OneConnect Launches Blockchain-based Supply Chain Finance Platform

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Ping An’s fintech vehicle OneConnect (壹账通) has incorporated a slew of emerging technologies into its “Yiqilian”  (壹企链) smart supply chain finance platform that was launched in Shenzhen earlier this month.

According to OneConnect the platform uses blockchain, big data, cloud computing and artificial intelligence to better connect core enterprises with their upstream and downstream partners, as well as logistic companies, banks and other financial institutions.

OneConnect said that the Yiqilian platform uses blockchain and e-certificates to enable the supply chain credit system to cover more than 70% of customers who were previously beyond its reach.

Yiqilian also uses the blockchain to establish a cross-regional, cross-bank trade financing network for cross-verification purposes that can help to mitigate the risk created by borrowers seeking funds from multiple institutions.

Lu Yifan (陆一帆), an executive from OneConnect’s blockchain R&D department, gave the example of an enterprise engaging in repeat financing by using 5 million of its orders as a pledge for funds from a bank in Shanghai and 7 million orders as a pledge for funds from a bank in Shenzhen, despite only having a total of 10 million orders.

Blockchain technology can help these banks to perform cross-verifications without needing to fully share data or information they would prefer to keep to themselves for security reasons.

The launch of OneConnect Yiqilian platform arrives just after Huang Runzhong (黄润中), chief secretary of the China Banking Association (中国银行业协会), revealed on 16 October that it was teaming up with multiple parties to create a trade finance cross-bank transaction information system using blockchain technology.

 

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