Postal Savings Bank of China
PSBC continues to lead domestic banks in providing and promoting inclusive finance across China by running the most extensive network in rural areas among domestic banks.
No other Chinese bank has allocated so much in terms of human and capital resources for inclusive finance as PSBC. The bank has set up a team of about 30,000 employees, or one sixth of its workforce, to serve small and micro enterprises.
By the end of September 2018, the balance of its loans to farmers and agricultural projects had reached Rmb1.2 billion ($179 million). Of that amount, 46% was lent to small and micro enterprises. These numbers were by far the largest in China’s banking sector.
Among domestic banks, PSBC has developed a range of inclusive finance products that are distributed through its 40,000-plus bricks-and-mortar outlets as well as the internet, smart phones and instant messenger WeChat.
According to PSBC chairman Li Guohua, inclusive finance is traditionally a high-risk and high-cost business, but using financial technology such as big data analysis, cloud computing and artificial intelligence can help a bank to control risks and reduce costs.
By applying fintech and partnering with external parties such as insurance companies and loan guarantors, PSBC has kept its non-performing loan and loan default ratios well below the industry average.
The bank has also teamed up with government agencies and industry associations to organize training programmes to help farmers and micro businesses upgrade technology and improve management skills.