On December 13, as learnt by the reporter at the Launch of New Product of Direct Bank and Electronic Banking Club of Industrial Bank (IB) held in the Shanghai International Convention Center, the “Industrial Family” of IB's Direct Bank, based on the original six product series, saw another new channel for investment and financing products by pledging bank acceptance notes – “Industrial Bill (Xing Ye Piao)”, focusing on bill wealth management products of which the investment objects are bank acceptance notes, and for which the risks of repayment upon maturity are fully borne by the insurance company.
Bank acceptance note is the bill for which the accepting bank warrants to pay the defined amount of money to payee or note holders unconditionally on the designated date, and it is the commonest tool for settlement among enterprises. It is said that the investment and financing products by pledging acceptance notes of “Industrial Bill”, originating from the financing model based on discounts with bank acceptance notes, support trading with small-amount bank notes, and the operating mode is not complex. If an enterprise wants to finance at the platform of “Industrial Bill” with bank acceptance notes, after checking the notes, IB will take such notes as the pledge and determine the financing volume and term according to the issued value. In addition, the platform of “Industrial Bill” launches the relevant product and determines the rate of return and term. Then, investors may make subscription. Upon the maturity of the product, the platform of “Industrial Bill” may encash the acceptance notes with the accepting bank, namely it can pay the principal and interest to investors in light of the agreed rate of return.
According to introduction, no threshold is established for of the purchase of “Industrial Bill” products, with the initial purchase value of RMB 1. Within an investment period which is usually 1-6 months, investors may receive return upon the day of purchase without charge. The reference annualized rate of return is about 5.2% to the minimum. Upon the maturity of product, the principal and return of investors will be paid into the original bank cards that they used upon purchase, so the security is guaranteed.
Upon the first purchase, an investor may open an account of “Industrial Bill” at the PC end with a debit card of any of the following banks: IB, ICBC, CCB, ABC, CMB, PSBC, CMBC, China CITIC Bank, CEB and Ping An Bank, etc. Then, Easylink Payment Co., Ltd., the payment partner of “Industrial Bill” will call back via a voice telephone to check identity and bank card information with the investor. After passing the certification, the investor may make a purchase instantly. With the follow-up payment, the investor only need to key in the security trading password that he or she had set to finish the purchase.
For all products sold at the platform of “Industrial Bill”, the borrowing enterprises provide IB with guaranteed repayment by pledging the bank acceptance notes, and China Continent Insurance underwrites in full the risks of repayment upon maturity. This means that investors need to bear nearly no risks.
With the launch of “Industrial Bill”, the service channels of IB’s Direct Bank which was launched officially on March 27 have been extended to seven series: besides “Industrial Bill”, there are also “Business Boom (Xing Ye Hong)” – a service channel for investment products based on equity, “Industrial Treasure”, a T+0 direct sale fund product channel with both investment and wealth management functions and consumption and payment functions, and channels for wealth management products with principal and fixed returns guaranteed, including “Zhi Ying Bao”, “Wealth Management”, “Fixed Deposit” and “Fund”. By the end of November 2014, IB’s Direct Bank has accumulatively developed more than 500,000 customers, with its assets totaling more than RMB 50 billion.
Apart from return and security of funds, customer experience is also the key for direct bank to win out. For this, the relevant person-in-charge of the Electronic Banking Department of IB indicated, the Direct Bank of IB has always followed the business concept of making innovation both in products and services. Choosing to hold the launch of a new product together with the activity of Electronic Banking Club, the bank intended to collect opinions and suggestions from customers extensively so to as improve the customer experience. Since the establishment of Electronic Banking Club, the members of which are all customers, in 2006, IB has organized the award-based activity for collecting experience suggestions named “Listening to Your Voice” for years consecutively, boosting the constant improvement of its product and service quality.