Big Data Could Be the Key to Boosting Bank Financing of Chinese Private Enterprise


The chair of one of China’s big four state-owned banks has pointed to big data as a key area of fintech for overcoming impediments to the financing of private enterprise in the country.

“The growth of fintech has created many positive conditions for banks to service small and medium-enterprise,” said Tian Guoli (田国立), chair of China Construction Bank according to a report from Financial News.

“With the assistance of technologies such as big data and cloud computing, banks can provide more effective supply to small and micro-enterprises.”

The remarks arrive just as the China Banking and Insurance Regulatory Commission (CBIRC) unveils targets for lending by banks to private enterprise, and amidst a concerted push from Beijing for greater credit extension to small and micro-enterprises.

“Modern technology provides opportunities for us to resolve [financing] difficulties…CCB has recently focused on the design and development of the big data smart app for small and micro-enterprises – ‘Hui Dong Ni’ (惠懂你), which has been released just a little over a month ago, and already has more than 1 million customers.

“Prior to this, we have also released big data products such as Yun Yue Dai (云税贷), which can provide loans in under a minute.”

Zeng Gang (曾刚), vice-head of the National Institution for Finance and Development (国家金融与发展实验室银行研究中心), points to big data as a key means of resolving the dilemma of the unwillingness on the part of banks to lend to private enterprise, by improving the assessment and control of risk.

“Just as a considerable number of industry figures have pointed out, the application of big data risk control technology could become a key means of optimising financial services for private enterprise,” said Zeng.

“However, it should be pointed out that while the application of the technology itself can help banks to increase risk identification capability, it absolutely cannot improve the risk quality of private enterprises themselves.

“For this reason, the creation of an ecosystem for servicing private enterprises by means of digital technology is the key to resolving financing difficulties.”

Related stories

CBIRC Says Targets for Lending to Private Enterprise Are “Directional,” Credit Standards Haven’t Been Loosened

Private Sector Accounts for over 60% of Economy Yet Just 25% of Bank Loans: CBIRC Head