Best Transaction Bank for Supply Chain Finance 2020
Industrial Bank has chosen to focus its supply-chain finance business on several key industries: auto, consumer products, green, medicine and public infrastructure. Driven by vice-president Chen Xinjian, the bank has managed to expand its supply-chain finance business much more rapidly than its rivals. By 2019, the bank’s outstanding supply-chain finance volume reached Rmb249.5 billion ($35 billion), a jump of 115% from the previous year. The bank signed up 121 leading companies in 2019, bringing the total to 403 so far. These companies have in turn brought in 4,845 small and medium-sized enterprises as part of their supply chains. That number also represents a 64% increase from the previous year. Financing through the bank’s bills pool reached Rmb143.4 billion, nearly tripling the amount from the end of last year.
Industrial Bank offers a range of supply-chain finance products, including commercial bill discounting, factoring, account receivables financing and domestic letters of credit.
Last year, the bank made enhancements to its online supply-chain finance platform, using technologies such as blockchain and robotic process automation to enhance the funding experience.
It has also paired up with government and third-party information sources and conducted big-data analysis to enhance clients’ risk profiles.
The bank broke new ground last year with its green supply-chain finance business, publishing the first-ever green supply-chain finance guidance onshore last October. The guidelines define the concept of green supply-chain finance and outline the strategy to develop the industry.
For the year to come, the bank is committed to using its supply-chain finance products creatively to help enterprises in poverty-ridden areas.