Financial Times: Blockchain technology can improve risk management and control capabilities in the commercial factoring industry

The Financial Times today issued a document "Business Factoring Steps into the Peak Period of Adjustment, and Technology Helps to Strengthen Wind Control." According to the article, with the development of technologies such as big data and cloud computing, the penetration rate of technology into the financial industry is increasing day by day, especially in the areas of risk prevention and control and anti-fraud. The business factoring industry is no exception. At present, the cross-border integration of financial technology and commercial factoring is becoming more and more in-depth. More and more commercial factoring companies are applying new technologies such as big data and blockchain to improve their risk management and control capabilities. Blockchain technology addresses industry core data breaches. In addition, the blockchain has the characteristics that the data cannot be falsified. In the factoring business, a set of processes of financing, credit risk management, accounts receivable management and collection services are written on the blockchain, which can enable financial institutions and factoring. The company tracks its data and the flow of funds throughout the chain, which in turn significantly reduces risk.