Recently, Zhongguancun Sci-tech Financing Guarantee Company (“Company”) officially released its first bank guaranteed credit product based on big data--“ICBC Guarantee”, which is co-developed with the ICBC. Based on multi-dimensional data, including transactions, assets, credit and so on, the ICBC uses the Internet and big data technology to build models for customer screening, quota calculation and risk monitoring, to generate “white-list” customers.

Relying these customers, the Company and the ICBC have made a lot of attempts and innovations to offer a more competitive and convenient product. This new product serves as a solution to the financing difficulties faced by technology firms of medium, small and micro size, which may benefit their development.

1. The development of financial industry driven by big data

In recent years, new technologies, such as big data, cloud computing, artificial intelligence among others, have made rapid development. The in-depth integration of these new technologies and financial services has greatly promoted the innovation and upgrade of financial products and assisted the finance sector to better serve the real economy.

The big data technology, with the most matured and widespread application in the financial industry, provides a useful tool for banks and other financial institutions to serve medium-sized companies and SMEs and to offer inclusive financial services.   

The big data technology refers to the collection, analysis, mining and application of large-scale data. It involves collecting a wide range of data using certain methods or tools, analyzing the rule behind the data, and mining their value, to inform the decision making or to apply the results directly to corresponding products and services.  

The application of big data in the financial industry has become an important means and tool of financial innovation, as well as core competitive elements of the future development of financial institutions. At present, the big data technology has been extensively used in specific businesses, such as transaction fraud identification, precisely targeted marketing, consumer credit, risk assessment, supply chain finance, risk pricing and other fields. 

2. Distinct advantages of “ICBC Guarantee”

First, target customers are screened by the big data model instead of manual work. It makes full use of big data information, including bank account opening and settlement information, information of credit investigation from the PBC, anti-fraud information, and information from the industrial and commercial administration as well as taxation department, to classify “whitelist” customers on the basis of different practical scenarios. 

Second, precisely targeted marketing is conducted cooperatively by the bank and the guarantee company. According to the specific characteristics of whitelist customers, the product uses “Automatic acceptance of the cooperative bank’s white-list customers + Preliminary screening of marketing list by the guarantee company + Investigation and confirmation by branch banks” to find potential customers and improve the success rate of marketing. 

Third, the coverage of sci-tech enterprises is expanded. The sci-tech enterprises are no longer identified only by National or Zhongguancun high-tech enterprise certificates, but also by proprietary IP rights, relevant government subsidies and incentive funds. 

Fourth, the business process and efficiency are improved. With the aim to send loan notices within 2-5 working days, business processes are optimized by simplifying review report formats and contract versions and curtailing the contract approval procedure.

As the first micro credit product in the big-data category of Company, “ICBC Guarantee” is a phase achievement of Company’s active exploration of “finance +technology”. It will certainly play a great demonstration role in serving the financing of technical SMEs, laying a solid foundation for Company’s strategic layout.