First, the impact of blockchain technology on the financial sector
Second, the specific application of blockchain in the financial field
Trade finance is the use of structured short-term financing tools by banks to finance the parties based on goods and accounts in commodity transactions. It is one of the most important businesses in the banking business. For example, Company A applies for trade financing from Bank B. After reviewing the transaction contract and financial information, Bank B will issue a loan for trade to Company A if it confirms that it meets the loan requirements.
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In the above process, because the bank needs to review the applicant's production and operation status and the collateral status, the trade financing process has complicated and cumbersome verification procedures, poor timeliness and information opaque. Banks need to check a large amount of information, data and funds between the two parties. The participants of the transaction have a single source of information, and the information is opaque and incomplete. This not only causes the transaction to face significant risks, but also causes higher financing costs for the enterprise. In practice, the following reasons often lead to difficulties in financing SMEs, and it is difficult for banks to match high-quality SMEs.
First, from the perspective of efficiency, because the amount of SME loans is not large, but the procedures for the issuance of each loan, the management links, such as investigation, evaluation, approval, post-loan management, etc. are all the same, which increases the cost of bank loans. .
Second, most of the types of loans provided by banks are not suitable for the development of small and medium-sized enterprises. The types of loans are single, the term is too long, and interest rates are too narrow. This model does not suit the needs of SMEs for funds.
Third, banks implement strict risk control systems to improve the quality of loans.
2. Application of blockchain technology in the field of trade finance
According to the financial credit account website of Internet technology, the financial account-book technology company and the small and medium-sized bank Internet Finance Alliance (IFAB) jointly created a blockchain-based IFAB trade financing network, which was launched in March 2019. . Financial Accounts and China Railway Construction Asset Management Co., Ltd., China Storage Development Co., Ltd., Pangang Group Tianfu Hui Financial Management Co., Ltd., as well as Jiangsu Bank, Suzhou Bank, Jiaxing Bank, Nanyang Commercial Bank, Jincheng Bank and many other large enterprises Sign a cooperation agreement with the bank.
The IFAB trade network connects banks and SMEs and helps companies and banks better develop their trade finance business through blockchain technology. The bank's own enterprise customers can access the IFAB network through the bank's silver enterprise. The customer data is stored in a separate bank system and is not shared between banks. The new enterprise users of IFAB Tradelink Network can pass the market platform (Market- Place) After accessing the network after certification, the IFAB network can automatically match the bank according to its business characteristics and its own situation, providing accurate financing push services to help them obtain a better financing experience, and banks can also efficiently obtain quality enterprises.
For financial supervision, both external regulators and group internal auditors face the following problems:
First, the financial system information of the regulated enterprises is asymmetric, and the supervision of the enterprises depends on the business information of the enterprises. The information asymmetry intensifies the difficulty of supervision and implementation.
Second, some supervised companies arbitrarily misappropriate funds and data fraud, resulting in lack of credible support and lack of trust in monitoring. For example, the risk of P2P online lending that has already occurred before, there are problems such as the platform randomly diverting funds and even running the road, which makes it impossible for investors to withdraw cash, and it is difficult to supervise the regulatory agencies.
Third, the supervision of financial regulatory agencies is often limited to specific areas, which tends to lead to low regulatory efficiency, difficult to grasp the entire market information, and there is a serious lag. In recent years, Internet financial products have emerged. Although the regulatory authorities have strengthened the special supervision of Internet products and continuously issued relevant regulatory documents, they still face the problems of “regulatory lag” and “information asymmetry” in the ever-changing Internet finance field.
2. Blockchain technology application of blockchain public welfare poverty alleviation fund supervision
Due to the problems of issuing a large number of approval levels, lagging funds and delaying the misappropriation of funds in the process of issuing public welfare poverty alleviation funds, Guizhou has made great efforts to improve the efficiency of poverty alleviation funds in order to further optimize the poverty alleviation fund allocation process and improve poverty alleviation fund management efficiency.
On October 30, 2016, ICBC signed a strategic cooperation agreement with Guimin Group, which is responsible for poverty alleviation work in Guizhou Province, and adopted a joint construction method to build a blockchain management system for poverty alleviation. According to the Guizhou Daily, the goal of the blockchain management system is to:
First, give full play to the characteristics of “multi-party consensus”, “information sharing” and “transaction traceability” of blockchain technology to realize the transparent operation of poverty alleviation projects and approval of funds.
Second, through the docking with the banking system, the poverty alleviation funds will be allocated information and projects, and the approval information of the funds will be checked to ensure that the poverty alleviation funds are earmarked for special purposes and avoid misappropriation.
In the Poverty Alleviation Fund Blockchain Management Platform, Guimin Group built the Guizhou Poverty Alleviation Fund Management Chain for the management of poverty alleviation projects and the approval of funds; ICBC built the Guizhou Poverty Alleviation Fund to confirm the use of funds. Apply for and handle the transfer of poverty alleviation funds. The management chain of the Guimin Group and the confirmation chain of the Industrial and Commercial Bank of China, the double chain realizes the chain interconnection, and the Guimin Group and the Industrial and Commercial Bank of China are the link nodes. On May 16, 2017, the poverty alleviation management platform successfully allocated the first 1.57 million yuan of poverty alleviation funds, marking the successful use of the “transaction traceability” and “non-tamperable” of the blockchain technology to realize the “transparent use” of poverty alleviation funds. The goal of precision delivery and efficient management.
At present, the Guizhou provincial government is gradually introducing information such as poverty alleviation households and social integrity into this system consisting of a financial chain and an administrative chain. The follow-up will quantify and accurately evaluate the effectiveness of each poverty alleviation fund.
Author: Yun-Feng Chen, Zhong Lun Law Firm Wende senior partner, director of the Finance Committee of the Internet