Frequent note risk cases and changes in regulatory environment in 2016 virtually led to changes in note industry. With heated discussions about how to make electronic note transfer more secure and convenient, a note witness and custody system, aimed at avoiding moral risk of electronic note transfer and creating a secure, efficient and convenient electronic note transfer and transaction environment for small and micro businesses, was launched.
Recently Industrial Bank Digital Finance Information Service Co., Ltd. in cooperation with IB Shanghai Branch and tcpjw.com held a launch ceremony for “Swordsman”note witness and custody System in Shanghai. Based on information exhibition and matchmaking platform of tcpjw.com, this system was created by Industrial Bank Digital Finance Information Service that took advantage of its technological innovations in finance and integrated functions of account supervision and payment of IB. It can provide security and convenience of finance plus technology for note transfer and financing service of small and micro businesses.
Zhao Cila, a top expert in note industry of China, Chen Chong, president of Industrial Bank Digital Finance Information Service, Lu Minfeng, secretary-general of Jiangsu Internet Finance Association, Cao Shijin, chairman of tcpjw.com, some bank and note broker institutions as well as enterprise representatives witnessed the launch of this system.
“Swordsman” Ensures Security of Electronic Note Transfer
In order to make note market under regulation, reduce risk of note business and ensure security of note transaction, from September to November this year, the central bank issued two regulatory papers: Notice on Regulating and Promoting the Development of Electronic Commercial Note Business and Notice on Making Good Preparation for Accessing Note Transaction Platform.
“From these two papers, we believe that electronic note will become the mainstream in the note industry and the future note market will be the era of electronic note,” said Chen Chong, president of Industrial Bank Digital Finance Information Service, at the ceremony.
Zhao Cila, an expert of note pointed out that the electronic note market will usher in rapid development and transformation. In 2018 paper notes of more than 1 million will exit interbank transaction. Future electronic note has functions of financing and payment of electronic money, and will reduce financing costs of enterprises in essence.
In the first half of this year, Industrial Bank Digital Finance Information Service officially entered the field of electronic notes. By dint of half-year’s in-depth analysis of the status quo of note market and the core demands of main participants, Industrial Bank Digital Finance Information Service developed and launched “Swordsman” note witness and custody system. In August this year, it reached strategic cooperation with tcpjw.com, completed connection of “Swordsman” system and system of tcpjw.com, realized perfect match of the process of note business, made respective match of information flow, capital flow and note flow of electronic note transfer, formed online closed loop transaction, and helped entities achieve safe note versus payment in note transfer and transaction.
It was named “Swordsman” for the meaning of “a person holding the sword of damocles”, and symbolizes ensuring security in electronic note transaction.
“‘Swordsman’ note witness and custody system is scientific and technological system for communication of information flow and capital flow in transaction and ensuring capital transfer matches the real scene of transaction, and ‘Swordsman’ note transfer witness business is its first application scene,” said Mao Qianghua, general manager of Department of Inclusive Finance of Industrial Bank Digital Finance Information Service at the ceremony.
According to his detailed explanation, “Swordsman” (stage I) system possesses three core functions: first, opening an account online. A company can open “Swordsman” electronic account online, and bind entity business accounts of all banks nationwide; second, note versus payment. A user completes endorsement and transfer witnessed by “Swordsman” system; third, business compliance with regulation. The system introduces “Yitianjian” electronic contract platform created by Industrial Bank Digital Finance Information Service based on latest block chain technology, and provides bank-level contract services compliance with regulation for users.
The security of the system is also owed to IB’s strong capabilities of security. Weng Dezhang, assistant of governor of IB Shanghai Branch said, “Swordsman” system integrates mature experience in account supervision and secure payment, excellent management capabilities and brand advantages of IB Shanghai Branch, and can provide more convenient finance plus technology services for note transfer and financing service of small and micro businesses in the premise of compliance with laws and regulations and risk prevention.
Three-step Strategy Builds Leading Inclusive Financial Cloud
Faced with tide of electronic note, all participating parties said at the ceremony that guided by “science and technology leads business innovation”, they will actively give full play to their respective advantages, build cross-regional credit platform, effectively alleviate difficult and expensive financing of small and micro businesses, and made contribution towards promoting long-term development of domestic note market.
While what will Industrial Bank Digital Finance Information Service do during this process?
Chen Chong said that Industrial Bank Digital Finance Information Service is not a software company in essence, but a digital financial company that holds information asset through building and running platforms and provides financial information services. As a shareholding subsidiary of IB, Industrial Bank Digital Finance Information Service is aimed at offering financial information cloud service to small and medium-sized banks, non-banking financial institutions and small and micro businesses, and is the main platform for IB Group to make innovations in digital finance.
He said, to enter the electronic note industry is the first step of Industrial Bank Digital Finance Information Service to build inclusive financial cloud. At present, the company is focused on completing an all-round upgrade of existing science and technology output, setting up a leading cloud computing center in compliance with regulatory standard of banking industry, enhancing science and technology service of small and medium-sized banks and building bank cloud.
On this basis, the second step is that, based on experience of non-banking financial members of IB Group, it will further expand the connotation and extension of banking industrial cloud service, provide cloud financial information services for non-banking financial institutions and all types of Internet financial enterprises, and upgrade bank cloud to financial cloud.
In the future, Industrial Bank Digital Finance Information Service will rely on financial cloud to connect small and medium-sized businesses, provide more accurate, timelier and more personalized financial services for small and medium-sized businesses through data accumulation and analysis, and create a leading inclusive financial cloud service platform in China.