渝农商行发展前景,渝农商行调研

『一』 Times have changed, what exactly is the core of the blockchain economy

Since the birth of Bitcoin, there have been successive emergences around the world. There are more than 1,600 virtual currencies, forming a huge industrial chain ecosystem around the generation, storage, and trading of virtual currencies. But overall, the industry is still in its infancy and is still far from the real value application area.

The core of the blockchain economy lies in the reconstruction of business logic and organizational form, so it is necessary to obtain application examples in multiple industries to demonstrate its value. This article will explore the business models of blockchain applications in various industries from the perspective of combining blockchain with industry needs.

First of all, the core of blockchain is to solve the problem of credit:

Credit is the foundation of all commercial activities and finance. The United States has implemented trusted identification since 2011, while China has implemented a real-name system to achieve supervised information dissemination. The significance of blockchain is that it has established decentralized trust from a technical level for the first time and realized a completely distributed credit system.

Secondly, blockchain solves the problem of value exchange:

Traditional networks can realize point-to-point transmission of information, but cannot realize point-to-point transmission of value. Because information is allowed to be copied, and value must be authentic and unique, it is necessary to rely on a centralized organization to achieve value transfer. Blockchain perfectly solves this problem and provides a method to realize point-to-point transfer of value. During the value transfer process, accounting is realized by the network without relying on a centralized institution. Therefore, blockchain is expected to become the infrastructure for building new finance and the cornerstone of the future value Internet.

Application of blockchain

Currently, there are two main modes of blockchain application:

1) Native type Blockchain applications: directly based on decentralized blockchain technology, realizing applications such as value transfer and transactions, such as digital currency;

2) "Blockchain+" model: combining traditional scenarios with Combined with the underlying protocol of the blockchain to improve efficiency and reduce costs. It is expected that the application of blockchain in various industries will be dominated by the second model.

Blockchain has five core attributes, namely: transaction attributes (value attributes), certificate attributes, trust attributes, intelligence attributes, and traceability attributes. The above core attributes are combined with the needs of the industry to solve the industry's pain points and become a business model for blockchain applications in various industries.

Blockchain + Bank

1. Cross-border payment

Cross-border payment is a pain point that has long plagued the banking industry. Traditional cross-border payment methods include two major categories: first, online payment, including electronic account payment and international credit card payment, suitable for retail small amounts; second,The bank remittance model is suitable for large-amount transactions; both have problems such as long arrival cycles, high fees, and low transaction transparency. Especially with the rise of cross-border e-commerce in recent years, convenient, fast, safe and low-cost cross-border payment has become an urgent need for the industry.

The role of blockchain:

The characteristics of blockchain are deintermediation and open and transparent transactions. There is no third-party payment institution to join, which shortens the payment cycle, reduces costs, and increases Transaction Transparency. For example, in December 2017, China Merchants Bank teamed up with Wing Lung Bank and Wing Lung Shenzhen Branch to successfully implement cross-border RMB remittances between the three parties using blockchain technology. Its clearing process is safe, efficient and fast, greatly improving customer experience.

2. Supply chain finance

The pain points in this field are the long financing cycle and high costs. Centered on the core enterprise system of the supply chain, it is difficult for third-party credit enhancement institutions to authenticate the authenticity of various relevant vouchers in the supply chain, resulting in long manual review times and high financing costs.

The role of blockchain:

Blockchain introduces consensus mechanism, existence proof, non-tampering, traceability and other features into supply chain finance, without the need for a third-party credit enhancement agency Identify the authenticity of various relevant vouchers in the supply chain, thereby reducing financing costs and shortening the financing cycle. For example, in April 2017, the listed company Yijian and IBM China Research jointly launched the blockchain supply chain financial service system "Yijian Block". The system focuses on pharmaceutical scenarios and currently has more than 30 pharmaceutical distribution companies. Successfully registered in the "Yijian Block", as of the end of July, the number of transactions had been close to 8,000, and the total investment amount exceeded 100 million yuan.

3. Digital Bills

The pain point of the digital bill industry lies in the long-standing problems of "false bills" and "one vote selling more than one", which have brought challenges to the bill financing business of the banking industry. risk.

The role of blockchain:

The existence proof and non-tampering characteristics of blockchain effectively solve the problem of false digital bills; at the same time, blockchain solves the problem of double Spending money can avoid "one ticket selling too many". For example, Shenzhen Blockchain Financial Services Co., Ltd. issues bill chain products to provide bill financing services based on blockchain to solve the bill financing needs of small, medium and micro enterprises. Cooperative banks include Ganzhou Bank, Guiyang Bank, Suzhou Bank, Shizuishan Bank, Langfang Bank, Wuhai Bank, Jilin Jiutai Rural Commercial Bank, Yaodu Rural Commercial Bank, Shenzhen Rural Industry Bank, Weifang Bank, Zhongyuan Bank, etc. In addition, Zheshang Bank, JD Finance, Hang Seng Electronics, HNA, etc. are also verifying blockchain digital bill services.

Blockchain + Securities

1. Asset Securitization

Asset securitization uses future income as a guarantee to obtain current financing. The pain points in this field are: there are many participating entities, many operating links, low transaction transparency, information asymmetry, andThe authenticity of layer assets cannot be guaranteed.

The role of blockchain:

Blockchain introduces attributes such as existence proof, non-tamperability, and consensus mechanism for asset securitization, which can monitor the true situation of assets in real time and solve the problem of It solves the problem of trust of all parties in the transaction chain in the underlying assets. Various assets such as equity, bonds, bills, income certificates, warehouse receipts, etc. can be integrated into the blockchain and become digital assets on the chain, improving asset circulation efficiency and reducing costs. For example, in May 2017, Internet Finance and partners including Baiqian Leasing and Huaneng Trust jointly issued an asset securitization ABS project supported by blockchain technology, with an issuance scale of 424 million yuan.

Blockchain + Insurance

1. Insurance business

The insurance industry has problems such as information asymmetry and lack of trust between customers and insurance institutions: Users It is difficult to choose an insurance product that suits you, and insurance institutions face the risk of insurance fraud.

The role of blockchain:

The decentralized, open, transparent, and traceable characteristics of blockchain establish a good communication channel between insurance institutions and users; insurance subject matter Information is managed uniformly on the blockchain and cannot be tampered with, helping insurance institutions avoid the risk of insurance fraud; at the same time, smart contracts can improve work efficiency and reduce costs. For example, French insurance giant AXA is using the Ethereum public blockchain to provide automated flight delay compensation for air travelers. If the flight is delayed for more than 2 hours, the "smart contract" insurance product will automatically pay claims to passengers.

2. Credit information management

The pain point in this field is that credit information agencies have limited data collection channels and lack of data sharing, making it difficult to accurately characterize the credit status of individuals or institutions; in addition, There is also the issue of how to protect user privacy during the data collection process.

The role of blockchain:

The blockchain has the characteristics of trustlessness, consensus, and non-tampering. At the technical level, it ensures that effective protection of user privacy can be achieved. Limited, controllable credit data sharing and verification. For example, Ping An's blockchain credit reporting business is now online. In addition, domestic startups such as Shanghai Juzhen, LinkEye, Bubi Blockchain, etc. are also exploring joint credit reporting and safe certificate deposits.

As a basic technology, blockchain has great application value in many industries with distributed processing, peer-to-peer transactions, and rapid establishment of trust relationships. Its core is to solve the credit problem and realize the point-to-point transmission of value. Therefore, it is considered to be the cornerstone of the future value Internet.

The core of the blockchain business model is to use the innovative attributes introduced by the blockchain and combine it with traditional industry applications to realize the reconstruction of business logic in order to create new application scenarios or improve efficiency. cut costs.

Blockchain will also extend to all areas of social life: Blockchain solves problems such as the management, transaction, and transfer of digital assets, and therefore will play an important role in the wave of asset digitization, such as supply chain management, data Applications such as services, asset management, public services, and the Internet of Things are gradually being implemented in various fields, and "blockchain+" is becoming a reality.

『二』The necessity of studying the impact of blockchain technology on the banking industry

Changing the hardware-heavy and asset-heavy model of banking technology investment, through physical Decentralized data storage and computing methods realize bank risk diversification and cost transfer.

『三』 registered capital of 8 billion yuan! Another corporate headquarters settled in Chongqing

Another financial institution settled its headquarters in Chongqing! On September 20, Chongqing Ant Consumer Finance Co., Ltd. (hereinafter referred to as "Ant Consumer Finance"), of which Ant Group is the major shareholder, launched preparatory work in Chongqing, with a registered capital of up to 8 billion yuan.

Ant Consumer Finance is the third consumer finance company in our city after Ma Ma Consumer Finance Co., Ltd. (hereinafter referred to as "Masa Consumer") and Chongqing Xiaomi Consumer Finance Co., Ltd. (hereinafter referred to as "Xiaomi Consumer Finance") It is a licensed consumer finance company and the second consumer finance company initiated and established by an Internet giant.

“As an emerging financial service institution, consumer finance companies have been established one after another, which has provided assistance to Chongqing in building an inland international financial center and an international consumption center city, and has played a good role in stimulating the vitality of Chongqing’s consumer market. supplementary role." said the relevant person in charge of the Municipal Commerce Commission.

Why choose Chongqing?

The consumer market is huge and the financial ecosystem is improving

At present, Ant Group’s comprehensive strength in the field of consumer finance ranks first in the country. The prospectus released by the group shows that as of June 30, Ant Group has facilitated a consumer loan balance of 1.732 billion yuan, covering approximately 500 million users, and ranks first in the domestic market share. Among them, as small-amount flexible consumer loans, the daily interest rate of most Huabei loans is about 4%, and the average loan balance of Huabei users is about 2,000 yuan.

Just over 3 months before the preparations for the launch of Ant Consumer Finance, Xiaomi Communication Technology Co., Ltd. has already deployed in Chongqing: On May 30, Xiaomi Consumer Finance, with a registered capital of 1.5 billion yuan, officially opened in Jiangbeizui. Open for business.

In addition to Xiaomi Communication Technology Co., Ltd., the other four shareholders of Xiaomi Consumer Finance are all Chongqing companies: Chongqing Rural Commercial Bank, Jinshan Holdings, Dashun Electrical Appliances and Jinguan Jie Lai Hardware and Electrical Market.

"Where consumer finance companies are located depends on the activity of the local consumer market and its financial ecology." Zhou Bin, President of Xiaomi Consumer Finance, said, "The reason why we choose Chongqing is that Chongqing is increasingly The growing consumer market, the rapid improvement of residents’ purchasing power andFactors such as the strong consumption desire of Chongqing people have exerted great attraction on consumer finance companies. ”

Data provided by the Municipal Commerce Commission shows that in the first seven months of this year, the city’s social zero growth rebounded by 2 percentage points from the first half of the year, 4.7 percentage points higher than the national level; in July, it grew by 7.6%, the fourth consecutive month Achieve positive growth every month.

According to the "Re-Ranking of China's Top Ten Consumer Cities" released by the 21st Century Economic Research Institute in early July, from January to May this year, Chongqing's total retail sales amounted to 426.9 billion yuan. Surpassing Guangzhou, it has become the "third city of consumption" after Shanghai and Beijing.

The booming development of the financial industry is also one of the important reasons for attracting consumer finance companies to settle in Chongqing. "In recent years, Chongqing has As the central city of the country and the only municipality directly under the central government in the central and western regions, it is one of the more prosperous regions in the country's financial ecology, and its consumer finance development has maintained a high level in the country. " said Pu Yongjian, professor and doctoral supervisor at the School of Economics and Business Administration of Chongqing University.

It is understood that in 2019, the added value of Chongqing's financial industry was 209.8 billion yuan, accounting for about 10% of GDP. As of now, the city's The total number of financial institutions has reached more than 1,800, and a full industry system has been formed such as banking, insurance, securities, funds, trusts, and consumer finance.

On December 12, 2019, Haitangxi Station of the Rail Loop Line, rail train , the Sheraton Twin Towers appear in the same frame as the East Watergate Bridge and Chaotianmen Raffles City Building in the distance. Special photographer Zhong Zhibing (file photo of this newspaper)

What can consumers get?

Loans are available for buying cars, home appliances, and travel and education

What is a consumer finance company?

“Consumer finance companies are a new type of non-bank established with the approval of the China Banking and Insurance Regulatory Commission. Financial institutions, which do not accept deposits from the public, mainly provide residents with loans for consumption purposes. " Zhao Guoqing, founder and chairman of Consumption Now, explained.

For example, when consumers purchase vehicles, home appliances and other goods, if they are unable or do not want to pay in full in the short term, they can use installment payment. This is consumption Finance.

In recent years, with the changes in residents’ consumption needs, loans for home decoration, tourism, education and other consumption can also be obtained from consumer finance companies.

From consumer finance companies How much money can you borrow? According to relevant national regulations, consumer finance loans should not exceed the customer's risk tolerance, and the maximum amount should not exceed 200,000 yuan. Compared with banks, the amount of loans consumers can obtain from consumer finance companies is not large. But lending is faster, repayment is more flexible, and the quota is "recyclable". Within the quota, you can withdraw cash, installments, consumption, and borrow and repay at any time.

What is the loan interest rate? Consumer FinanceThe company will price the borrower after conducting a risk assessment in accordance with relevant national laws and regulations.

As an emerging financial institution, the customer base of consumer finance companies is mainly young people. According to the "China Consumer Finance Company Development Report 2020" recently released by the China Banking Association, in recent years, as the consumer market has grown and consumption concepts have continued to change, the proportion of middle-income groups has continued to rise.

As a result, consumer finance has developed rapidly: as of June this year, the cumulative number of registered users of Immediate Consumption exceeded 100 million, and the cumulative number of consumer loans issued exceeded 470 billion yuan; as of the end of August, only 3 stores had opened in Chongqing. Xiaomi Consumer Finance has lent more than 1.4 billion yuan in total over the past few months and served more than 200,000 customers.

How will the future develop?

Powered by big data intelligence, the prospects are bright

In fact, behind the rapid development of consumer finance, there is strong financial technology support.

"The widespread application of big data intelligent technology has further improved the convenience and security of consumer financial products." Zhou Bin said, for example, big data and cloud computing technology are used in customer acquisition and risk control. , operations and other links, we can more fully explore consumer needs and improve risk control levels; and the use of mobile payment and other technologies has greatly improved the user experience.

In terms of financial technology, Ant Group has long had a presence in Chongqing. The above-mentioned prospectus shows that Chongqing Ant Shangcheng Small Loan Company and Chongqing Ant Small and Micro Loan Company both belong to the micro-loan technology platform of Ant Group and mainly provide small loans and related technical services. As of the end of June, Ant Shangcheng's total assets were 21.545 billion yuan, with a net profit of 620 million yuan in the first half of the year. Ant Micro's total assets were 24.177 billion yuan, with a net profit of 433 million yuan in the first half.

"With the deep integration of technologies such as the Internet, big data, and artificial intelligence with consumer finance, the development pattern of the consumer finance industry will be reshaped." Pu Yongjian believes that the development of consumer finance depends on the improvement of the credit reporting system , and blockchain is a "sharp tool" to solve the credit problem. "Chongqing's blockchain and the development of the entire smart industry rank first in the country, and consumer finance is deeply integrated with it, and there is great potential."
< br /> Proofreader: Luo Jianjun

『四』2022 Financial Technology Week: Commercial banks show off their technological style

Author: Wan Mu

Recent , in order to implement the requirements of the "Notice of the General Office of the People's Bank of China on Carrying out Relevant Work During the 2022 National Science and Technology Activity Week", commercial banks actively carried out the "2022 Fintech Activity Week" with the theme of "Into Technology, You and I Walk Together" ". During the event from May 21st to 28th, all banks will integrate "online + offline"In a cooperative manner, the results of technology promoting the quality and efficiency of financial services and technology empowering high-quality development of banks were demonstrated to the public.

ICBC: Extremely Intelligent ICBC

During the event, ICBC demonstrated to the public its first personal financial banking strategic system, which mainly includes "Intimate ICBC, Extremely Intelligent ICBC" , ICBC without boundaries, ICBC with confidence" aims to express "service +, wisdom +, scene +, safety +" as the core expression to further promote the implementation of ICBC's "first personal finance banking strategy". Among them, "Ji Zhi ICBC" creates a series of experiential activities through online platforms such as mobile banking, embodying the value concept of "more open, more affordable and more convenient", improving personal customer experience and creating a good service reputation. Mainly reflected in three aspects:

1. Realize the transformation from "making functions" to "making experiences". ICBC regards "what customers need, the bank will provide" as the basic logic of product innovation, and has created ICBC Intelligent Asset Allocation, AI Investment, ICBC e Payment, ICBC e Bill, ICBC Touchless Payment, and ICBC Express Remittance. and other star products.

2. Use technological innovation to make services more convenient. ICBC innovates risk assessment technology and models, and has launched a series of new financing products, represented by ICBC Financial e-Loans and ICBC Small and Micro e-Loans, that are completely credit-based and have no face-to-face review, no guarantee, no mortgage. This type of product is easy to apply for, with flexible terms and instant loans, allowing customers to experience the product innovation achievements that integrate technology and business, as well as intelligence and convenience.

3. Give back to customers more accurately. In order to allow customers to experience the "sense of gain" more intuitively, Duan Gao has created distinctive brands such as ICBC i-Go, e-Business Dream Assistance Plan, ICBC Huiju, and Pinyue Good Life, allowing customers to enjoy real discounts.

Agricultural Bank of China You Ranxiao: Precision services help rural construction and give technological wings to "agriculture, rural areas and farmers"

During the event, Agricultural Bank of China showed the public the Bank's focus on major national strategies , Promote the implementation of science and technology plans, use technological innovation to drive high-quality development, promote financial inclusion and benefit people's livelihood, and provide customers with smart, convenient and safe financial services.

As the national team and main force in serving “agriculture, rural areas and farmers”, Agricultural Bank of China focuses on the pain points and difficulties of rural customers in counties and combines more than 70 years of profound accumulation in serving “agriculture, rural areas and farmers” with emerging digital technologies. , strengthen science and technology to empower rural revitalization. We conducted in-depth research on the financial needs of farmers and innovatively launched the "Huinong E-Loan" online financial product; we developed and launched a rural collective "three capital" management platform to help Shenhan improve the digital level of rural governance; we cooperated with the National Rural Revitalization Administration to jointly launch the "Enriching People Loan" "Huinong credit products introduce "financial vitality" to rural revitalization.

The Agricultural Bank of China resolutely implements the national strategies of strengthening the country through science and technology, digital China and network power.Department of Banking, striving to build a smart bank with first-class customer experience and the best digital ecological bank in the inclusive field of "agriculture, rural areas and farmers".

China CITIC Bank: Building a first-class technology-based bank

China CITIC Bank vigorously promotes various financial knowledge and financial technology innovation achievements to the public at the event.

In recent years, China CITIC Bank has thoroughly implemented new development concepts, followed development trends, and always adhered to the goal of building a first-class technology-based bank, and has launched a number of technological innovation projects. In 2021, China CITIC Bank, under the guidance of the Science and Technology Department of the People's Bank of China, launched the "I Do Practical Things for the People" and the results conference on the management of rare characters in the financial industry, officially open sourced the full set of "CITIC Solutions" to solve the problem of rare characters, and promoted products with rare characters. Standardize and share results with the entire industry. In the same year, China CITIC Bank fully launched the "Xinchuang Full Stack Cloud Project" and is committed to building a "distributed all-cloud architecture" that fully supports cloud native and national core and national soul during the 14th Five-Year Plan period, and achieves leapfrog in technology services and other aspects. development and significantly enhance the comprehensive technological competitiveness of CITIC Bank.

China CITIC Bank stated that it will continue to actively fulfill its mission of serving customers, explore the business applications of new technologies, so that the results of financial technology innovation can truly benefit the general public, and strive to create a "responsible, warm, and competent bank". The best comprehensive financial service provider with distinctive features and value."

China UnionPay: Actively carry out online publicity activities for the National Science and Technology Week

In addition to the above commercial banks, China UnionPay also actively responded to the National Science and Technology Week, on May 21 From May 28th to May 28th, a series of science popularization activities will be carried out through online special open courses for colleges and universities, financial digitalization forums, online exhibition halls, etc.

The "Financial Technology Online Open Course" is open to teachers and students in universities. China UnionPay invites technical experts in the fields of big data, risk control, Internet of Things and other fields to introduce the research and application of related technologies to facilitate universities. Teachers and students improve their understanding of cutting-edge technologies in the financial payment industry;

The "Financial Digitalization Online Forum" is an initiative of China UnionPay, Shanghai Financial Data Port and Shanghai Fintech Industry Alliance to invite peer units to carry out financial technology development. Technology application exchange, the forum covers cutting-edge technology fields such as blockchain and cloud computing and multiple application scenarios such as mobile payment, discussing new achievements in the development of financial technology in the industry from different dimensions and perspectives such as industry trends, technology development, and business innovation;

In order to enhance the public participation experience, during the event, UnionPay opened the UnionPay “Financial Technology Achievements Virtual Exhibition Hall” to the public. This exhibition hall comprehensively displays UnionPay’s innovative achievements in the field of financial technology over the past 20 years since its establishment and will provide the public with better services. An immersive online exhibition experience. In addition, UnionPay also planned “financial technology and science popularization”"Display", which organizes popular science pictures, texts and videos covering financial technology, security science, convenience innovation and other fields, and displays them to the public through various channels.

In addition to online, banks also use computers to broadcast Promotional videos, production of promotional display boards, distribution of promotional leaflets, acceptance of consultations and Q&A, use of LED screens at business outlets to scroll promotional slogans and prevention of telecommunications network fraud and other financial innovative products and knowledge, allowing the general public to experience the intelligence brought by financial technology. While optimizing and facilitating financial services, it also helps the public better understand the financial innovation around them, enhances awareness of financial security and risk prevention, and effectively enhances the influence of the Fintech Week.

In recent years, the digital transformation of commercial banks has achieved remarkable results. Empowered by digital technology and by deeply exploring the field of financial technology, the banking industry has further released the value of technology, promoted full-stack digital construction, and comprehensively improved process management efficiency, risk pricing capabilities, and refined operations. capabilities and service efficiency continue to improve, effectively supporting the high-quality digital transformation of the banking industry. Through this event, commercial banks will continue to increase the application of new technologies such as 5G, AI, big data, and blockchain, continuously improve their technological innovation capabilities, and strive to Create a new situation of high-quality development. (Editor: Fang Jie)

『Wu』Why do banks love blockchain so much

Many problems remain to be solved in banks’ competition for blockchain

As traditional financial institutions, banks are the most active pathfinders in the field of blockchain. In recent years, many domestic and foreign banks have applied blockchain technology to credit, clearing and other fields. The unique trust of blockchain Mechanism is regarded by banks as a key technological breakthrough for innovative risk management and simplified transaction processes. However, as an emerging technology, the blockchain ecosystem is still in the process of being established, its applications are very limited, and many problems still need to be gradually solved during development. < /p>

“The current blockchain cannot run high-frequency and concurrent transactions, and the network speed and computing power cannot support it. For example, in the field of payment, if it is online shopping, it can still be implemented; if it is high-frequency futures trading, it cannot be done. "Huang Zhen said.

Jiang Peng said that at the beginning of designing the blockchain system, CITIC Bank carefully demonstrated the business links suitable for using blockchain.

"From the global perspective Judging from our experience, it is currently not suitable to use blockchain to build large and complex systems. Don’t try to use blockchain to solve all problems, but focus on solving core problems. It takes time to build a system that is too complex. Technology develops so fast. Before the old system is completed, it will face iterations of new technologies. "Jiang Peng said.

The idea of ​​"only solving core problems" ensures that after the blockchain is launched, the relevant business operations of CITIC Bank branches can achieve business upgrades without process modification.

Fan Bin said frankly that it will take time for banks to fully apply blockchain. IBM's investment in the blockchain open source community will continue, on the one hand, to cultivate the market, and on the other hand, to compete for the commanding heights of the blockchain platform. .along withWith the rapid iteration of blockchain technology itself, there is still a lot of room for imagination in the scenarios in which financial institutions can use this new technology.

Content comes from Xinhuanet

"Lu" Rural Credit Cooperative Online Loan Research

In recent years, both new Internet financial institutions and traditional banks have Taking personal online credit loans as the driving force and combining the advantages of Internet technology, we can compete for the long-tail market.

Online credit loans rely on the advancement of big data, artificial intelligence, cloud computing, blockchain and other technologies, as well as the gradual improvement of the credit reporting system, and have the advantages of high efficiency, good experience, and standardization. Products include credit cards, personal consumption loans, cash installments, etc., which have developed rapidly in recent years.

Lingyi Finance found that there are more than 1,000 rural commercial banks (hereinafter referred to as "rural commercial banks"), although they are restricted by their business geography, they have made some attempts in personal online credit business. In the WeChat ecosystem, you can also see the loan products of rural commercial banks.

This article will take the personal credit business of rural commercial banks as the starting point and analyze it through questions such as "What is the current situation of rural commercial banks? What is the personal loan income of rural commercial enterprises? How do rural commercial banks carry out personal online credit business?" .

1. Current Situation of Rural Commercial Banks

Rural Commercial Bank Gaopi Chain (hereinafter referred to as "rural commercial bank") originated from rural credit cooperatives. At the end of 2000, the first batch of pilot rural commercial banks in the country were established in Jiangsu Province. Compared with other banks, rural commercial banks are subject to stricter cross-regional operating restrictions.

On January 14, 2019, the China Banking Regulatory Commission issued the "Opinions on Promoting Rural Commercial Banks to Adhere to Their Positioning, Strengthen Governance, and Improve Financial Service Capabilities" (hereinafter referred to as "CBIRC Document No. 5"), stating that "Rural Commercial Banks?? Strictly and prudently carry out comprehensive and cross-regional operations. In principle, their institutions do not go beyond counties (districts), and their business does not cross counties (districts)." However, on April 8 of the same year, Changshu Rural Commercial Bank (hereinafter referred to as "Changshu Bank" , 601128. SH) obtained the first investment management village bank license, and rural commercial banks have a new compliance model for cross-regional business development.

Rural commercial banks are generally established in two ways: "rural credit cooperatives-rural commercial banks" and "rural credit cooperatives-rural cooperative banks-rural commercial banks". As one of the first batch of pilot rural commercial banks, Jiangsu Province has the largest number of listed rural commercial banks so far, with a total of 6. According to statistics from Lingyi Think Tank, as of April 12, 2019, a total of 10 rural commercial banks have landed on the capital market, of which 7 have chosen to be listed on A-shares and 3 have chosen to be listed on Hong Kong stocks (see Table 1).

Table 1 List of listed rural commercial banks (as of April 12, 2019)

After intensive listings in 2016 and 2017, rural commercial banks fell silent in 2018. In the first quarter of 2019, Zijin Bank and Qingnong Bank were listed one after another. Qingnong Bank is the first non-Jiangsu rural commercial bank among the A-share listed rural commercial banks.

(1) In 2018, rural commercial banks were mainly located in Shandong, Hunan, and Henan.

Rural commercial banks can be divided intoIt is at the provincial, city and county levels. Generally, each province or municipality such as Beijing, Shanghai, Tianjin, Chongqing, etc. has a provincial rural commercial bank. According to Figure 1, as of the end of 2018, Shandong, Hunan, and Henan had the largest number of rural commercial banks, with 110, 101, and 95 respectively. There is only one rural commercial bank in Beijing and Shanghai for young farmers.

The distribution number of rural commercial banks is related to the local agricultural conditions and population:

1. In large agricultural provinces, there are generally more rural commercial banks. Wind data shows that as of the end of 2017, the total agricultural output value of Shandong, Hunan, and Henan was 440.32 billion yuan, 259.76 billion yuan, and 455.27 billion yuan respectively; Beijing and Shanghai were 12.98 billion yuan and 14.64 billion yuan respectively.

2. When the permanent population is large, rural commercial banks generally have a large number. According to calculations by Zero One Think Tank, the average number of rural commercial banks in provinces/municipalities/autonomous regions across the country (resident population/number of rural commercial banks), a rural commercial bank generally serves one million local people (Zero One Think Tank Note: The median number of rural commercial banks in 2017 The number is 974,800, that is, a rural commercial bank serves 974,800 l

With the introduction of regulatory policies, rural cooperative financial institutions serving the county economy have gradually been unified. According to the Qi Sun Suggestions of the China Banking Regulatory Commission in 2011, existing rural cooperative banks (hereinafter referred to as "rural cooperative banks") must all be restructured into rural commercial banks, and rural credit cooperatives are encouraged to restructure into rural commercial banks. Therefore, before new relevant policies are introduced, the banking model serving the county economy should be reformed into "rural credit cooperatives" "Social-rural commercial banks, rural cooperative banks, rural cooperatives-rural commercial banks".

During the restructuring process, the number of rural commercial banks, rural credit cooperatives and rural cooperative banks has changed. Data from the China Banking Regulatory Commission shows that as of 2018 As of December 31, there were 1,397 rural commercial banks, 30 rural cooperative banks, and 812 rural credit cooperatives in the country, accounting for 30.45%, 0.65%, and 17.70% of the total number of legal persons in the banking industry (4,588) respectively. The year-on-year increases and decreases were respectively 10.70% and -9.00%.

(3) Relevant policies of rural commercial banks: serve the local area and select the best across regions.

Due to the geographical dispersion of the original rural financial institutions, limited risk control capabilities, and homogeneous products and services Due to limitations such as globalization, the purpose of establishing rural commercial banks is to reform the existing management system of rural financial institutions. For cross-regional business, regulatory aspects may show differentiated management systems.

In the face of control, there are rural commercial For banks, the China Banking Regulatory Commission’s Document No. 5 pointed out that “rural commercial banks must strictly and prudently carry out comprehensive and cross-regional operations.” However, for high-quality rural commercial banks, the China Banking Regulatory Commission pays across regions. The China Banking Regulatory Commission issued the "About Doing a Good Job in Rural Financial Services in 2016" Notice" (hereinafter referred to as "CBRC Document No. 26") and "Notice on Carrying out the Pilot Work of Investment Management Rural Banks and "Multiple Counties and One Bank" Rural Banks" (hereinafter referred to as "CBRC Document No. 3") pointed out that "support High-quality rural commercial banks set up branches in other placesinstitutions, or commercial banks that meet certain conditions operate, manage, and acquire rural banks in other places through a newly established or existing rural bank.

Table 2 Incomplete statistics on policies related to rural commercial banks (as of April 12, 2019)

2. What is the personal loan income of rural commercial banks?

According to the 2018 annual report, rural commercial banks'

revenue and net profit have increased at different levels.

(1) 2018, Chongqing , Guangzhou Rural Commercial Bank has the largest revenue scale and net profit attributable to the parent company

The total operating income of listed rural commercial banks in 2018 was 76.468 billion yuan, a year-on-year increase of 20.38%. Among the banks with listed Rural Commercial Banks’ 2018 annual reports, the year-on-year increase in total operating income exceeded The 20% include Chongqing Rural Commercial Bank (29.93%), Jiangyin Bank (27.09%), Zhangjiagang Bank (24.24%) and Qingnong Bank (22.75%), which showed a significant increase compared with 2017. Among the listed banks Among rural commercial banks, Chongqing Rural Commercial Bank had the largest revenue and the fastest growth in 2018. Chongqing Rural Commercial Bank and Guangzhou Rural Commercial Bank had the largest revenue, 26.092 billion yuan and 15.377 billion yuan respectively, a year-on-year increase of 29.93%. 14.08%.

Figure 2 Operating income of listed rural commercial banks from 2016 to 2018 (unit: 100 million yuan)

As of the end of 2018, all listed rural commercial banks have made profits, except for Jiutai Rural Commercial Bank, whose net profit attributable to the parent company has dropped by 22.94% year-on-year. %, and the other rural commercial banks continued to grow to varying degrees. Among them, the growth rate of 10% was Changshu Bank (17.53%), Guangzhou Rural Commercial Bank (14.32%), Qingnong Commercial Bank (13.23%) and Zijin Bank (10.21%). Among them There are two rural commercial banks with net profits attributable to their parent companies exceeding 5 billion yuan, namely Chongqing Rural Commercial Bank and Guangzhou Rural Commercial Bank. Their net profits attributable to their parent companies are 9.058 billion yuan and 6.526 billion yuan respectively.

Figure 3 Listed Rural Commercial Banks Net profit attributable to parent companies from 2016 to 2018 (unit: 100 million yuan)

(2) The balance of personal loans of rural commercial banks increased year by year

As of the end of 2018, the total number of loans issued by listed rural commercial banks was 1.41 trillion yuan. From 2016 to 2018, The total loans of rural commercial banks have been growing, with a compound annual growth rate of 18.18%.

Figure 4 Total loans of listed rural commercial banks (unit: 100 million yuan)

The balance of personal loans continues to grow. As of the end of 2016-2018, the total number of loans of listed rural commercial banks The compound annual growth rate (CAGR) of personal loan balances both exceeded 10%, with Sunong Bank and Zhangjiagang Bank growing the fastest, with CAGRs of 59.75% and 45.13% respectively.

Figure 5 Personal loans of listed rural commercial banks from 2016 to 2018 Balance (as of April 12, 2019) Unit: 100 million yuan

Note: CAGR is the compound annual growth rate of personal loan balance

Personal loans are an important component of total loans, accounting for one-third. Listed. Among rural commercial banks, the top three share of personal loansThey are: Changshu Bank (51.02%), Chongqing Rural Commercial Bank (34.96%) and Qingnong Commercial Bank (27.56%).

Figure 6 Proportion of personal loans of listed rural commercial banks (as of April 12, 2019)

3. How do rural commercial banks carry out personal online credit business?

Rural commercial banks generally have sufficient deposits. How to lend money is a big problem for rural commercial banks. Convenient loan process is one of the methods that rural commercial banks are trying. Some rural commercial banks have launched personal online small loan services. After the user applies for a bank card at the local rural commercial bank outlet, the bank will review the application of the cardholder who needs a loan. The review can be done through bank branches or online. Among them, the materials that need to be provided generally include proof of identity, proof of work (salary, provident fund), proof of residence, etc.

(1) Necessary conditions for personal online borrowing: you need to hold a bank card from a corresponding rural commercial bank. To open a card, you need to go to a local bank outlet

In order to realize online credit and other services, there are usually three types of cross-regional outlets set up by rural commercial banks. Mode:

1. Establish cross-regional branches. Sunong Bank (formerly known as "Wujiang Rural Commercial Bank") was the first Chinese bank to establish an off-site branch. Sunong Bank established an off-site branch in Chibi City, Hubei Province in 2009. As of the end of 2018, Sunong Bank had opened branches in other provinces and cities such as Anhui and Hubei.

2. Establish cross-regional village and town banks. Larger rural commercial banks generally control multiple rural banks. For example, as of the end of 2018, Changshu Bank had 30 rural banks (Xingfu Group) located in Hubei, Jiangsu, Henan, Yunnan and other provinces.

3. Establish financial institutions such as wealth management subsidiaries and consumer finance companies. In January 2017, Sunong Bank applied to invest in the establishment of a consumer finance company in Hengqin New District, Zhuhai City, Guangdong Province, but it has not yet been approved.

In December 2018, Guangdong Shunde Rural Commercial Bank became the first rural commercial bank to publicly declare its investment in establishing a wealth management subsidiary, but it has not yet been approved.

Except for the third mode, which appeared relatively late and has no successful cases yet, borrowers from other places can use the first and second modes to apply for debit or credit cards at the branches of rural commercial banks.

(2) WeChat Bank: Mainly diverting loan business

Table 3 Online business status of listed rural commercial banks in 2017 Unit: 10,000 households

The official website of Foshan Rural Commercial Bank shows that the age required to apply for Yuenong e-loan is 22- Customers who are 55 years old and have provident fund, social security, payroll or mortgage loans in the bank. It can be seen that the online loan application materials of Rural Commercial Bank are the information accumulated by previous users, and are the result of connecting the information of the card application, five insurances and one fund, housing loan business departments and the loan department.

Table 4 Incomplete statistics of personal consumption loan products of Shanghai Rural Commercial Bank

Note: The blank spaces in the table refer to the materials required for the corresponding products and are not directly mentioned

(4) Online loan product review is strict and the scope of the loan audience is Limited

rural commercial banks are in the trial stage of Internet loan business. According to an online survey of 14 rural commercial banks by Lingyi Think Tank, the WeChat banking loan process of rural commercial banks is generally WeChat.After a user submits a loan application (filling in information: name, mobile phone number, ID number, loan purpose, location, etc.), the bank account manager will ask the user to submit materials to the corresponding outlet for review and then grant the loan. There are relatively few Internet loan products reviewed online. According to incomplete statistics from Lingyi Think Tank, there are 14 rural commercial banks in the table with Internet personal loan products, a total of 5 of them, namely Zijin Bank (Tax Micro Loan), Chongqing Rural Commercial Bank (Yukuaidai), Changshu Bank (Nongxiangdai) , Shanghai Rural Commercial Bank (Xin E Loan) and Shandong Rural Credit Cooperative (Xin E Loan).

Table 5 WeChat banking, mobile banking and official website loan business situation (incomplete statistics)

The personal online loan business of rural commercial banks is not yet perfect, mainly due to policy and technical difficulties. Considering that policies are uncontrollable factors, rural commercial banks are paying more and more attention to the improvement of systems and personnel technical capabilities. In addition to forming their own technical teams, rural commercial banks also try to cooperate with financial technology companies.

IV. Conclusion

Rural commercial banks appeared relatively late and are the product of the reform of the original rural financial institutions. With the promotion of policies, rural commercial banks may persist until the end in a unified manner. However, the CBRC Document No. 5 has continued to trouble the funds and business of rural commercial banks. However, the establishment of managed village banks shows that the earlier issued CBRC Document No. 3 is still effective. Qualified rural commercial banks cross-region Business is recognized and encouraged.

Geographic restrictions have an impact beyond just offline. Rural commercial banks with good qualifications can expand their business scope by opening branches and village banks in other places. While geographical restrictions are partially lifted, the types of personal online credit products of rural commercial banks have increased, and the model has changed from "purely offline" to "purely online".

Related Q&A:

『撒』 China Information’s 2020 Semi-annual Board of Directors Operation Review

The content of China Information (000555)’s 2020 Semi-annual Board of Directors Operation Review is as follows:

1. Overview

In the first half of the year, the company's management and all employees worked together to overcome the difficulties and successfully withstood the test of the epidemic. Through effective organization, the impact of the epidemic was minimized. Phased results have been achieved in coordinating epidemic prevention and control and resumption of work and production. While focusing on the health and safety of employees, we have actively ensured that customers' business needs are met, and the overall operating performance has increased against the trend. During this period, the company increased investment in R&D, with a total R&D investment of 278 million in the first half of the year, a year-on-year increase of 9.20%. It completed the R&D and upgrade of a number of products. While expanding the FinTech 1.0 business, it also laid a solid foundation for the development of the FinTech 2.0 business. Base.

(1) Revenue and net profit increased significantly year-on-year

During the reporting period, the company’s strategy focused on financial technology, and the overall performance grew steadily. The company withstood the impact of the epidemic in the first half of the year, achieving a year-on-year growth of 7.00% in contract signings and operating revenue of 4.374 billion yuan, a year-on-year growth of 5.91%. Among them, the software development and technical services business achieved revenue of 16.18 billion. The company achieved net profit attributable to the owners of the parent company of 157 million yuan, a year-on-year increase of 21.34%. The net profit after deducting non-recurring gains and losses attributable to shareholders of listed companies was 153 million, a significant year-on-year increase of 28.77%.

(2) The promotion of financial technology strategy has achieved remarkable results

In the first half of the year, the company’s financial technology business signings increased significantly by 35.92% year-on-year, providing sufficient impetus for subsequent business growth. The revenue was 1.752 billion yuan, a year-on-year increase of 1.44%, and the gross profit margin was 19.62%, a year-on-year increase of 0.64 percentage points. Among them, the software and services business was delayed due to the impact of the epidemic on project implementation and acceptance, achieving revenue of 766 million yuan and a gross profit margin of 26.62%.

1. Independent innovation supports the development of financial credit innovation

2020 is an important year for the transformation of the IT architecture of China's banking industry. Banks have launched credit innovation pilots, starting from partial to In the process of comprehensive migration to domestic basic software and hardware environment, financial information innovation has ushered in a golden period of development. According to the IDC report, the demand for bank information infrastructure construction will reach 65 billion yuan this year. As an important pillar of the national economy, the financial industry has the characteristics of high technical requirements, strong security and confidentiality, and high reliance on informatization. Banks usually carefully select relatively mature and reliable information technologies during the construction of information systems, but the development of information innovation requires application In the past, basic software and hardware such as servers, operating systems, and middleware have not been implemented in banks. This requires integrators to provide optimal overall solutions for banks based on the adaptation results of various basic software and hardware to help banks complete the project based on The importance of Xinchuang Environment's information system construction and information infrastructure construction capabilities is more prominent than in the past. On the basis of understanding the operation of financial software, forming a reasonable adaptation plan and quickly responding and solving business problems in the later stage are key capabilities that integrators need to possess in the Xinchuang business. The company is a manufacturer capable of complex integration of cutting-edge national projects. It is also one of the few manufacturers with financial software capabilities. It also has nationwide operation and maintenance capabilities for timely response. In the first half of the year, the company successfully won the banking industry's first major bank information infrastructure construction Xinchuang project. Through the complex integration of Xinchuang servers, operating systems, middleware and self-developed application software, the project successfully built an information infrastructure that can run smoothly in banks. The credit innovation environment has met customers' requirements for high performance and high security, achieved a major breakthrough in the financial credit innovation business, and also formed a financial credit innovation integrated solution recognized by the market. The company's advantages in the financial credit innovation field The status and influence have been further consolidated.

Driven by the dual factors of innovation and Internet transformation, the company's independently developed distributed core business systems, enterprise-level microservice platforms, payment business systems and other types of solutions continue to lead the market segments. During the reporting period, the company’s independently innovative products and solutions won bids and signed contracts to achieveCovering various types of banks including state-owned banks, joint-stock banks, city commercial banks, rural commercial banks, private banks, foreign banks, overseas banks, etc. Distributed platforms have become the preferred path for bank transaction system upgrades. The company's distributed application platform can provide a complete solution with distributed architecture, including all components required to build a financial-grade cloud-native architecture, which the company has forged in financial scenarios. Best Practices. The distributed core system is an important middle-end business processing system of the bank. The company is currently the only company that has both a mature distributed technology platform and a distributed core business system. It has the most implementation cases of distributed platforms and core business systems in the industry. It has launched the industry's first server based on Huawei Kunpeng chips and Taishan servers at Beibu Gulf Bank. The bank core system built by the bank provides reference for the bank's Xinchuang server selection. During the reporting period, we won the bid and signed contracts for core system business consulting and construction work for eight banks including Postal Savings Bank of China, Qujing Bank, Tangshan Bank, and Xiamen International Bank. The company's enterprise-level microservice platform can split a single system into multiple lightweight systems that are loosely coupled, have single functions, and collaborate with each other to help the sensitive development of banking business and create an empowering middle platform. During the reporting period, 7 banks won the bid and signed contracts, including Bank of Guangzhou, Bank of Guizhou, Bank of Tangshan, Bank of Ningbo, and Huaxing Bank. The payment business system has signed contracts with 5 banks including Bank of Tianjin, Bank of Sichuan, Liaoning Rural Credit Union and Qinhuangdao Bank. In terms of overseas expansion, the company is currently working with Huawei and other partners to expand overseas business, and related work is also progressing steadily.

2. Smart financial business seizes market opportunities

During the reporting period, the company's peers jointly promoted the application of 5iABCDs technology in the banking industry. The company's products and solutions such as data warehouse, data governance, data management and control modeling, regulatory reporting, customer profiling system, and big data application platform won the bid and signed contracts with Industrial Bank, Bank of Beijing, Bank of Guangzhou, Bank of Gansu, Qilu Bank, and Xiamen International Bank , Jinshang Bank and other banks. The company won the bid for smart banking solutions and signed contracts with banks such as Qujing Bank, Well Link Bank, Jinzhong Bank, and Bank of Chongqing. The company participated in the DCEP test and related promotion work of a major state-owned bank, involving the electronic payment scenario test of encrypted digital currency. As one of the important systems required for the later promotion of DCEP, the digital wallet has currently completed relevant technical reserves and can help businesses in the future. Banks accelerate the implementation and promotion of digital currencies. In terms of blockchain, the company successfully implemented a "blockchain-based supply chain finance corporate accounts receivable financing system" for a major state-owned bank. At the same time, the company has completed blockchain platform projects in Jilin, Tianjin and other places, including a labor union fund distribution platform, a tax and municipal supervision bureau reconciliation platform, and a social security and medical insurance payment reconciliation platform, etc. The hybrid cloud management platform version 5.0 released by the company can realize hybrid management of public clouds and private clouds, covering mainstream cloud resource types, and is compatible with Loongson, Kunpeng and x86 hybrid deployment and management. It is especially suitable for complex hybrid cloud management scenarios. National Agricultural Development BankFinancial cloud platform project.

3. Breakthrough in scenario finance business

The company continued to deepen its exploration in the field of scenario finance in the first half of 2020. On the one hand, the company helps banks introduce third-party scenarios and create open banks based on its existing banking IT solution capabilities; on the other hand, the company relies on its long-term accumulation in tax and agricultural scenarios and continuously updates and integrates cross-industry data and scenarios. Iterate new businesses such as "bank-tax interaction", "enterprise credit assessment model", "bank-nong direct connection", "single product big data loan assistance", etc., while helping to solve the financing problems of small, medium and micro enterprises and "agriculture, rural areas and farmers", we will actively Explore innovative business models.

Based on the concept of open banking and relying on the independently developed Internet open platform, the company helps financial institutions open up their financial service capabilities and technical capabilities, and realize the introduction of third-party scenarios, data introduction, marketing and customer acquisition, etc. Seamlessly embed financial services into diversified business ecological scenarios and build an open ecosystem for multi-party cooperation and win-win. In the first half of the year, it was implemented in five banks including Fujian Rural Credit Union, Bank of Beijing, and Xishang Bank.

In terms of tax scenarios, based on the Golden Three Management Decision, the company undertook 32 formal needs and 8 temporary needs related to the epidemic prevention and control of the State Administration of Taxation, supporting the goods and labor department, non-tax department, and income tax department. Tax and fee reduction work has been carried out in many business departments and bureaus of the General Administration, including the General Administration Department and the International Department, covering 24 types of taxes (fees), 298 reduction and exemption policies, and 712 types of reductions and exemptions. Undertaken the data link guarantee work of "Analysis of the Impact of Resumption of Work and Production", further consolidating the company's informatization position in the tax industry. The company continues to strengthen the construction of big data technology capabilities and promotes industry application development around big data capabilities. In the first half of the year, the company successfully won the bid for the big data project for the construction of the industrial economic monitoring and early warning module of Hainan Social Management Platform, and cooperated with customers to complete the second phase of the Beijing Taxation Bureau big data platform construction Program planning and design work. At the same time, the company is jointly developing a big data cloud platform solution for the tax industry with Huawei. Based on tax scenarios, the company's V1.0 bank-tax interactive platform has been implemented in 8 provinces, providing data services to more than 40 banks. Tax industry and economic analysis has been implemented in Shenzhen, Inner Mongolia and other places to achieve in-depth analysis of the operating dynamics of the industry from multiple dimensions of industry, industry, and enterprise; V2.0 bank tax data analysis and modeling has been developed with Shenzhen ICBC and Shanghai Bank (601229) After signing the contract, the full indicator database based on tax data has increased from 2,800 indicators at the end of last year to 3,200 indicators. The fusion model based on tax-related data is conducting joint modeling work with external manufacturers to jointly empower risk control for banks and other financial institutions.

In terms of agricultural scenarios, the company has signed multiple national, provincial and municipal big data projects such as the "Natural Rubber Whole Industry Chain Big Data Pilot Project" and the "Yantai Apple Big Data Center Project". The No. 1 Central Document in 2020 emphasized the need to further deepen the pilot reform of the rural homestead system. In the first half of the year, the publicThe company's rural homestead product line has been gradually improved, and the homestead database management system and homestead management utilization platform test version have been developed and launched, providing important basic guarantees for the pilot work in the field of rural homestead rights confirmation and management. Based on the agricultural scenario, the company's bank-nong direct business continues to strengthen business cooperation with major state-owned banks, city commercial banks, and rural commercial banks. A total of 69.42 million contracts were signed in the first half of the year, a threefold increase from last year's full-year contract signings. The business is centered on bank-nong direct-connected products and integrates rural capital management, rural comprehensive property rights transactions and other related financial service scenario modules to help financial services reach rural grassroots and improve the construction of agricultural and rural financial infrastructure.

4. Deepen government, industry, academia and research, and build a new industrial ecology

During the reporting period, in terms of ecological innovation, China Information continued to strengthen in-depth cooperation with ecological partners. The company signed a "Financial Technology Strategic Cooperation" agreement with Qinghai Rural Credit Union. The two parties will jointly explore the practical application of financial technology in banks, and carry out extensive cooperation in the intelligent transformation of branches, innovation in financial service models, and innovation in rural financial scenarios. The company joined the Financial Technology Committee of the China Payment and Clearing Association, signed the "Cooperation Agreement on Joint Construction of a Laboratory" with the Beijing Financial Technology Research Institute, and established the Beijing Financial Technology Research Institute Open Banking Laboratory to promote efficient innovation in financial technology and the rapid development of results. Convert application. Joined Jilin Province's "Innovation and Innovation Alliance", signed a contract to settle in the National Information and Innovation Park in Beijing Economic and Technological Development Zone, and joined hands with domestic excellent basic software and hardware ecological partners to jointly provide strong support and guarantee for the promotion of information and innovation across the country.

(3) The overall steady growth of industry digital business

In the first half of the year, mainly due to the impact of the epidemic on customer purchasing rhythm, the company's operator industry achieved revenue of 832 million yuan, with a gross profit margin of 832 million yuan. 15.39%. Among them, the software and services business achieved revenue of 426 million yuan, with a gross profit margin of 17.84%. This year, all parts of the country have stepped up efforts to build 5G. The three major operators have completed bidding for 5G equipment procurement in the first half of the year. Through a large amount of construction and optimization work, key cities across the country have achieved continuous 5G network coverage, to a certain extent. Commercial. As one of the largest third-party optimization and engineering maintenance service providers in China, the company actively participates in the national 5G construction. In terms of performance verification and network access verification after the opening of 5G base stations, it is responsible for nearly 20,000 sites responsible for performance verification and network access verification. In response to the large-scale 5G construction launched by operators this year, the company actively organized training to upgrade and transform employee skills. The company won the bid for ZTE's leading city 5G project, which is ZTE's first real 5G optimization project among domestic and even national communication equipment manufacturers. This project not only cultivated and reserved a large number of 5G skilled talents for the company, but also radiated across the country from Beijing. The company has developed a good reputation in the industry as a pioneer in 5G network optimization.

The corporate, government and enterprise industries benefit from the fluctuations in procurement demand from Internet companies, achieving revenue of 1.655 billion yuan, a year-on-year increase of 61.93%, and a gross profit margin of 11.46%. Among them, the software and services business achieved revenue of 331 million yuan, with a gross profit margin of 25.33%. The company has won the bid for a number of information innovation projects in the government office field, and has achieved comprehensive construction of supporting environments such as servers, terminals, and basic software. The winning bid for the Xi'an E-Government External Network Xinchuang Cloud Platform Project has made a breakthrough in the large-scale practical application of Xinchuang Cloud, laying the foundation for building a high-security industrial ecosystem in the field of Xinchuang. As of the disclosure of this report, the company has won bids and signed contracts for 36 Xinchuang projects. Undertaken the construction of the IoT sensing platform for Huawei's smart city project in Cuiheng New District, Zhongshan City. Relying on the self-developed IoT sensing platform, it has formed the design and delivery capabilities for IoT technology applications and smart park solutions. Won the bid for the "Wide Area Quantum National Wide Area Quantum Secure Communication Backbone Network Construction Project (Beijing-Wuhan, Wuhan-Guangzhou Section Backbone Network and IP Bearer Network) System Integration Service Procurement Project", and continues to be in the new round of backbone network construction leading position. The company's subsidiary Guoxin, together with Guoke Quantum and various ecological partners, will develop distributed quantum SaaS platform and other products. After the relevant products are launched, they will cooperate with quantum secure communication operators to provide standard SaaS services to industry users.

2. Risks faced by the company and countermeasures 1. Market competition risks With the growth of industry customer demands in recent years and new technologies such as distributed and cloud computing, big data, artificial intelligence, and blockchain and model, the scale of my country's software and information technology service market continues to expand, and market competition continues to intensify. The company still faces the risk of intensifying competition in the market for existing products and services, and competition may further intensify in certain market segments or projects. The company will adhere to the orientation of independent innovation. At the same time, based on the training of a group of comprehensive talents who understand both technology and the industry they serve, the company will keep up with the cutting-edge and continue to innovate to continuously create new value for customers. 2. Product technology risks Software development is highly complex. If there are quality problems in the software technology products developed by the company, it may have an adverse impact on the customer's business operations and may increase the company's costs. The company attaches great importance to the quality of technical product development, and uses ITIL and PMBOK knowledge systems based on GB/T19001-2000idtISO9001:2000 and CMMI and other standards, combined with its own rich technology development experience, to form a service support system and penetration that matches the customer's business perspective. Deliver the entire process of technical management system and quality control standards to optimize product quality. 3. Human resources risks: The company's technological research and development and innovation are highly dependent on core technical personnel and key management personnel. In the face of increasingly fierce competition for information technology talents, there is still the possibility of rising human resource costs or the loss of key talents, which may have a certain impact on the company's business development. Therefore, the company is facing increasing pressure on labor costs and increasing the loyalty and loyalty of core technical personnel.Risks of increased difficulty in belonging, effectively retaining and attracting talent. Over the years, the company has strived to attract, train and retain talents by providing competitive salaries and benefits, establishing a fair promotion mechanism, and creating an open and collaborative working environment and corporate culture. At the same time, the company uses equity incentive plans to stabilize the core team and effectively retain and attract talents.

3. Analysis of core competitiveness 1. Continuous innovation and R&D investment to consolidate industry status The company has entered the field of financial informatization in 1987, took the lead in promoting SOA architecture in the banking industry in 2007, and was the first in the industry in 2016 "A new generation of distributed banking core system", launched the "blockchain basic technology platform" in 2018, released a new generation of platform-level products "enterprise-level microservices platform" in 2019, and released "online and offline integrated full-process credit" in 2020 System", China Information has always been able to have a keen insight into industry trends. Through continuous investment in independent research and development, it has launched many excellent and market-friendly architecture-level and platform-level products, driving the intelligent iteration of financial institutions' software and service products, and promoting the security of information infrastructure. Construction and upgrades. Up to now, the company’s software copyrights and patents have accumulated to 1,132 items. The company focuses on and continuously strengthens the introduction and training of professional and technical talents, and has built a relatively complete R&D and product system. Establish an engineering institute focused on the research and development of general products and technology platforms, and a software product center that researches and develops various applications in the financial industry. While taking into account the particularity of financial industry applications, it ensures the advancement and versatility of products. The company has established multiple R&D centers in Xi'an, Beijing, Guangzhou and other places. Among them, the Xi'an R&D Center is one of the earliest and largest software development bases in the domestic financial industry. It has established financial research institutes for forward-looking research on various new technologies and businesses. An integrated research and transformation system of industry, academia and research has been formed. 2. Rich customer resources and extensive ecological cooperation assist business development. The company has established a good reputation in the industry with more than 30 years of experience in leading the reform and innovation of the information service industry, as well as continuous technological innovation research and development and solid business development capabilities. Brand. Customers cover many key industries such as finance, operators, government agencies, agriculture, and taxation. In the financial field, the company has served more than 800 customers, including the central bank and 3 policy banks, 6 state-owned commercial banks, 11 joint-stock commercial banks, 15 private banks and direct banks, 19 foreign banks, and more than 90 City commercial banks, more than 230 rural commercial banks and rural credit cooperatives, more than 300 village and town banks, and cover various financial institutions such as stock exchanges, insurance companies, finance companies, and securities companies. In other fields, the company covers government customers such as the State Administration of Taxation and local taxation bureaus, the Ministry of Agriculture and Rural Affairs, agricultural authorities, and financial departments, and has established long-term, Stable cooperative relationship. The company also cooperates with the National Finance and Development Laboratory and the China Academy of Information and Communications Technology’s cloud computing and big data researchInstitute, Pengcheng Laboratory, Beihang University, Tsinghua University and a series of institutions and national laboratories have in-depth cooperation to create a forward-looking research ecosystem. The company's deep cooperative relationships with customers and partners in various fields have become a strong support for the company's strategic focus on financial technology and its efforts in financial innovation and scenario innovation. 3. Rich scene resources promote financial service innovation. The company seizes the industry wave of API economy and shared ecology, as well as the strategic opportunities of bank tax policies and digital countryside, and leverages the accumulation of scene resources and technological advantages to enhance the ability of financial services to the real economy. Based on 60+ open banking construction cases, the company has accumulated 600+ financial scenarios. While covering C-side scenarios, it also focuses on opening up rich B-side scenarios such as agriculture-related, tax-related small and medium-sized enterprises, etc. to help banks build ecological finance through scenario-based connections. system. In the field of taxation, the interaction between tax and bank is realized through "financial scenario innovation of tax business". Direct data connection is realized through the establishment of dedicated lines and system platforms, etc., and the bank and tax information is moved from "offline" to "online", breaking the The information barrier between the tax department and banks creates personalized credit product solutions for small, medium and micro enterprises; in the agricultural field, we use "technology + agriculture + finance" to empower the three parties and jointly promote a new model of capital going to the countryside to help rural areas become smarter. Management and digital agriculture development, implementing the "Apple + Futures + Insurance + Bank" innovative model. 4. Participate in the formulation of standards at different levels in the industry and lead the industry. Based on many years of information construction experience, the company leads the industry development trend through technology research and development and customer accumulation, and has accumulated deep understanding and research and development capabilities in finance, taxation, agriculture and other industries. capabilities and lead industry development by participating in the development of standards in various categories. In the financial field, the "blockchain-based supply chain finance enterprise accounts receivable financing system" implemented for a bank was successfully selected into the ISO/TC307WG6 "Blockchain and Distributed Ledger Technology Standard (Draft for Solicitation of Comments)". Provide reference for the formulation of international standards for the application of blockchain and distributed ledger technology. In the field of government and enterprises, as a member of the Ministry of Agriculture and Rural Affairs’ standards expert group, he participated in the preparation and review of the agricultural informatization standard system, and participated in the revision of the Ministry of Agriculture and Rural Affairs’ agricultural industry standard "Technical Specification for Digital Orchard Construction Apple". At the same time, the company is the leader of the WG8 international standard working group and the WG4 operation and maintenance standard working group of the ITSS subcommittee, providing a scientific and complete method system and guidance basis for the industry IT operation and maintenance market. The company is also the leader unit of the Big Data Standards Group Service Big Data Special Group of the National Beacon Committee.

『8』 Can blockchain change 10 cases of existing business

This article introduces the current 10 main usage scenarios of blockchain:

(1) Tracking Products in the global supply chain;

is a typical usage scenario of blockchain technology in security traceability. It can promote information tracking, query, verification and anti-counterfeiting of commodity circulation, and can significantly improve the efficiency of some links. However, the role of the blockchain can only be reflected in the chain, but it cannot cover the parts operated by people below the chain.

(2)Guarantee 33D printing quality and tracking;

(3) Create personalized and lifelong “one-stop” medical records;

Blockchain healthcare can track anyone’s complete medical history, such as medications, illnesses, injuries, and interactions across transactions with health systems, doctors, pharmacies, and health plans, and empowering patients to control their own data. Blockchain can also transfer insurance payments: smart contracts can automatically trigger insurance provisions when a clinic confirms a patient has received treatment, and prevent fraudulent or inaccurate claims. Some startups, such as the UK's Medicalchain, blockchain company Gem, MIT and other companies and universities are experimenting with this use.

(4) Simplify trade logistics;

Traditional trade involves complex import and export procedures, and all participants in the entire chain require a large number of paper documents to interact, resulting in high communication costs. Blockchain can optimize this system. Maersk and IBM have created a platform that integrates services such as liner, warehouse, freight forwarding, ports, customs, exporters, importers and trade finance banks into the trade ecosystem, on a data exchange platform running on the blockchain interoperate.

(5) Facilitate and secure customs trade;

Blockchain has been tested in many customs departments, including the United Kingdom, South Korea, Singapore, Costa Rica, Mexico, Peru and the 15-nation East African Group. In 2017, U.S. Customs developed 14 use cases for blockchain, which are currently being tested and evaluated. Blockchain will be particularly useful for the UK: when the UK leaves the EU customs union, its number of customs declarations will increase from 55 million to over 250 million (non-EU trade plus EU trade, which previously did not require customs documents), which is currently the case with UK software The program cannot fully handle it. Blockchain can help: It can trace the origins of products and help determine the origin and appropriate tariffs for goods, such as those destined to join the European Union’s tariff package. For the UK’s 28 border agencies, imported products such as food, safety and intellectual property compliance need to be analyzed, and blockchain projects can be shared securely and transparently in real time.

(6) Prevent voting fraud and protect voter identities;

Blockchain security and identity protection features can reduce fraud and encourage voters to believe their votes are anonymous,

increase turnout and make elections more immediate . Using the technology, voters can scan their thumbs with their smartphones and cast their ballots during their Election Day commute. If everyone votes via the blockchain, no one can vote twice. Voting records are inviolable, and the ID of each ballot is recorded instantly at every polling location.

(7) Launch crop insurance for farmers;

Crop insurance customized to specific farmer needs is often very expensive, and blockchain technology can reduce costs by determining trigger conditions and automating execution. For example, farmers can insure against extreme weather. If extreme weather affects a harvest, a blockchain-based insurance contract would immediately recognize this and pay the farmer’s claim.

Building a network of energy producers and users;

Decades ago, some companies introduced smart grids to generate energyProvide intermediary services to producers and demanders. Now, blockchain can optimize smart grids and provide energy producers and consumers with a regional intermediary energy trading platform. TenneT and Brooklyn-based startup LO3 Energy are both trying this business.

(9) Create smart cities that can operate independently;

Blockchain can now amplify the impact of Douyou IoT on city operations. For example, Dubai has a pilot project to implement blockchain in city services. Dubai plans to use blockchain for more than 100 million annual government documents by 2020, including all visa applications, bill payments and license renewals.

(10) Automatic payment to the exporter when the goods arrive at the foreign buyer;

Blockchain changes the information asymmetry in existing international trade by allowing both parties to the transaction to access the same data and real-time digital files question. There is no need to store multiple copies of the same document across different databases for different entities. When goods arrive marked by sensors connected to the smart contract, a transfer of money from the buyer to the seller is automatically triggered.

2. Ten major problems currently faced by the blockchain industry and their analysis

2.1. Is the data on the blockchain really immutable?

Can one of the core features of blockchain, "anti-tampering", really be realized? And is "tamper-proof" really beneficial?

The report pointed out that the blockchain is not completely immutable, and gave three weaknesses of the blockchain:

(2) It may be hacked, and 51% of the chain is controlled by people who want to tamper with the results.

(3) The "garbage of garbage" problem has existed for centuries. The value of a blockchain depends on the data on the chain, and data entered into the blockchain may be inaccurate or fraudulent. One solution is to use sensors instead of manually entering data.

The so-called "51% attack" is to take advantage of computing power to cancel payment transactions that have already occurred. If someone has more than 50% of the computing power, he can find the random numbers needed to mine the block faster than others, so he actually has the absolute and effective right to decide which block. From a technical level, a 51% attack is achievable, but the cost is very high for the earliest cryptocurrencies such as BTC. They have built a huge network, which is why BTC’s network has remained stable for 10 years. reason. But with other counterfeit currencies, the risk is greater.

In addition, there is no direct benefit for the attacker to simply launch a 51% attack, and it must be linked to specific short selling and false recharge. Specifically, it is often a double spend on a certain transaction. The attacker stops attacking once. Continuous attacks are costly and will stop once successful; second, the community can issue an emergency pudding and add checkpoints to the blockchain. The community urgently agreed that the attacker’s blockchain was invalid. Therefore, there are many ways to deal with the 51% attack, and it will not be the end of the world for a blockchain.

2.2. Who owns and maintains the blockchain? And who asked about the appearance?

Responsible for problems and losses?

Since the blockchain is a decentralized user community,Who will maintain it? Shouldn’t it require human adjustment and maintenance just like a website?

For permissioned chains, such as alliance chains and private chains, there is no need for incentives such as tokens to motivate people to manage, there is a manager who manages the entire network. Since there are fewer users in the network, coordination costs are relatively low. However, such networks are susceptible to security challenges, and as the number of network users increases, coordination costs will increase.

For consortium chains and private chains, since they are still very centralized organizations, the verification nodes are identified by the organization itself, so the management model is not very different from traditional centralized institutions. However, for public chains, there is no leader who coordinates the entire network system, and only relies on token incentives to coordinate different interest groups, which undoubtedly increases the instability of the entire ecosystem. At present, the development of the blockchain industry is in a very early stage. In addition to the relatively mature decentralized governance of BTC, in the governance of public chains such as ETH and EOS, the founder development team plays a very core role and is the "rules" of the public chain. "Maker", although the entire ecosystem has achieved partial decentralization, the founders still play a pivotal role in the direction of strategic development. Therefore, the author believes that the decentralization of blockchain can only be an ultimate goal that is constantly approaching. From the birth of the project to its maturity, its degree of decentralization should continue to increase, as shown in the figure below. In the early stages of project development, the founder and his development team play an absolute guiding role in the entire ecosystem. As the project ecosystem matures and the number of participants continues to increase, the original development team should gradually weaken its guiding role. The entire network maintenance needs to be decided jointly by all developers and users in the ecosystem. As for the final network problems, they can only be borne by all participants.

Figure: Schematic diagram of the relationship between the degree of centralization and development stages of blockchain projects

2.3. Are smart contracts really smart?

The second reason why smart contracts are not yet that smart is that their entries can be manipulated by evil actors, such as contracting parties or miners who add transaction records to the blockchain's ledger of past transactions. One study showed that 3.4% of ETH smart contracts are vulnerable to hackers.

Smart contracts can indeed optimize many intermediate programs, but judging from current industry practice, they are far from being called smart. A qualified smart contract should include all possible scenarios. Because the core essence of smart contracts is "to make the most just ruling even in the darkest environment."

The difference between Ethereum and Bitcoin is that Ethereum is Turing complete, and more types of contracts with more complex terms can be implemented through this platform. Of course, the cost of this is that the complex contract content makes it becomes more difficult to analyze. Typically, complexity is directly proportional to the probability of a vulnerability; the higher the complexity, the greater the probability of a vulnerability.

As for the concept "code is law" proposed by Ethereum, however, the code has attracted hacker attacks due to its own vulnerabilities, so it is not enough to form the authority of "law". Therefore, it needs the trust and endorsement of the government, lawyers, courts and other intermediary institutions. coordinationIn comparison, the current contract seems too rough.

2.4. Is there identity theft on the blockchain?

3% of social media accounts are fake, so can fake accounts be created on the blockchain? Can identities on the blockchain be stolen?

Blockchain can create a personal database for users whose data cannot be tampered with, but how to meet the user's "tampering" needs? This may be a paradox in the development of blockchain technology. Regarding user needs, we may need to start from the perspective of on-chain standards and authority management.

2.5. Can blockchains be connected to each other?

One blockchain records the data of an entity or user in one way, while another blockchain records the same data of the same entity or user in another way. In a fragmented system, multiple account books are not connected to each other, which will form a world of "operational islands", or "data islands". Users need to register for multiple systems at the same time to conduct transactions with different people for different purposes.

In view of the value transfer needs of different chains, cross-chain technology is the key, which can effectively connect different alliance chains or private chains, and promote the outward expansion and connection of blockchains. The current mainstream cross-chain technologies include Notary schemes, Sidechains/relays, Hash-locking, Distributed private key control, etc.

2.6． How does the blockchain connect to off-chain databases?

If one party's data and documents are off-chain, and the other party's data and documents are on-chain, can the two parties interact? In the company's database, can half of the company's data on the blockchain interact with the other half of the data?

These challenges are well known and are being addressed. For example, the same queries and analysis can be run in on-chain and off-chain databases. The risk is that data brought from on-chain to off-chain is no longer immutable, and researchers recognize that data security and aggregating, transforming and optimizing on-chain and off-chain data sets are significant challenges.

2.7． Can blockchain facilitate money laundering?

Money laundering is a huge global problem, amounting to 1-2 trillion US dollars, accounting for approximately 2% - 5% of the total global GDP. Banks and authorities are fighting back, spending about $8 billion a year to combat corruption. Banks around the world require KYC verification.

Due to the anonymous nature of the blockchain, especially the emergence of anonymous coins, BTC has been criticized by many people as a tool for money laundering. However, the anonymity of BTC is only anonymity on the chain. The interaction between people and the chain, and the interaction between BTC and legal currency will leave traces, and it is not as "lawless" as many media have promoted. Each BTC transaction requires the transfer of a corresponding address, and the transaction records of the address can be queried. In addition, the exchange of BTC and legal currency is conducted off-chain and cannot escape supervision. If any party in the transaction actuallyIf the identity is exposed, it will be difficult for all parties involved in the transaction to escape recourse.

2.8. Will the blockchain consume all the energy in the world?

BTC has an amazing energy demand. Operating Bitcoin for one year requires the energy consumption of Ireland for one year. Because BTC’s POW consensus mechanism requires miners to mine for transaction verification. There are concerns that as the network increases and the value of BTC rises, energy demand will grow rapidly. In fact, miners themselves have incentives to prevent this from happening, and the scalability of the blockchain is limited by availability, energy costs, and the miners' own financial resources. The current alternative is the POS consensus mechanism. The POS mechanism selects validators based on the number of currency holders.

In fact, it can be seen that except for the early batch of cryptocurrencies headed by BTC, the vast majority of current blockchain projects have taken into account the disadvantages of POW and are constantly innovating consensus mechanisms to avoid excessive consumption of energy. Therefore, blockchain is not enough to cause such a huge consumption of energy.

2.9. Will blockchain take our jobs?

Regarding blockchain, if people can trade directly with each other, what impact will blockchain have on intermediaries such as banks and lawyers? Blockchain is unlikely to be a job killer; it will, like any technology, change the nature of work by changing companies’ business and revenue models.

When artificial intelligence becomes popular, people will continue to ask questions like this. On the one hand, we enjoy the convenience that technology brings to us, but on the other hand, we are worried that technology will replace us. The biggest challenge of blockchain is not the technology itself, but changing the traditional profit distribution model. Blockchain technology can remove certain intermediary links, break the monopoly of many resources by centralized institutions, and thus change the interest pattern. This is also the most revolutionary point of blockchain.

2.10. Is the United States lagging behind in the development of the blockchain industry?

Globally, the blockchain industry in the United States is still in its infancy. Deloitte surveyed 1,053 executives in financial services, healthcare, technology industries, telecommunications, manufacturing and other industries in 2018. According to the survey, only 14% of American respondents believe that blockchain is used in their production, compared with 49% in China, 48% in Mexico, 40% in the United Kingdom, and 36% in Canada. Plans are also lagging: 41% of U.S. companies plan to invest $1 million or more in blockchain, compared with 85% in China, 74% in Canada, 72% in the United Kingdom, and 65% in Mexico.

According to the "Blockchain China-U.S. Development White Paper" released by Silicon Valley Insight, North America is comparable to Asia in terms of the number of ICOs. In terms of financing amount, North America is far ahead with 7.85 billion. Therefore, the United States, as a major country in North America, is not lagging behind at all. On the contrary, it is still leading in many aspects.

《Harnessing Blockchain for American Business and Prosperity》

http://forex.hexun.com/2018-06-17/193222543.html

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Introduction to Tianjige: Tianjige (LD Research) was established on July 2, 2018. It is a company dedicated to exploring the unknown of science and technology, taking human development as the driving force, and taking "BASE Research for Solving Real" Problems" as the purpose of the research institute.

This article comes from Babbitt

Related questions and answers: What are the uses of blockchain technology in the business field?

What are the uses of blockchain technology in the business field?

In recent years, due to the virtual digital With currency speculation booming, blockchain, as its underlying technology, has also begun to receive widespread attention. Blockchain has the characteristics of decentralization, trustlessness, collective maintenance, and reliable storage. It is currently widely used in the field of virtual currency.

Since the birth of Bitcoin, more than 1,600 virtual currencies have appeared in the world, and a huge industrial chain ecosystem has been formed around the generation, storage, and trading of virtual currencies. But overall, the industry is still in its infancy and is still far away from the real value use area. The core of the blockchain economy lies in the reconstruction of business logic and organizational forms, so it is necessary to obtain practical examples in multiple industries to demonstrate its value. This article will explore the business models used by blockchain in various industries from the perspective of combining blockchain with industry needs.

First of all, the core of blockchain is to solve the problem of credit:

Credit is the foundation of all commercial activities and finance. The United States has implemented trusted identification since 2011, while China has implemented a real-name system to achieve supervised information dissemination. The significance of blockchain is that it has established decentralized trust from a technical level for the first time and realized a completely distributed credit system.

Secondly, blockchain solves the problem of value exchange:

Traditional networks can achieve point-to-point transmission of information, but cannot achieve point-to-point transmission of value. Because information is allowed to be copied, and value must be authentic and unique, it is necessary to rely on a centralized organization to achieve value transfer. Blockchain perfectly solves this problem and provides a method to realize point-to-point transfer of value. During the value transfer process, accounting is realized by the network without relying on a centralized institution. Therefore, blockchain is expected to become the infrastructure for building new finance and the cornerstone of the future value Internet.

The use of blockchain

There are currently two main modes of blockchain use:

1) Native blockchain use: directly based on decentralized blockchain technology to realize value Transmission and transaction use, such as digital currency;

2) "Blockchain +" model: combine traditional scenarios with the underlying protocol of the blockchain to improve efficiency and reduce costs. It is expected that the use of blockchain in various industries will be dominated by the second model.

Blockchain has five coresThe core attributes are: transaction attributes (value attributes), certificate attributes, trust attributes, intelligence attributes, and traceability attributes. The above core attributes are combined with the needs of the industry to solve the industry's pain points and become the business model used by blockchain in various industries.

Blockchain + Bank

1. Cross-border payment

Cross-border payment is a pain point that has long plagued the banking industry. Traditional cross-border payment methods include two major categories: one is online payment, including electronic account payment and international credit card payment, which is suitable for retail small amounts; the other is the bank remittance model, which is suitable for large-amount transactions; both have payment cycles Long, high fees, low transaction transparency and other issues. Especially with the rise of cross-border e-commerce in recent years, convenient, fast, safe and low-cost cross-border payment has become an urgent need for the industry.

The role of blockchain:

The characteristics of blockchain are deintermediation and open and transparent transactions. There is no third-party payment institution to join, which shortens the payment cycle, reduces fees, and increases transaction transparency. For example, in December 2017, China Merchants Bank teamed up with Wing Lung Bank and Wing Lung Shenzhen Branch to successfully implement cross-border RMB remittances between the three parties using blockchain technology. Its clearing process is safe, efficient and fast, greatly improving customer experience.

2. Supply chain finance

The pain points in this field are the long financing cycle and high costs. Centered on the core enterprise system of the supply chain, it is difficult for third-party credit enhancement institutions to authenticate the authenticity of various relevant vouchers in the supply chain, resulting in long manual review times and high financing costs.

The role of blockchain:

Blockchain introduces consensus mechanism, existence proof, non-tampering, traceability and other characteristics into supply chain finance, and does not require third-party credit enhancement agencies to authenticate various relevant credentials in the supply chain. authenticity, thereby reducing financing costs and shortening the financing cycle. For example, in April 2017, the listed company Yijian and IBM China Research jointly launched the blockchain supply chain financial service system "Yijian Block". The system focuses on pharmaceutical scenarios and currently has more than 30 pharmaceutical distribution companies. Successfully registered in the "Yijian Block", as of the end of July, the number of transactions had been close to 8,000, and the total investment amount exceeded 100 million yuan.

3. Digital Bills

The pain point of the digital bill industry lies in the long-term problems of "false bills" and "one vote selling many", which have brought risks to the bill financing business of the banking industry.

The role of blockchain:

The existence proof and non-tampering characteristics of blockchain effectively solve the problem of false digital bills; at the same time, blockchain solves the double-spend problem and avoids "one vote". Sell ​​more". For example, Shenzhen Blockchain Financial Services Co., Ltd. issues bill chain products to provide bill financing services based on blockchain to solve the bill financing needs of small, medium and micro enterprises. Cooperative banks include Ganzhou Bank, Guiyang Bank, Suzhou Bank, Shizuishan Bank, Langfang Bank, Wuhai Bank, Jilin Jiutai Rural Commercial Bank, Yaodu Rural Commercial Bank, Shenzhen Rural Industry Bank, Weifang Bank, Zhongyuan Bank, etc. In addition, Zheshang Bank, JD Finance, Hang Seng Electronics, HNA, etc. are also verifying blockchain digital bill services.

Blockchain + Securities

1. Asset Securitization

Asset securitization uses future income as a guarantee to obtain current financing. The pain points in this field are: there are many participating entities, many operating links, low transaction transparency, information asymmetry, and the authenticity of the underlying assets cannot be guaranteed.

The role of blockchain:

Blockchain introduces attributes such as existence proof, non-tamperability, and consensus mechanism for asset securitization. It can monitor the true situation of assets in real time and solve the problem of the underlying issues of institutions in the transaction chain. Asset trust issues. Various assets such as equity, bonds, bills, income certificates, warehouse receipts, etc. can be integrated into the blockchain and become digital assets on the chain, improving asset circulation efficiency and reducing costs. For example, in May 2017, Internet Finance and partners including Baiqian Leasing and Huaneng Trust jointly issued an asset securitization ABS project supported by blockchain technology, with an issuance scale of 424 million yuan.

Blockchain + Insurance

1. Insurance Business

The insurance industry has problems such as information asymmetry and lack of trust between customers and insurance institutions: it is difficult for users to choose insurance products that suit them, while insurance institutions Face the risk of insurance fraud.

The role of blockchain:

The decentralized, open, transparent, and traceable characteristics of blockchain establish a good communication channel between insurance institutions and users; insurance subject information is managed uniformly on the blockchain , cannot be tampered with, helping insurance institutions avoid the risk of insurance fraud; at the same time, smart contracts can improve work efficiency and reduce costs. For example, French insurance giant AXA is using the Ethereum public blockchain to provide automated flight delay compensation for air travelers. If the flight is delayed for more than 2 hours, the "smart contract" insurance product will automatically pay claims to passengers.

2. Credit information management

The pain point in this field is that credit information agencies have limited data collection channels and a lack of data sharing, which makes it difficult to accurately characterize the credit status of individuals or institutions; in addition, there are also problems in how to guarantee the data collection process. User privacy issues.

The role of blockchain:

Blockchain has the characteristics of trustlessness, consensus, and non-tampering. At the technical level, it ensures that limited and controllable credit data sharing can be achieved on the basis of effectively protecting user privacy. And verification. For example, Ping An's blockchain credit reporting business is now online. In addition, domestic startups such as Shanghai Juzhen, LinkEye, Bubi Blockchain, etc. are also exploring joint credit reporting and safe certificate storage.

As a basic technology, blockchain has great use value in many industries with distributed processing, peer-to-peer transactions, and rapid establishment of trust relationships. Its core is to solve the problem of credit and realize Point-to-point delivery of value. Therefore, it is considered to be the cornerstone of the future value Internet.

The core of the blockchain business model is to use the innovative attributes introduced by the blockchain and combine it with traditional industry uses to realize the reconstruction of business logic in order to create new usage scenarios, or improve efficiency and reduce costs.

It is expected that the use of blockchain will first start with requirements for credit, efficiency, and security.Very high penetration into the pan-financial field: The financial industry pays more attention to efficiency and security, and blockchain has a high degree of matching with its pain points, and can systematically solve trust issues, efficiency issues, default risks, etc. that exist in all aspects of financial services; District Blockchain’s attributes such as “transaction, certificate storage, and traceability” are more likely to generate value in the financial industry. At the same time, the market space in the financial industry is huge, and small progress can bring huge benefits.

Blockchain will also extend to all areas of social life: Blockchain solves problems such as the management, transaction, and transfer of digital assets, and therefore will play an important role in the wave of asset digitization, such as supply chain management, data Applications such as services, asset management, public services, and the Internet of Things are gradually being implemented in various fields, and "blockchain+" is becoming a reality.