The report disclosed that this online merchant bank, which was founded by Ant Group 7 years ago and specializes in serving small businesses and shop owners, has served more than 49 million small and micro customers in total. In the next three years, the goal is 70 million.

Author | Cat Brother

Source | Big Cat Finance

html June 27 is the Small, Medium and Micro Enterprises Day established by the United Nations General Assembly . On this day, a bank targeting small and micro enterprises released its first ESG report. The report disclosed that this online merchant bank, which was founded by Ant Group 7 years ago and specializes in serving small businesses and shop owners, has served more than 49 million small and micro customers in total. In the next three years, the goal is 70 million.

In the banking industry, MYBank is considered a talent. Its net profit last year was 2.09 billion, ranking second from the bottom among banks with total assets of more than 30 million, but it is the bank that serves the most small and micro businesses in the world. .

Every aunt in the village knows that "lending profits are high". Why can't MYbank achieve high profits?

It can be said that this is the inevitable result of MYbank's "only doing small things, not big things" and insisting on always supporting small and micro enterprises.

Since ancient times, small businessmen can only rely on connections, look at their faces, and provide mortgages to borrow money; or they can rely on private loans with confusing interest rates and intricate mafia forces. From the vendor who rides a tricycle to wholesale vegetables at the edge of the countryside at 3 a.m. to the breakfast shop owner kneading dough at 5 a.m., she wants to borrow money to buy an electric car, and he wants to finance and rent the vacant store next to him, and they also need Financial Services.

However, in the financial market, small and micro operators are a group that is easily ignored. They may be small business owners, small shopkeepers or even just farmers with business needs. Sometimes the funds they need are not large, and the interest expenses are naturally small. It's so small, the interest on a loan is no more than a hundred yuan.

When major banks are recruiting billions of customers, a vegetable wholesaler in the urban-rural fringe area may only need 35,000 to complete emergency turnover, but either the demand cannot be met, or the cycle is too long and the demand opportunity is missed. MYBank has just filled this gap in the market.

When MYbank was established in 2015, it was positioned as a purely online, purely credit-based inclusive finance service, serving small and micro businesses and not large customers. It still adheres to this positioning. In 2021, more than 70% of MYbank’s loans have interest rates of less than 100 yuan.

Why is the market blank? Just because it doesn’t make money.

Now we have to talk about the other side of finance, cost. Loans can indeed generate profits, but the prerequisite for profits is costs.

Financial business requires strict risk control, including account opening, due diligence, interviews, and mortgages. A loan often needs to go through multiple reviews. Under layers of approval, the operating cost of a small loan is more than 2,000 yuan. Most commercial banks are powerless to borrow money and lose money.

But obviously, if it is a small loan, the total interest is not enough to cover the cost. If it is a large loan but the cycle is short, it is still difficult to balance. However, MYbank changed the mortgage to credit and used technological means to reduce part of the cost. Relying on meager profits, we provide these small and micro operators with decent financial services.

The 2021 annual report data shows that 80% of the new users of MYbank are operational first-time loan customers. These people have never been able to borrow operating loans from banks before, and MYbank has completed their first business loans in their lives. once.

Three years after the epidemic, online merchant banks have become an existence that allows many small businessmen to still maintain hope.

Who is having the hardest time during the epidemic? I'm afraid it's just some small and micro business owners and their employees. After repeated attempts, no one dares to predict that tomorrow, those who can survive will all want to survive. On the one hand, the dawn may appear soon; For one thing, behind every small business that is about to fail, there are several families.

The power of online merchant banking is also reflected at this time.

From a business perspective, small and micro operators are the lifeblood of online merchant banks. What should they do when they encounter difficulties? In fact, it is a dilemma. On one side is the risk of rising non-performing rates and the pressure of costs, but on the other side is not only their dreams, but also the national economy and people's livelihood.What to do with

? MYbank’s choice is to reduce interest rates or even waive interest rates, accompany them through the risks, and bear the risk of bad debts themselves.

At the beginning of the epidemic, MYBank took action. In Wuhan Kaicheng, it provided interest-free services to 360,000 small shops in Wuhan for one month to help them ease the financial pressure for resumption of work. When Henan suffered floods, it provided small businesses across the province with Reducing fees and giving profits; Jiangxi and Anhui have entered the flood season, and it has provided free loans to 67 flood control counties, benefiting 1 million farmers...

Under the leadership of the All-China Federation of Industry and Commerce, MYbank has also launched the "Micro Assistance Plan" for three consecutive years. If small businesses are in need, support them wherever they can, reduce interest income, and help small shop owners and small businesses survive the difficulties.

What’s even more commendable is that MYBank not only provides help to small businesses through financial means, but also supports them to become the protagonists of helping others.

Starting in May 2021, MYbank has joined forces with media from 14 provinces to jointly find and support charity shops. By providing public welfare funds, free upgrades of operating equipment, etc., it will share charity costs for small shops that have long insisted on doing charity. Through a public welfare chain of "small shops help everyone, banks help small shops", we will help more people in need.

They treat strangers to free meals and haircuts, set up special positions for special groups such as the disabled, and provide remote homes and kitchens to cancer patients and their families... Among them, there are 96 small shops that insist on doing good deeds for more than It lasted for 10 years, and the longest-lasting store even exceeded 90 years.

As of this year, the number of store members supported by the MYbank Charity Store Alliance has exceeded 1,000, and they are distributed in 140 cities in 30 provinces, municipalities and autonomous regions across the country.

Public welfare is the conscience of society.

Whether it is said that it is duty-bound or unshirkable, MYBank's commitment to its original intention can stand the test.