Minsheng Bank: “fully embrace” block chain, has been used in trade finance and credit business

Editor’s note: This article from the chain catcher (ID:iqklbs), author: Hu Tao, the daily planet unauthorized release.

01 introduction of Minsheng Bank

Minsheng Bank China was founded in 1996 years, linked by the national industry and Commerce led the formation of China, is the first mainland by private capital to set up the national commercial banks, shareholders are members of the chamber of Commerce and industry enterprises. At present, the main business of Minsheng Bank, including loan discount for bills, the issuance of financial bonds, and ranked 251st in the world in 2018 “fortune” in the top 500.

As the private economy participating in the banking field test and explore the modern bank of national construction, Minsheng Bank in the main task at the beginning of the creation of the private enterprise is to ease the contradiction between the lack of financial support, and proposed to non state-owned, high-tech small and medium enterprises as the main target market of Minsheng bank.

At the same time, autonomy and vitality of the ownership structure of Minsheng Bank gives the higher, innovate in governance structure, asset liability management, marketing and financial system, such as Chinese banks first in accordance with international practices in trade in the preparation of financial statements, and hired Price Waterhouse company audit of commercial bank accounting.

With the landing in 2000 after the Shanghai stock exchange, Minsheng Bank to further improve its governance mechanism, and by virtue of its differentiated positioning and operating efficiency continue to maintain a rapid pace of development. The first half of 2018, Minsheng Bank achieved operating income of 75 billion 417 million yuan, an increase of 6.75%; net profit of 29 billion 618 million yuan, an increase of 5.45%; basic earnings per share was 0.68 yuan; total assets amounted to 6 trillion and 61 billion 143 million yuan, up 2.69% over the previous year.

From the market perspective, the Minsheng Bank growth for nearly 15 years to about 10 times the total market value of 280 billion 200 million, but in the past five years has been numerically under floating and downward trend gradually, which means that the bottleneck of Minsheng Bank in the increasingly fierce competition in the banking industry, the urgent need to achieve a breakthrough in new technology and new path.

The 02 possibility of Minsheng Bank Business and block chain combination

At present, the financial industry can be applied to block chain technology most widely and deeply traditional application scenarios, the major domestic and foreign banks are in the research and development of block chain technology. As a financial institution to Minsheng Bank, with a very high and has a chain block.

For example in the bill business, the bank can use the existing function block chain to achieve point-to-point transaction can break the bill intermediary, the bill value transfer to the intermediary; block chain information non tampering based on bill, once the transaction is completed, there will be no default phenomenon, so as to avoid the “sell”, one vote money is not endorsed synchronization behavior; in cross-border payment services, banks can direct point-to-point payment between the two sides to use block chain technology, to participate in payment verification, has obvious advantages in reducing the risk of cross-border payment, improve cross-border payment efficiency, saving bank resources etc..

At the same time, the chain in public information found in Minsheng Bank, many executives have talked about the value and application scope of the blockchain, and expressed willingness to block chain technology is applied to the Minsheng Bank’s products. Minsheng Bank Chairman of Hong Qi in November last year’s “E” product line chain livelihood activities said publicly, block chain, artificial intelligence technology, promote the change of supply chain operations and financial operations, and gradually realize the intelligent decision, the main ecological and service activities and visual management, thereby reducing the information asymmetry and moral risk problem.

“Blockchain will change the financial system of the core principles, and the existing banking system and institutional basis participants have disruptive impact, but also can help the commercial banking system to solve the entire business chain of pain points and problems. “President Huang Jianhui said in 2018 Minsheng Bank Research Institute of artificial intelligence and financial innovation summit.

The new general manager of Minsheng Bank of Information Technology Department of cattle in a media interview that the block chain technology will profoundly change the bank end of the core business process, “Minsheng Bank has been fully embrace the blockchain”.

But the bull in 18 years in Beijing Xinzhuang digital economy forum also pointed out that the development of the blockchain process is long and full of challenges, but also the blockchain technology in the future may subvert some business models, but the common scenes are often specific scene, category and performance problems can not solve the transaction, therefore also need a revolutionary application of landing time.

In addition, the Minsheng Bank as a private enterprise, in the exploration of new technology and new mechanism of environment than other domestic banks to be more tolerant and open, have more favorable conditions.

The blockchain Minsheng Bank in 03

Public information display, dynamic Minsheng Bank at the earliest block chain is in 16 years in November officially joined the R3 block chain alliance, and establish partnerships, but no subsequent progress.

The chain to block chain products Minsheng Bank in recent years, the core is completed in cooperation with CITIC Bank cross bank alliance chain, the specific structure of the visible:

In July 17, the first of the alliance chain products based on the Minsheng Bank cooperation with CITIC Bank to create the domestic credit information transmission system (BCLC), and in the first day of completion of the first one hundred million yuan of domestic credit business. This system won the people’s Bank of China technology development award two prize. It is understood that the letter of credit is a bank according to the request of the importer (buyer), open to the exporter (seller) to ensure a written certificate of payment take responsibility.

For a long time, the domestic bank credit business are using the traditional open letter and mail delivery, and also need to send SWIFT electric charge plus confirmation, the efficiency is low, the security is not high. And the customer can only query the progress of business within the bank, can not understand the counterparty bank treatment schedule, poor transparency. The authenticity of trade background and the bank lacks sufficient means to verify the possibility of business, it is difficult to prevent third party documents such as invoices, vouchers, repeated use of fake paper.

According to Minsheng Bank, public information, based on the on-line BCLC system block chain technology, the new system has realized from the letter to open, to change the electronic presentation sent from the paper, reduces the time cost and mailing costs; customers through online banking channels real-time query complete business chain progress, increase the transparency of business at the same time; through the introduction of future logistics, tax and other relevant agencies, the authenticity can be guaranteed, and reduce the risk of business documents; and the regulators can also be used as nodes on the chain, open and transparent bank trading books can help regulators to collect all business data and real-time management.

However, there is a credit system infrastructure is not completely independent development of Minsheng Bank news shows, but through public bidding, by the cloud like block chain bid and subsequent development organization.

In October 18, Minsheng Bank, CITIC Bank China joint bank jointly developed based on distributed architecture, business aspects of the whole chain, system automatic “blockchain Forfaiting on-line trading platform, the system for Forfaiting tailored pre inquiry, inquiry, quotation of assets after the release of funds multi scene business logic, concurrent serial application service process. It is understood that the platform on the line of the month the total trading volume is 6, the total amount of 3000 million yuan.

According to the understanding of the so-called chain catcher, forfaiting is a product of trade financing and export trade are closely related, or other financial institutions or banks without recourse from exporters outright due to export goods or services, accounts receivable. In the traditional trade way, price formation and the transfer of assets out of line, traditional information channel is easy to cause the transaction information distortion and multi subject trading standards are not uniform and other issues have long plagued the banking industry.

Public information shows that Minsheng Bank, with three banks to create a joint system, the bank can use the key authentication, the core elements of asset verification, credit rating and other ways to ensure the intelligent asset information is true and valid, and a collection of assets released funds offer, offer offer, transfer of creditor’s rights and a series of links, to avoid the occurrence of intention after reaching the maximum delay of the transaction, reduce transaction costs and enhance financing efficiency.

In addition, cattle still 18 years of Beijing Xinzhuang Digital Economy Forum revealed that exploration is still a block chain chain of Minsheng Bank financial justice. “In the period of economic downturn, banks face a lot of litigation, we just have the relevant requirements at that time, it was decided to use the blockchain technology to solve this problem, we build a platform at the time, once a dispute, can initiate the program online, but also from the block of direct evidence, and even judicial evidence. “Niu Xin Zhuang said.

04 summary

Minsheng Bank currently has blockchain technology applied to Forfaiting and credit the two traditional financial services, can be seen in the field has accumulated a certain block chain of practice, practical and commercial value and recognition block chain technology.

At the same time, the landing operations are not the main business, mainly for the B side, and the number of customers and the scene is quite limited, the specific operation effect and feedback of the product remains to be seen, still need more time to observe and judge.

Leave a Reply

Your email address will not be published. Required fields are marked *