"Currently, commercial banks are being hit by an unprecedented impact from financial technology companies. In the face of challenges, commercial banks can only nurture new business blueprints if they more firmly embrace technology, embrace innovation, consolidate industrial foundations, and consolidate their advantages in the ability to allocate social resources. Responding to Internet finance with the financial Internet."
On November 18, Zhang Xiaohui, Dean of Wudaokou School of Finance of Tsinghua University and academic advisor of the China Institute of Inclusive Finance, made the above statement at the 2020 China Inclusive Finance International Forum.
Zhang Xiaohui believes that the development of digital supply chain finance can maintain the competitiveness of the banking industry, especially the reform of small and medium banks, and change the business model of traditional commercial banks with high capital consumption, high credit availability, and high cost operations.
Internet companies have begun to aggressively enter the corporate business (to B business) after subverting the traditional business paradigm of the bank after their personal financial business (to C business) service model, profit model, customer acquisition model and even payment intermediary status. Zhang Xiaohui said that the future technology and financial companies will fully penetrate the industrial value chain, and transform and upgrade their production, trading, financing, circulation and other links, build rich new scenarios, and significantly improve the efficiency of resource allocation.
"Currently, fintech companies may be following the same path as the C-end market to enter the B-end market, that is, focusing on the long-tail customers of small and micro enterprises that are not willing to develop the business in commercial banks, and try to classify the characteristics of the enterprises to apply The online and standardized customer acquisition and risk control model has transformed commercial banks' one-to-one retail format into a one-to-N wholesale format, greatly reducing transaction costs and effectively controlling risks." Zhang Xiaohui believes.
Zhang Xiaohui said that the organizational format of digital supply chain finance and industrial upgrading, and the deep integration of financial technology development, is unique in that its deep industrial foundation, from industry to finance, has overturned the financial sector based on finance. The traditional financial paradigm combines the explosive power of finance and the persistence of the industry. It also realizes the reconstruction of finance in terms of capital, risk control and channels, and is an important foundation for banks to maintain market competitiveness.
Zhang Xiaohui said that in the foreseeable future, not only the customer base of small and micro enterprises, but medium and even large customer groups may also be diverted by financial technology companies, and the significance of the banking industry will be questioned. Monetary policy will also be rewritten based on the logical basis transmitted by commercial banks. In this process, small and medium-sized banks will face greater and faster shocks.
“Therefore, digital supply chain finance is the basic position for the banking industry, especially small and medium-sized banks to maintain fair competition with financial technology companies. Without this basic position, it will be difficult for the traditional banking industry to survive in the future. In other words, the current promotion of the reform of small and medium-sized banks, In addition to supplementing capital and improving corporate governance, it is more important to maintain the competitiveness of the Bank of China." Zhang Xiaohui said.
Specifically, Zhang Xiaohui believes that digital transformation must be included in the reform plan of small and medium banks. Because the cost of digitalization is not low, it is difficult for small banks to bear it independently. "In the era of digital economy and regional integration, management should allow small banks to merge. To integrate resources and enhance regional competitiveness.”
For the financial management department, Zhang Xiaohui said that it is necessary to follow up with the changes of the times, innovate the design and regulatory requirements of the era, accelerate the adaptation to the needs of the development of the digital economy, and resolve the asymmetry of financial technology information. The problem is to prevent the hidden financial risks of technological changes by penetrating and understanding the financial technology industry and identifying risks.
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