The implementation of blockchain technology has blossomed, and the transaction scale of several banks has exceeded 100 billion yuan

Source of this article: Securities Daily

Reporter: Li Bing

In 2019, financial technology has become the "highlight" of innovation and development of many banks, and blockchain technology is also thriving in the soil of technology.

A number of banks disclosed in their 2019 annual reports that the application scenarios of banking institutions in the blockchain currently cover many areas such as asset securitization, industrial chain finance, domestic letters of credit, and Forfaiting. "Securities Daily" reporter found from the annual report that many banks have set up blockchain laboratories, and the number of "on-chain" transactions disclosed by many banks have exceeded 100 billion yuan. Among them, the transaction volume of CCB's blockchain trading financial platform exceeded 400 billion yuan.

In an interview with the Securities Daily, Li Hui, deputy dean of Huobi Blockchain Research Institute, said, "Blockchain technology will no longer rely too much on the trust model between financial systems due to its security, transparency and tamper-proof characteristics. As an intermediate third party, the banking business can realize the 'multi-centralized' digital transactions. In addition to helping banks reduce costs and improve efficiency in various businesses, the most important thing is to promote financial services and product innovation and seize digital First-mover advantage in finance. "

Build a blockchain application platform

Many state-owned banks in action

Although the state-owned big banks disclosed in the annual report that the blockchain involved in the field is not much, but the "Securities Daily" reporter still noticed that a number of banks have established a blockchain laboratory. In addition, blockchain is also highly valued in the field of trade finance.

The annual report shows that the Industrial and Commercial Bank of China has set up a financial technology research institute and set up several laboratories such as 5G and blockchain. Among them, the blockchain platform was the first in the industry to pass the authority certification of the blockchain of the Ministry of Industry and Information Technology, and the first to complete the filing of the Internet Information Office. In terms of smart government affairs, the Industrial and Commercial Bank of China and the Xiong'an New District Management Committee jointly issued the "Blockchain Platform for Fund Management for Requisition and Relocation".

Blockchain technology has also begun to show its strength in banking outlets. According to the annual report of the Industrial and Commercial Bank of China, the bank released a new generation of smart bank flagship stores in Beijing, introducing 54 cutting-edge technology applications such as 5G, artificial intelligence, blockchain, and Internet of Things.

Chen Wen, deputy director of the Pratt & Whitney Finance and Intelligent Finance Research Center of the School of Finance, Southwestern University of Finance and Economics, told reporters at the Securities Daily that the application of blockchain technology can not only solve the pain points of banking business, but also help the transformation of the internal system of the bank Both the system and the business process will bring about optimization, and more importantly, a better balance between preventing financial risks and innovation. "

In 2019, the Bank of Communications landed its first innovative product such as green asset-backed notes enabled by blockchain technology, and established a laboratory to provide incubation support for artificial intelligence, blockchain, big data, 5G and other R & D projects. In terms of the application of blockchain technology, China Merchants Bank has currently implemented in many business scenarios such as asset securitization, industrial chain finance, domestic letters of credit, and Forfaiting. Among them, "Chain Integration" is the first blockchain asset securitization platform launched in the industry. Currently, 8 asset-backed securities businesses have been issued, with a total amount of RMB 100 billion issued; 4 asset-backed bill businesses have been issued, with a RMB 3.1 billion issued yuan. Bank of Communications also disclosed in its annual report that it is actively participating in the People's Bank of China's trade finance blockchain platform, exploring solutions for cross-border business finance trade scenarios; joining the China Banking Association's "China Trade Finance Cross-Border Transaction Blockchain Platform", and Jointly implemented the first Forfaiting asset transfer business on the platform with ICBC.

In its annual report, China Construction Bank also disclosed the situation of blockchain trade finance platform. According to the disclosure, the blockchain trade finance platform deploys domestic letters of credit, forfaiting, international factoring, refactoring, etc., with a cumulative transaction value of more than 400 billion yuan, attracting more than 50 customers in the same industry. In addition, the bank also used blockchain and big data technology innovation to launch the "Migrant Worker Benefit" platform, serving more than 4 million customers.

Bank of China is to promote the construction of innovative R & D bases in the Xiong'an New Area, the Yangtze River Delta, and the Guangdong-Hong Kong-Macao Greater Bay Area, continue to carry out basic research on new technologies, and actively promote the application scenarios of new technologies such as 5G, Internet of Things, blockchain, and virtual reality. , The first blockchain bond issue project in the industry.

In terms of blockchain, the Postal Savings Bank launched the U-chain Forfaiting business system to complete the first cross-chain transaction; launched the construction of a blockchain technology platform to support the next application scenario expansion and cross-chain docking.

In terms of application of blockchain technology, Agricultural Bank of China has landed the first domestic pension alliance chain, and cooperated with Taiping Pension Insurance Co., Ltd. to launch a pension blockchain application system. The business processing time has been shortened from 12 days to 3 days. Agricultural Bank of China also launched the online supply chain financing product "e-Account Connect" to provide core online supply chain enterprises and suppliers with full-process online finance such as issuance, splitting, transfer, factoring financing, and payment due service.

From the perspective of the blockchain-related business disclosed by the state-owned big bank, the application of blockchain in the field of trade finance has received considerable attention. Li Hui explained, "Trade finance includes trade settlement, trade financing and other basic services. Among them, trade finance is the core of trade finance. In the past trade finance business, financial support is difficult to fully cover SMEs. Blockchain cannot be tampered with And traceability, which greatly improves the credibility of the data on the chain. On the one hand, it reduces the cost of risk control of financial institutions such as banks; on the other hand, it enables trade finance business to cover more SMEs, banks Of customers are more extensive and diverse. "

Layout blockchain applications

Stock banks and city commercial banks are unwilling

In addition to large state-owned banks, the application of blockchain technology has also been frequently mentioned by stock banks and city commercial banks.

The blockchain trade finance alliance platform initiated by China CITIC Bank has achieved the joining of more than 20 banks, and the scale of on-chain transactions exceeded 100 billion yuan; the blockchain Forfaiting platform has become the largest blockchain trade finance platform in the domestic banking industry.

In terms of blockchain, China Merchants Bank has improved and developed the standard branch chain and BaaS (blockchain as a service) platform ecology, with a total of 25 applications.

Ping An Bank has established a unified blockchain integrated service platform for the entire bank, which is used in supply chain finance, bankruptcy and liquidation voting, cloud signing and certificate deposit, and traceability. In 2019, it achieved more than 350,000 business transactions.

Everbright Bank mainly focuses on innovative applications of blockchain, creating a "sunshine blockchain" and launching financial products such as "blockchain payment", "blockchain custody" and "blockchain generation". With its blockchain technology innovation fund service model, it has established a "digital financial technology laboratory" with China Xiong'an Group, completed the docking with Ant Financial's "Shuangliantong" blockchain platform, and realized the cooperation of Xiong'an Engineering Project Fund Management Platform ; Jointly build the Forfaiting blockchain trading platform with financial institutions such as Bank of China, China CITIC Bank and Minsheng Bank.

Zheshang Bank disclosed the relevant situation of the receivable chain platform. At the end of the reporting period, Zheshang Bank had 2,493 receivable chain platforms, an increase of 76.81% over the end of the previous year; the balance of receivable confirmation was 96.108 billion yuan, an increase of 46.34% over the end of the previous year.

Li Hui admitted that the future banking industry's answer to whether the blockchain technology layout will be more in-depth is affirmative. She believes that “through the embedding of blockchain technology, banks can realize cost reduction and efficiency improvement based on the original business, and attract more customers to achieve a win-win situation. The majority of B2B business, with the popularization and development of blockchain technology, banks will gradually deploy the blockchain to more to C business areas, such as credit card points management. "