bank, said in his annual report that in 2022, e-commerce bank will strengthen the guidance of ESG concept, promote technological innovation, further open scientific and technological capabilities and Internet operation mode to brand partners, financial peers and partners from all walks of life, and jointly provide more comprehensive comprehensive financial services for small and micro groups.
