Date: November 20, 2012 Source: Shanghai Financial News
Industrial Bank (IB) Shanghai Branch has long paid high attention to the financial services to small- and mini-sized enterprises. With sustained innovative measures and products, the branch has actively explored the ways to develop financial services to small- and mini-sized enterprises, intensifying the financial support to such enterprises across Shanghai. It has established independent pre-loan, in-loan and post-loan functional departments for small- and mini-sized enterprises, implemented credit policies and reviewing mechanisms different from those for large- and medium-sized enterprises, and built such cluster-based marketing platforms as government, commerce chamber, and industrial park, thus realizing the development of small- and mini-sized business customers in batches.
With a range of institutional arrangement, the branch implemented the requirements of relevant documents of the government and regulatory authorities in an effective manner, and gradually built up its distinctive business features and efficient professional capabilities in the financial services to small- and mini-sized enterprises. In the first nine months of this year, the increased loans of the branch to small- and mini-sized enterprises were far higher than those in the last year, 32% higher than the increase of all loans. The increase of loans to small-sized businesses with a single credit amount not more than RMB 5 million is 63% higher than the increase of all loans. The three “not-less-than” objectives were all fulfilled.
Well-established organizations providing more considerate services
The branch has established a financial service team for small- and mini-sized businesses with nearly 400 members at all outlets around the city to contact with small- and mini-sized business customers nearby, so as to provide convenient financial services to small- and mini-sized enterprises.
In the meantime, the branch has also set up sub-branches targeting at small- and mini-sized enterprises including Qingpu Sub-branch, Songjiang Sub-branch, Fengxian Sub-branch, Jiading Sub-branch, Baoshan Sub-branch, and Minhang Sub-branch. Grasping the opportunity of the campaign of “transformation and development driven by innovation” across Shanghai, it also made great efforts to develop technology finance. In this year, it has established two technology-oriented sub-branches: Zhangjiang Sub-branch and Yangpu Sub-branch, focusing on innovative technology enterprises and specializing in providing financial services to technology-oriented SMEs.
Simplified approval process enabling faster services
In 2012, IB Shanghai Branch further implemented the time limit based working system through making innovation in internal flow and linking in a whole, so as to improve the handling efficiency. In this way, the branch aims to meet the capital demands of small- and mini-sized enterprises to the largest extent. Centering on the financing demand features of supply chains, technology parks and industry clusters, the branch actively explored new financing methods such as investment-based joint loan and performance guarantee insurance based loan, carried out business cooperation with outstanding guarantee institutions to establish a streamlined operation system for loans to and guarantees for small- and mini-sized enterprises, so as to break through the financing bottles of SMEs with “light assets” in an effective way.
The branch has also adopted the green channel process for the approval of small- and mini-sized enterprises. Under a normal circumstance, the credit approval for a small- and mini-sized enterprise may be accomplished within three business days. Take the product of “Quick Loan to Small- and Mini-sized Enterprises” as an example: The branch finishes the pre-loan investigation within a business day after receiving the business application; gives a reply regarding the credit line, term and interest rate within a business day after collecting all materials required; and grant the loans within a business day after the enterprise goes through the formalities for pledge registration, insurance and extension approval. Such “one-business-day” system obviously improves the efficiency.
Furthering financial reform to provide more extensive services
In 2012, against the background of credit scale in great shortage, IB Shanghai Branch actively asked the Head Office for the special loan scale to small-sized enterprises, and gave priority to ensuring the business extension demands of small- and mini-sized enterprises across the city.
It is reported that the branch carries out independent assessment over the line for small- and mini-sized enterprises. In combination with the strategic orientation of developing small- and mini-sized enterprises oriented businesses vigorously, it has launched a number of marketing competitions, giving awards to customer managers with outstanding performance. Meanwhile, it implemented the differentiation policies like converting the number of customers into deposits as a trial, so as to enhance the enthusiasm of customer managers in developing businesses for small- and mini-sized enterprises.
IB Shanghai Branch will keep improving the system of financial services to small-sized enterprises, bettering the financial services to small-sized enterprises in an all-sided manner, and further implementing the “Four Separates” principle of the financial services for small-sized enterprises (namely separate credit program, separate allocation of human resources and financial resources, separate client identification and credit review and separate accounting) according to the ”Six Mechanisms” for granting credits to small-sized enterprises, so as to keep improving the capability to providing services to small- and mini-sized enterprises.