Pioneering Financial Accessibility for SMEs and Agriculture
At the forefront of financial innovation, MYbank, a prominent internet bank in China and an affiliate of Ant Group, recently unveiled its latest digital solutions at the Singapore Fintech Festival (SFF) held on November 16, 2023. These groundbreaking offerings are aimed at enhancing financial service accessibility for small and micro-sized enterprises (SMEs) and the agricultural sector.
Spotlight on Tomtit, Goose, and Lark Systems
The spotlight was on three innovative systems: Tomtit, designed for rural finance; Goose, for supply chain finance; and Lark, for automated credit line management. These digital platforms are tailored to help SMEs surmount financial hurdles and improve service accessibility for MYbank’s extensive client base of 50 million SMEs.
Keynote Insights from MYbank’s Vice President
Hao Jiang, Vice President of MYbank, underscored the bank’s commitment to SME financial services during his keynote at the festival. He emphasized, “MYbank specializes in SME financial services. Our financial technology solutions are designed to address the specific needs of our extensive and long-tail customer base.”
Addressing the Global SME Challenge
According to the World Bank, SMEs constitute about 90% of businesses worldwide and contribute over half of global employment. Despite their significant presence, these enterprises frequently grapple with limited financial access. MYbank has recognized these challenges, particularly the hurdles of limited coverage and accessibility, which often compel SMEs to navigate cumbersome traditional banking processes.
The 310 Lending Model – A Game Changer
Breaking new ground, MYbank’s “310 lending model” through its mobile app and cloud-based infrastructure simplifies the loan process. This innovative approach allows SME owners to secure collateral-free loans quickly, drastically reducing the application and approval time.
Also read: Ant Group’s Ambitious Global Expansion: A Journey Through Technology and Talent
Tomtit – Transforming Rural Finance
Rural financing, hindered by numerous challenges, has been revolutionized by the Tomtit system. Using satellite remote sensing technology, Tomtit enhances credit decision-making for farmers seeking collateral-free loans. This system has notably benefited 1.5 million growers in China by June 2023.
Goose – Innovating Supply Chain Finance
The Goose system is reshaping supply chain finance by utilizing advanced technologies, including graph computing and blockchain. This system enables SMEs to obtain credit lines without the need for collateral or client guarantees, significantly boosting loan accessibility within major supply chains.
Lark – Simplifying Credit Line Management
Lark, an AI-driven conversational risk control system, has been introduced to aid SMEs in managing their credit lines more effectively. By processing a variety of data, Lark provides customized credit solutions, serving over 8 million users with substantial credit limit increases.
Maintaining Robust Risk Management
With its innovative technologies, MYbank has successfully extended credit lines to SMEs while keeping a controlled non-performing loan (NPL) ratio. This achievement is a testament to the effectiveness of MYbank’s risk management strategies.
Future Outlook by Hao Jiang
Concluding his presentation, Hao Jiang expressed optimism about the future of financial technology. He stated, “MYbank has developed Tomtit, Goose, and Lark systems to help SMEs overcome the difficulties of traditional financing services, which are often slow, difficult, and expensive to obtain. This innovation enables MYbank to offer purely online financial services to more SMEs. In the future, AI and other technologies will increasingly reshape the financial sector, benefiting everyone in the process.”
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