With financial technology for the supply chain finance plug in flying wings

On July 19, at the 2017 Fintech and Supply Chain Financial Innovation Summit Forum, Song Hua, vice president of the School of Business, Renmin University of China, gave a lecture entitled "Wisdom Supply Chain Finance Based on Large Data", Song Hua pointed out With the recent financial return to the real economy is getting higher and higher, how to build our industry-based supply chain finance today, especially in the financial technology to promote, has become an important national policy of our country.

After the speech, Song Hua accepted the interview with reporters, in particular, the interview stressed the establishment of "thick" data based on the financial risk management system, the real sink through the "5W1H" approach to the accumulation of massive data, and the use of our financial Technology to build a holistic, systematic supply chain system.

The following is a wonderful interview:

First, the wisdom of supply chain finance and traditional supply chain finance compared to what advantages?

This problem first of all from what is the meaning of intelligent supply chain finance. Intelligent supply chain finance is built on the basis of digital, intelligent.

The so-called digitalization in the computer virtual environment for the entire supply chain process to assess and optimize, and further promote the entire life cycle of the new organization.

The conceptual connotation of the digitization itself lies in what is meant to improve the coordination of the information within the supply chain itself, which is the meaning of the digitization.

And intelligent, it is based on the digital, through our Internet, monitoring technology to strengthen the entire supply chain information management, services, to improve the controllability of the supply chain, and the initial, we said the intelligent means and intelligent system , The construction of efficient operating system, its core is to improve our integration of the supply chain effect, reduce our entire supply chain transaction costs.

To the wisdom of the stage, it is in the entire supply chain process of governance activities, that is, we can rely on access to a variety of data, analysis, reasoning, judgment, ideas and decision-making, in a certain sense to replace our manual analysis Method, analysis process, it pushed the entire supply chain to a flexible and highly integrated process.

Second, the Internet supply chain finance What is the current good model? Internet supply chain finance in the field of commercial applications in the field of commercial operations can give a few examples?

There are four basic organizational units in the supply chain finance: the supply chain upstream and downstream, the platform service provider, the risk manager, the liquidity provider, and the different combinations of the four Different pattern. There is a collection of four elements as one, such as UPS and GE, this model is generally the industry's large enterprises.

I would like to give a few good examples, such as the Hong Kong Li & Fung Group, Li & Fung Group from the beginning of last year also large-scale push supply chain finance, they are involved in the application process a large number of overseas suppliers, especially our Chinese suppliers.

The problem is that even if a supplier produces a product, from the formation of a bill of lading to the sea, to customs clearance, customs clearance, local distribution, this time to issue a bill cycle. If the cycle is 60 days, it means that 60 days to get the money.

But today we are a large number of small and medium-sized suppliers can not afford a few days of financial pressure, it is in this case, the Hong Kong Li & Fung Group in 2014 set up a special financial company is Li & Fung credit, once I give you orders may form Potential accounts payable, the supplier can transfer the accounts receivable once, we all know that the financial among the most popular financial practices called factoring.

There is a problem out, in fact, many of our suppliers today, how to discount, discount is how much. Coupled with a lot of suppliers today did not give it orders, it needs to introduce equipment to enhance the capacity, in which case it is difficult for a financial institution to finance it.

So it is in such a state, this year, Li & Fung Group proposed digital supply chain, is to use large data to drive supply chain finance. What is the big data driven by the supply chain finance, that is, you now see this figure.

With each of the activities of the supply chain, how can we through our information, to all the role of the supply chain activities, it can be highly data, information through the formation of this through.

To cite another example, the ant gold suits recently two years of large-scale rural supply chain finance. How are they doing now? First in the rural side to establish a small shop, and vice versa to seize the industry leader, with the leading enterprises to cooperate, leading enterprises to support the entire production and operation, so to penetrate the bottom of the customer.

Two weeks ago I came to Jiangsu, Jiangsu has one of the most important large enterprises engaged in farming, Yike is now one of China's poultry breeding three Musketeers. Like we eat week black duck, basically are beneficiaries to support. What is needed and what needs a lot of farming? And today we farmers from small farmers to large farmers to develop, more and more from the backyard to abscess, in the process requires a lot of money.

But the problem is that the beneficiaries themselves can not solve these problems, so they cooperate with the ant gold service, by the ant gold service to understand, through the payment of information to pay Alipay, clearing information to grasp all the farmers state, combined with the benefits of control of the passengers Farmers information, on the basis of all the farmers to credit information, based on the evaluation, by the farmers to purchase the benefits of feed, after the slaughter of this thing to the beneficiaries, and then repayment of funds, this approach is very typical Penetrate the bottom of the client application to get the data, which is what we say about the way to obtain data, this is a very important way.

Third, for industrial practitioners and financial institutions how to do large data supply chain finance? From which aspects?

Do a good job of large data supply chain finance, we must clearly grasp the 5W1H. I often say a lot of big data today, in fact, many companies today in the big 忽悠, did not really do so, really do must go to solve these problems.

First, WHY, why do we have big data, the purpose of how we decide to build. Supply chain finance point of view, our large data applications for what? In order to better understand the key stakeholders in the Internet supply chain finance, in particular the operational capacity and potential risks and potential risks of financing objects, it means that we have the purpose of building data sources and what technical means we can use to be effective To get, we must first understand why the object is currently facing this need.

Second, we object WHO problem, in fact, whether it is the Internet of things platform chain, or large data, we have to know which main body. Of course, first of all to do supply chain finance, we must cover our financing object, but only cover the financing object is difficult, you can control the risk.

The reason is very simple, we are many companies today, there will be a high rate of default, shameless is why, not necessarily their own malicious behavior. Because his counterparty and his trading partners have problems with financial risks, so we not only to understand the financing of the object, but also to understand the financing of the object of the counterparty and financing of other partners, these problems do not solve the real Grasp the supply chain finance to effectively control the risk.

In addition, there is our own, we are doing supply chain finance. If our partner is out of the question, we are also very difficult. Such as our supply chain participants, and our affiliates.

Because we can not effectively solve this kind of affiliated service is also difficult, but also easy to go wrong. For example, we will be involved in the supply chain finance will be related to commercial banks. If we are today's commercial banks own system, our management model, can not be a good application of our entire industry business, supply chain finance is very easy to go wrong.

Third, we need what (WHAT) data, we need time and space data. In other words, the data generated at different times, as well as data generated in different regions, we can understand; there are subject and object data, the so-called subject is our business object, our business.

What is the object, the subject matter, the subject matter, our products, our production tools, this objective thing, the objective things are changing, the market is changing; there is one, our elements and emotions. Elements, our financial elements. What is the emotion, it is important for the financier to own the reputation of the object itself. Especially in our gradual supply chain finance to supply chain network finance, this emotional data is very important; there is a single point and network data. A single point is a business, the network is its business foundation.

The other one, where we get the data (WHERE). I want to get the data, nothing more than a few aspects. First, go directly to find. This is not necessary to tell us that the data in our business, financial institutions or other institutions can get the data, there is a very important data is indirect channels.

I often talk about how to deal with an object operating state, in addition to direct operation, there is a very important. For example, if you put these, this indirect channel data can be grasped, for the control of supply chain financial risk must be beneficial, so we today is the channel from the multi-channel status.

There is a WHEN, we need time data, we need triple data. First, historical data, but there is no historical data, no. So I often say that the strict sense of the bank credit data is useless, why?

First, the bank data can not cover our small and medium enterprises.

Second, the bank data is only historical data, in today's China, good yesterday does not necessarily represent a good today, but can not represent a good tomorrow. Today, banks are sad reminder, why banks do small micro-financial bad debt rate is so high,

It is because they are not in the industry, can not enter the industry, they have the data in question. We have to talk about a question today, how to grasp the real-time data and the upcoming data, this issue is very important. What it needs, what we need today's innovative means of financial technology, can get real-time data and imminent data. Such as block chain, Internet of Things, such a means to be able to solve the problem.

There is a HOW, through what way. First, through the bottom of the business accumulation, to get accumulated data, is to penetrate the customer's supply chain operations in the bottom, in the bottom of the process to obtain data. Second, we get data through public channels and third parties, the most important through the Internet of things, block chain, cloud computing to get the data, these are the data we need to solve today.

Fourth, how to supply chain finance to the Internet transformation, where the future direction of development?

Supply chain finance development There are several aspects,

The first to the Internet platform-based industrial integration is intensifying, the development trend of supply chain finance where? Is the industry integration, interconnection-based industry integration.

The second industry supply chain, as an ecology, begins with a combination of financial ecology.

The third is that financial technology has become the leading force in promoting the wisdom of supply chain finance, but this technology is a harmonious and coordinated financial technology, not a single technology.

The fourth risk prevention has become the core of supply chain finance.

The fifth collaborative specialization will be the subject of the wisdom of supply chain finance, and I think this is what we can see today in China's supply chain finance in the development process may be the context.

Fifth, for the traditional commodity business into the Internet, what are your suggestions?

My advice is:

First, really understand the value of optimizing the customer to enhance, it is very important, one can not really understand the value of our industry side, you do not know how to build the platform, you do not know how to optimize, you do not know how to upgrade.

Second, the real use of our financial technology to build a holistic, systematic supply chain system, do not stay in the financial technology. Today, many people say that the block chain is false, there is no really to do business, can build the system, no! This is not enough.

Third, in the supply chain system based on the development of rich supply chain services, financial products, bulk materials must solve this problem.

Fourth, the establishment of "thick" data based on the financial risk management system, because your wind control once managed, a lot of things are not to mention.