The Chinese central bank has unveiled the debut set of fintech innovation regulatory trial applications for Beijing’s new fintech sandbox.
According to an announcement made by the People’s Bank of China (PBOC) via its official website on 14 January, the first set of trial applications will involve areas including the Internet of Things, micro-and-small loans, smart banking and mobile phone point-of-sales (POS).
Participating financial institutions include China UnionPay, the Industrial and Commercial Bank of China (ICBC), the Agricultural Bank of China (ABC), China CITIC Bank, Bank of Ningbo and aiBank, while cooperating tech companies include Xiaomi, Du Xiaoman Financial and JD Data Sciences.
| No. | Application name | Trial entities |
| 1 | Product tracing certification management and supply chain financing based on the Internet of Things (基于物联网的物品溯源认证管理与供应链金融) | ICBC |
| 2 | Weijie Loan product (微捷贷产品) | Agricultural Bank of China |
| 3 | China CITIC Bank Smart Token product (中信银行智令产品) | China CITIC Bank/ China UnionPay/ Du Xiaoman Financial, Ctrip |
| 4 | AiBank Inside product | CITIC aiBank |
| 5 | Rapid Review Rapid Loan product (快审快贷) | Bank of Ningbo |
| 6 | Mobile POS innovative application (手机POS创新应用) | China UnionPay/ Xiaomi/ JD Data Science |
ICBC’s “Product tracing certification management and supply chain financing based on the Internet of Things” (基于物联网的物品溯源认证管理与供应链金融) application makes use of IoT technology to gather full lifecycle data on a given product, covering areas including manufacture, quality inspection, storage, logistics and sales.
This data is then recorded on a blockchain and integrated into the ICBC IoT services platform and its enterprise smart management system (物联网服务平台及企业智能管理系统) to achieve full quality control and information transparency for products at all segments.
ICBC says that the application could reach over 300,000 individual customers and over 1 million transactions per year worth in excess of 50 million yuan.
ABC’s “Weijia Loan Product” (微捷贷产品) trial is a micro-loan product that makes use of big data and cloud computing technology to help ease the financing difficulties of micro-and-small enterprises.
The bank estimates that the Weijia Loan Product could reach up to 150,000 customers by the end of 2020, for a lending balance of at least 100 billion yuan.
Bank of Ningbo’s “Kuai Shen Kuai Dai” (快审快贷) (Rapid Review Rapid Loan) product involves the use of big data and artificial intelligence to comprehensively “automate and optimise” the loan assessment and lending process for enterprises and individuals.
According to Bank of Ningbo the application can resolve the problem of information asymmetries encountered during the lending process, and achieve true “smart management” of financing to facilitate MSE lending.
The China CITIC Bank Smart Token Product (中信银行智令产品) is a collaboration between China CITIC Bank, China UnionPay, Du Xiaoman Financial and Ctrip, which makes use of an API open banking environment payments token technology to create a “smart token” for facilitating interactions between commercial banks, e-commerce enterprises and other businesses.
According to its developers the product will “optimise service processes, expand application scenarios, innovate cooperation models and raise the quality of financial services.”
CITIC aiBank’s AIBankInside product also makes use of an API open banking environment to provide “plug-in” financial services that can be integrated into a broad range of settings and scenarios.
The “Mobile POS Innovation Application” jointly developed by China UnionPay Xiaomi and JD Data Sciences is aimed at vendors such as micro-and-small enterprises, and focuses on scenarios involving small-sum payments.
The independently developed POS product accommodates a range of payment methods including mobile flash payment, QR code payment, and bank card flash payment.
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