In recent years, as the promulgation of the State Council’s policies for vitalizing consumption and strengthening the long-lasting function of domestic demand in promoting economic growth, the market of consumption loans have become a “foothold” for all major commercial banks. Commercial banks achieve breakthrough in the transformation of retail business by providing consumption loan products that are driven by technologies and innovation and witness great reputation and sales.
On June 6, Industrial Bank (IB) announced to release “Xing Flash Loan”, a one-stop self-service online consumption loan product, in Shanghai. This product applies online self-service operation and supports fund granting within 10 minutes without mortgage or security. The maximum amount is RMB 300,000. This is another important measure of IB that responds to the national policies of promoting consumption growth, fulfills the requirement on national consumption upgrade and facilitates the development of consumer finance.
Unconventional and one-stop online service takes one step ahead
Different from the mode of traditional online loan products featuring “online application and offline approval”, the “Xing Flash Loan” released by IB applies one-stop self-service online operation and is really “fast” for clients. Its application, approval, contracting, fund grating and repayment are all completed online. Clients do not need to visit any outlet nor provide any paper material. All they need to do is to provide their bank card number, communication address, loan purpose and other simple information, sign the electronic loan contract, enter the SMS authentication code and bank card password according to the prompt to verify their identity before completing the loan application and fund withdrawal. “The whole process takes only a few minutes. The automatic approval produces results in 1 minutes. After the loan is approved, we will notify clients of the amount of loan and valid term of withdrawal, which is very convenient for clients,” said by Zhang Hao, the deputy manager of the Retail Asset and Liability Department of IB.
In addition to simple operation, fast approval and high credit line, the “Xing Flash Loan” also features long credit extension and flexible mode of interest calculation. The longest credit extension is 3 years, in which clients may withdraw, borrow and repay money anytime based on their needs. The charges are calculated by the actual days and amount used, which effectively reduces the financing cost for clients, satisfies the consumption financing demands of clients for home appliance, decoration, large-amount durables consumption and the purchasing of self-owned cars.
Report has it that the main client base of “Xing Flash Loan” consists of “white list” clients of IB debit cards, including employees of governmental organizations, clients applying for house loans, clients subject to payroll credit and etc. Compared with the existing online loan products of most banks that are “only open to part of high-end and supreme clients”, IB's product is more extensive and inclusive. After obtaining the identify verification information of clients and the authority of credit investigation by relying on the big data analysis technology, “Xing Flash Loan” can quickly grasp and timely analyze the credit report and judicial data of clients, then automatically generate a comprehensive credit evaluation and determine the credit line, thus increasing the accuracy of loan approval and the controllability of business risks.
Correspondingly, “Xing Flash Loan” has constructed a multi-functional application platform that supports online banking, mobile banking and Wechat application. Clients can complete the loan application and withdrawal only by a few clicks in the IB Wechat Bank.
Surpassing competitors, consumer credit service becomes a driving force for retail transformation
The reporter noticed that there are many kinds of consumer credit products on the market. While attracting clients with speed, “Xing Flash Loan” also innovates in marketing. By actively extending credit for and inviting the client reserve on the “white list”, IB has initiated a more efficient and precise channel for obtaining clients.
“We set multi-dimensional screening conditions; approve and extend credit in advance based on the asset, credit record, performance capability, the status of existing mortgages and other comprehensive information of ‘white list’ clients; actively figure out the intention of clients when using our products, and achieve batch operation. This not only helps us enhance the efficiency of granting, but also allows us to store client resources and control risks.” Zhang Hao told the reporter.
In the opinion of insiders and from the perspective of inclusive finance, the “Xing Flash Loan” based on pure credit and full-process operation delivers the financial idea of “establishing favorable personal credit and making a better life” to consumers in an objective way, which is beneficial to the construction and perfection of social credit system.
In recent years, IB has adapted itself to variations and continuously facilitated operation transformation under challenging market circumstance. In terms of retail finance, IB has taken personal consumption loan, featuring strong antiperiodic ability and light capital, as an important measure to optimize the retail credit structure and enhance the core competitiveness of retail banking. As a result, the business size and benefits have been increased dramatically, so is the comprehensive revenue of retail assets. According to the annual report of IB for 2016, by the end of 2016, the balance of personal loan (excluding credit card) reached RMB 633.681 billion, up by 47.28% compared with the beginning of the year; the total amount of personal loans granted throughout the year reached RMB 383.035 billion, the interest incurred from personal loans reached RMB 25.801 billion, with an YOY growth of 18.89%; the net retail income around the year exceeded RMB 30 billion, presenting an YOY growth of 11.83% and accounting for 20% of all business incomes of IB. The function of “anchor” and “security pad” was further seen.
Next, IB will have deep cooperation with top-ranking big data platforms and Internet companies in China. Relying on more sophisticated anti-fraud means and risk control models, IB will further expand the client base of “Xing Flash Loan”, fulfill the demands of people for fast consumption loans to the maximum, fully exert the fundamental and key function of household consumption in economic growth and industrial transformation, and boost the national structural reform of supply side.