Bank of China releases 2020 Economic and Financial Outlook Report: Blockchain empowers the banking industry in all directions

Reporter: Lu Yuhang

Source: Financial Times-China Financial News Network

Editor's Note: The original title was "Multi-field Exploration, Blockchain Empowers the Banking Industry in All Directions"

Editor's note: In the context of accelerating the development of blockchain technology in major countries around the world, China is accelerating its seizure of runways. With the rise of the blockchain as a national strategic technology, the application and innovation of blockchain technology in various fields has continued to accelerate.

It is worth noting that blockchain technology has made it possible for the financial industry to build a new credit mechanism. It is an urgent task for the banking industry to accelerate the layout and promote the research and application of blockchain technology, consolidate and cultivate competitive advantages, and achieve high-quality and high-level growth.

Since the beginning of this year, the banking industry has applied rich blockchain technology. Recently, the first "national team" blockchain service platform was launched, and 12 banks joined the blockchain service network development alliance. This means that the infrastructure construction of the underlying public blockchain is accelerating. It can be foreseen that the application scenarios of blockchain technology in the financial field will continue to expand in the future, which will make blockchain technology play a greater role in developing the digital economy and helping economic and social development.

On December 1, the Blockchain Service Network Development Alliance initiated by the National Information Center, China Mobile, China UnionPay, etc. held the first Blockchain Service Network Partner Conference in Hangzhou. ) Development and use of BSN to facilitate in-depth exchanges and discussions on urban governance issues.

In fact, in addition to joining the BSN which is planned by the National Information Center of the "National Team", the banking industry is constantly moving in the blockchain field. The "2020 Economic and Financial Outlook Report" (hereinafter referred to as the "Report") issued by the Bank of China on November 28 shows that blockchain has broad application prospects in the financial field. In the global banking industry, more than 100 banks have explored blockchain applications. And layout. Chinese commercial banks started the research and development of blockchain technology a few years ago, and applied blockchain technology to revolutionize credit business, cross-border business, intermediate business, and government and people's livelihood services.

Breaking Information Asymmetry Bottlenecks

"Credit business has always been plagued by problems such as information asymmetry, high management costs, and difficulty in onlineizing credit and payment scenarios. Blockchain technology maps historical transaction data to the blockchain platform. Loan customers ’transaction records, the creation of auditable and shared records, and the provision of financing services based on the records have effectively reduced the degree of information asymmetry.” The Report pointed out that banks using blockchain technology can effectively reshape supply chain finance, Mortgage business model, thereby reducing the asymmetry of credit business information.

Banks have developed rich practices in this area. Bank of Jiangsu combines blockchain and IoT warehouse supervision technology, stores pledged status information and integrates multiple system business data such as in-line credit management system, supply chain system, etc. The pledge is determined through a comparative analysis of the collateral status information. Whether the activities of entering and leaving the warehouse are normal.

"For example, when the pledged goods are stored, the Jiangsu Bank node will monitor the pledged goods storage information and send the information to the supply chain system. The supply chain system will immediately verify the status of the pledged goods. When this pledged goods is still in the pledged state , It will issue an alert to notify the account manager, so as to remotely monitor the status of the pledge, reduce the risk of financing business, and create a new idea of ​​post-loan management. "As of the end of October, for the Wuxi IoT movable property customers, the cumulative loans exceeded 6 billion yuan. , No defect has occurred so far.

In order to obtain real, comprehensive and accurate business data of small and micro enterprises, Zhongbang Bank uses the blockchain distributed ledger encryption security, smart contracts, anti-tampering, traceability and other features, as well as intelligent monitoring, smart labels, and information technology of the Internet of Things. Means, collect daily business data of small and micro enterprises, realize the four flows of business flow, logistics, capital flow and information flow, forming a data closed loop.

In addition, the "Report" shows that the Agricultural Bank has established a blockchain-based Internet-based e-commerce financing system for agriculture, which has transformed agricultural-related e-commerce, supply chain financing, and online payment systems into alliance chains. On the basis of the IBM blockchain framework, Ping An Group has customized the "One Account" to build an "Account Chain" platform. It has been put into use in multiple scenarios such as blacklist sharing, supply chain finance, one account through financial institutions, small and micro enterprise loan platforms, and asset platforms. Suning Bank launched a movable property pledge financing platform, relying on blockchain technology, to achieve real-time viewing of the bulk goods receipt and storage records, and improve the risk control capabilities of the front and back of credit. Weizhong Bank launched a cross-institutional alliance chain to enhance its "particle loan" product risk identification capability.

Facilitating multiple business development

In the past, because the customer information and business data of the inter-bank cross-bank discount business could not be transmitted quickly, efficiently, and securely, it was difficult to promote the cross-bank discount business.

In order to solve this pain point, Jiangsu Bank's "Su Yin Chain" platform uses blockchain technology as the underlying support to transfer bills and discount information, cracking the identity authentication problem of ticket-holding customers in traditional business models, the problem of sound customer information, and the relationship between enterprises and banks. , Bank-to-bank information trust and other issues, while facilitating customers, but also enrich the bill acceptance model.

By cooperating with large national power grid companies, the bank innovatively launched the "E-ebao" product in combination with electricity consumption scenarios. "The information registered by the electricity-consuming enterprises is recorded in the distributed ledger of" Su Yin Chain "and sent to the discount bank, which technically excludes the possibility of data being tampered with and forged. At the same time, the discount processing bank passed the physical information of the bill Compared with the information on the blockchain, the authenticity and compliance of the bill business have been improved. In this way, electricity companies can use the bills on their hands to offset the payment of electricity charges through online operations. The relevant person in charge of the bank stated that as of the end of October, the bank had discounted more than 5,000 discounts, with a cumulative total of more than 3 billion yuan.

It can be seen from the practice of Jiangsu Bank that with the help of blockchain technology, the construction of the bank's digital bill transaction platform has been accelerated, providing possibilities for the rapid development of intermediate business. At the same time, this technology also effectively promotes the development of cross-border trade payment, trade financing and clearing systems, and solves the problems of banks' cross-border business.

The "Report" shows that, with the help of the blockchain Forfaiting transaction platform, Postal Savings Bank successfully completed the first secondary market forfaiting interbank transaction based on blockchain technology. China Merchants Bank has realized the application of blockchain technology in cross-border direct settlement of global cash management. CCB created “Blockchain + Trade Finance” and cooperated with IBM to develop a blockchain ledger insurance business platform based on super ledger, becoming the first domestic bank to apply blockchain technology to international factoring business.

It is worth mentioning that in October, CCB officially released an upgraded version of its blockchain trade finance platform-"BCTrade 2.0 blockchain trade finance platform", to upgrade platform functions, enrich platform scenarios, and provide a better experience. Trade financial services. Ji Zhihong, deputy governor of CCB, wrote that the bank's blockchain trade financial platform has better addressed the shortcomings of insufficient traditional trade financial services and unsatisfied demand, and has also formed a more efficient risk control system. The cumulative transaction volume since its launch Nearly 400 billion yuan, allowing more and more market players to "hold hands" with the new finance.

Expanding financial services boundaries

At the Blockchain Service Network Partner Conference, Li Nanqing, President of Weizhong Bank, said that BSN can promote the value transformation and capacity upgrade of the Internet, become the information infrastructure of the national economic global development strategy, and provide smart city construction and digital economy development. Provide solid protection.

Blockchain technology provides the banking industry with technical possibilities to expand the boundaries of financial services. "In the ecological construction of financial scenarios such as government affairs, people's livelihood, education, employment, retirement, precision poverty alleviation, medical health, commodity security, food safety, public welfare, social assistance and other financial scenarios, blockchain technology can bring smarter, more convenient Better service. "The report shows.

"According to the development concept of" co-construction, co-governance and sharing "proposed by the Fourth Plenary Session of the 19th Central Committee, social collaboration, public participation, and technological support, the blockchain has well reflected the value orientation that takes into account both efficiency and fairness. Taking CCB's "housing chain" as an example, the blockchain technology provides technical support for functions such as leasing contract data on-chain and synchronous update of rental housing information on the comprehensive housing rental service platform, and provides government supervision departments, leasing enterprises, intermediaries, The lessor, the lessee and the financial service institution and other parties have established a credible, reliable, mutually beneficial and win-win housing leasing ecosystem, and formed a virtuous circle of technology enabling finance and financial empowering society.

As a bank that started the research and implementation of blockchain technology earlier in China, Bank of Jiangsu relies on the "Su Yin Chain" platform and cooperates with external units to launch services such as "Steel Silver Chain" and "My Nanjing App Inclusive Finance". Chain Technology continuously innovates services.