At the third China Internet Finance Forum held on December 17, 2019, the National Supply-Chain Finance Digital Information Services Platform (the Platform) was officially launched. It is the infrastructure jointly built by and for industry players and another important measure to fulfill NIFA’s mission to “serve regulators, serve the industry and serve the society”, which aims to implement requirements by the Party Central Committee and State Council to improve financial services for the real economy and SMEs.
Alongside the rapid development of supply-chain finance and fintech, internet-based supply-chain finance has emerged, playing an increasingly outstanding role in addressing the financing difficulties as well as reducing funding costs for MSMEs. However, at the same time, there are problems such as over-reliance on core enterprises for credit transmission, the waste of resources due to repeated investment in similar platforms, and lack of sound corporate credit rating mechanism.
In light of that, NIFA established the “internet+supply-chain finance” working group (the working group) last July and later on initiated the construction of the Platform, which will collect and analyze supply-chain- and industry-chain-based information of MSMEs, and process the information in a standardized way, provide multi-layered profile of them and build their network graph. This will address the problem that financial institutions are unwilling and unable to issue loans due to their incapacity to identify the operation and financial condition of MEMEs. By doing so, the Platform could provide unified safe and effective supply-chain finance information services to the public.
By far, the Platform has been able to provide two types of services: comprehensive corporate analysis and customer due diligence. The output of a corporate analysis service is an in-depth analytic report based on compilation of public data such as business registration, judicial, tax, and utility data, corporate production data such as warehouse, logistics and ERP data, and trade finance data of the upstream and downstream enterprises of the industry chain. As for the customer due diligence service, the Platform will provide one-stop verification services for personal and corporate information inquiry based on traditional data source, biometric recognition and digital certificates, integrating various kinds of verification services on personal information, information from telecommunication companies, bankcard information, business registration information, facial recognition and voiceprint recognition. Moreover, a new feature has also been developed and will be launched soon, which will make it possible for the Platform to provide services such as the issuance, acceptance, underwriting and assignment of supply-chain bills by connecting to Shanghai Commercial Paper Exchange, as well as value added services such as to check the authentication of a corporate or a transaction, and to issue corporate credit risk alert.
By last December, the Platform has been working with over 260 companies who have the intention to connect, over 60 of which now are officially connected. The Platform will continue to bring in more data sources such as social security and education information to improve the multi-layered corporate profile and provide transaction matchmaking, risk control and risk warning services based on that. Trading and securitization services of chattel such as receivables, warehouse receipt, inventory and IP that are applicable to the internet financial industry will be rolled out step by step and a sub-system based on blockchain technology will be built.
What’s more, the work group has been taking measures to set up a series of business specifications, guidelines and technology standards, and will gradually put in place an overall self-regulatory framework for China’s digital supply-chain finance development.
Next, NIFA will continue to fulfill its mission and accelerate its work in supply-chain finance to promote financial inclusion and provide better financial services for the real economy and MSMEs.