The first on-chain finance in 2019: how does blockchain technology land in "bank guarantee"?

Article source: 21st Century Business Herald

Reporter: Bao Hui

Original link:

In 2019, the blockchain has attracted much attention. What will happen in 2020?

Compared to artificial intelligence, 5G, IoT and other technologies that have been developed for many years, the blockchain itself has developed much faster than other technologies. Because when resources and capabilities are highly concentrated, technology highlights or inflection points often trigger.

However, the industrialization or large-scale commercialization of a technology is not only a matter of pure technology, but also policy orientation, supporting laws and regulations, and even the acceptance and habit cultivation of audiences.

Li Qiaofeng, founding partner of Dingfeng Capital, told a reporter from 21st Century Business Herald recently that with the national level's attention to blockchain, the valuation of blockchain startups has also risen. From the perspective of investment institutions, the blockchain industry track has just begun. So far, no killer applications have been formed, while the traditional Internet industry already has many killer applications.

Whether blockchain killer applications can emerge in 2020 is still a question. From the perspective of the institutions that have flowed in successively, it doesn't matter exactly where they emerge, as long as they don't step on the field.

Ren Shan, director of blockchain operations at Hang Seng Electronics, said in an interview with 21st Century Business Herald recently that the blockchain business is still far from the time to discuss profitability and is in a continuous investment period.

With the most applicable scenarios, in addition to traditional Internet giants and IT service providers, the financial industry has become the industry that most actively embraces blockchain.

Regulators have also noticed this development. The official website of the central bank announced on December 30 that the central bank's fintech committee meeting had been held a few days ago and that in 2020, a series of fintech regulatory rules such as personal financial information protection and blockchain would be introduced.

The banking sector has the most landings: full coverage of public and private

The pioneers of domestic application of blockchain technology should belong to the financial field, especially the banking industry.

From small personal customers to one-to-one transfer of wealth management, to large and medium-sized enterprises, it is difficult to finance, and the "mysterious" blockchain technology has been widely used by domestic commercial banks in their financial services. For example, the receivables chain platform based on blockchain technology, personal financial transaction platform and inter-bank asset trading platform, etc., the main application directions are cross-border payment, supply chain finance, trade financing and trade settlement.

The banking industry has achieved full coverage of blockchain technology in corporate business, retail business and financial market business. Among the large state-owned banks, ICBC, Agricultural Bank of China, Bank of China, China Construction Bank, and Bank of Communications all have their own blockchain platforms, and investment promotion, livelihood, Ping An, and Zhejiang Merchants of stock banks also have their own blockchain platforms, even the People's Bank He also led the establishment of the "Guangdong, Hong Kong, Macao Greater Bay Area Trade Finance Blockchain Platform".

But what is the banking scenario suitable for blockchain? The first is multi-party collaborative participation, not limited to one enterprise. Second is the need for a strong lead to form a killer blockchain application platform for large-scale applications.

For example, in the bank high-frequency payment scenario, it is actually not suitable to use blockchain, at least not at this stage. However, banks currently focus on public and low-frequency businesses, such as letters of credit, as well as supply chains, asset management, etc. These business scenarios that naturally do not form a central node are more suitable for blockchain technology.

Supply chain finance has become the easiest direction for blockchain to break through in the financial field. In addition to the traditional characteristics of pure online, low cost, guarantee-free, and second-time loan, it can also solve the authenticity and right of account receivables in the supply chain, and enhance the security of supply chain financing products. Quickly establish a "trust" and improve settlement efficiency.

For core enterprises, it can reduce financial costs, reduce interest-bearing liabilities, and beautify statements. For suppliers of core enterprises, the acceptance is also relatively high, because payment, transfer, splitting and financing are convenient, online operations, and circulation paths can be traced. Relying on the core company's credit, suppliers of grades 1 to N can obtain low-cost financing.

Full analysis of blockchain and supply chain financial processes

Taking the two supply chain financial products of Agricultural Bank's "e-Account Connect" and "Cloud Chain Factoring" as examples, at present, Zhejiang Agricultural Bank has established cooperative relationships with a number of core enterprises with a cooperation quota of more than 20 billion yuan.

The specific process is as follows: Agricultural Bank provided a cooperation quota of 300 million yuan to the upstream cluster customers of Zhejiang Subsidiary A, and A's first recommended supplier customers were 230. Core companies and some suppliers have been registered on the Agricultural Bank service platform. . At present, there are five suppliers that carry out online financing on the Agricultural Bank of China platform, with a financing balance of 7.66 million yuan and a comprehensive cost of about 5%.

B is the first-tier supplier of core enterprise A. The two parties signed a 7 million yuan purchase and sales contract. A opened a 7 million yuan receivable electronic voucher through the platform, and the receiver was B.

After receiving the 7 million yuan receivable electronic voucher with the unique payment commitment letter number through the platform, B split it into 5 million yuan, 800,000 yuan, 200,000 yuan and 1 million yuan through the platform. 4 e-vouchers for accounts receivable. Among them, 5 million yuan is used to obtain cash from bank financing, 800,000 yuan is used to pay for C, 200,000 yuan is used to pay for D's transportation, and 1 million yuan is used to hold due.

B After sending the company's articles of association, financial statements, photocopies of purchase and sales contracts and invoices through the platform, as well as the contents of the corresponding receivables electronic voucher, the bank will check it online in real time, and the company account can be “seconded” after passing.

C is the first-tier supplier of B and the second-tier supplier of A. After receiving the 800,000 yuan receivable account voucher with the unique payment commitment letter number split by B through the service platform, the company can proceed. Needs for spin-offs, transfers and financing.

Before the expiry date, ABC will automatically send payment notification to A through the platform. On the payment due date, the bank platform sends a clearing instruction to deduct the funds in the designated account and settle the funds to each account holder of the account holder of the electronic accounts receivable. If the electronic account of the accounts receivable is transferred to the bank, Factoring financing used to repay banks.

Blockchain standardization in the insurance industry starts

The construction of blockchain technology standardization in the insurance industry has officially started, and more than 100 industry organizations have signed up to participate in the development of standards.

On December 27th, the "Initiation of Standardization of Blockchain Application Technology for Insurance Industry and the Launch of the White Paper on Blockchain Insurance Application" were held at the Shanghai Stock Exchange, marking the beginning of the standardization of blockchain technology in the insurance industry. open.

Aiming at the problems such as the lack of standards and application specifications and the decentralized application modes in the current large-scale use of the blockchain, the Shanghai Insurance Exchange, in conjunction with the China Trust and Communications Institute's "Trusted Blockchain Promotion Plan" and insurance industry institutions, jointly launched the "Insurance Industry Zone" Blockchain application technology community standards "work. At present, more than a hundred industry organizations such as China Life Insurance, China Life Insurance, China Taiping, China Re Group, CPIC Group, Taikang Insurance Group have signed up to participate in the development of standards.

At the meeting on the same day, the construction of the insurance risk control blockchain platform was officially launched. PICC P & C, CPIC Ping An, Ping An Ping An, Dadi P & C, China United Insurance, Anda P & C, Sumitomo Mitsui, Shidai P & C, Ansheng 14 insurance institutions including Insurance, Sunshine Property & Casualty Insurance, Huatai Property & Casualty Insurance, Yongcheng Property & Casualty Insurance, Dubang Property & Casualty Insurance, and Huaan Property & Casualty Insurance formally announced their joining the alliance chain platform.

The insurance risk control blockchain platform takes insurance fraud in the field of travel insurance as an entry point, and aims to find duplicate insurance behaviors during the insurance underwriting phase through data sharing, providing institutions with more dimensions of insurance risk control information.

The rise of third-party service providers

Third-party IT service provider Hang Seng Electronics currently has a rich and mature business on the blockchain.

The "China Trade Finance Interbank Transaction Blockchain Platform" is a trade finance ecosystem blockchain project led by the China Banking Association, with 11 head banks and 4 technology companies participating. This platform has fully implemented the domestic letter of credit and forfaiting business on the chain, and the underlying layer of its existing blockchain is completely provided by Hang Seng.

Ren Shan, Director of Blockchain Operations at Hang Seng Electronics, said in an interview with 21st Century Business Herald recently. "Investment in the blockchain, our layout may be improved and updated with the further needs and scenarios of customers. On the whole, there have been good examples in the fields of depository, information disclosure, digital transactions of assets, supply chain finance, and investment and financing. "

Ren Shan said that some small and medium-sized financial institutions went to third parties because of their insufficient research and development capabilities, but there were also many financial institutions, such as some of the leading banks' research and development institutions, whose IT capabilities were also very strong, even with tens of thousands of teams. "Why do head banks invest so many people? It is because their original products and original research foundations will not be completely abandoned, and reuse or personalized development is also the core strength of financial institutions and the foundation for their continued development . "

The founder and chairman of Shuqin Technology, Gao Hang, introduced to the 21st Century Business Herald reporter on December 31. He and his core team have studied blockchain since 2013 and have now realized blockchain technology in different financial sectors such as banking, insurance and securities. Sub-industry landing.

Digital Qin Technology has built a blockchain-based credible insurance big data credible circulation and management tool for China Credit Guarantee, a bank certificate for Hangzhou Bank's online business operation process, and a blockchain-based certificate service system for Guotai Junan. Establish an electronic identity authentication system for Xingye Securities to realize the separation of business customization and data protection under a shared ledger.

Broker application is concentrated in the fields of ABS, deposit certificate, etc.

At present, securities companies mainly use blockchain technology in ABS, certificate deposit, asset management products, and collection of reasonable wealth.

GF Securities' 2019 annual report disclosed that the company improved its independently developed ABS trusted cloud system based on blockchain technology to monitor the operation of basic assets of the CMBS commercial property special plan, eliminating the blind spot of asset monitoring by managers.

Blockchain technology can improve the clearing and settlement links in securities trading, and improve efficiency by reducing intermediate links. At the same time, blockchain technology is also useful in some scenarios that need to prove the authenticity and integrity of data.

Guotai Junan has issued the first domestic ABS based on the securities company's two financial debts as the basic asset, using the blockchain to realize the construction of a regulatory system from three aspects: information disclosure, risk management and control, and ex post accountability.

There are many scenarios in the securities industry that can be combined with the blockchain. For example, the blockchain on ABS can solve the problem of trust on the underlying assets, and it can also solve the problem of too many intermediaries and inefficient processes, Gao Hang said.

In January 2019, based on FISCO BCOS, Shenzhen Stock Exchange United Nations Taijunan, Pacific Insurance, Weizhong Bank, etc. launched a certificate deposit service, which is the first blockchain application platform for securities companies to implement this service.

In general, brokerage institutions are very cautious about the use of new technologies. At present, domestic fund companies are less involved in blockchain.

From the perspective of people in various industries, blockchain as an open source technology is actually not a high technical barrier, but blockchain is not only a technology, but also a new way of thinking. Therefore, it combines new ideas, new business models and the actual industry. is the most important. And now many application scenarios may not require the blockchain, and some are even for the blockchain.

The blockchain cannot be considered to solve everything. The combination of the blockchain with existing systems and mature technologies may be more conducive to the implementation of the overall solution, Ren Shan said.