The Central Financial Work Conference has emphasized the importance of excelling in Techfin, Green Banking, Inclusive Finance, Pension Finance, and Digital Finance, providing a clear direction for promoting high-quality financial development. On May 9, 2024, the National Financial Regulatory Administration issued the Guidelines on Excelling in the “Five Major Areas” in Banking and Insurance, outlining specific requirements for achieving excellence in these areas.
As a domestically systemically important bank, CIB has always transformed “major national concerns” into “key institutional tasks,” firmly targeting the goal of building a financial powerhouse. CIB unwaveringly adheres to the path of financial development with Chinese characteristics, integrating the excellence of the “Five Major Areas” with the promotion of the “Three Pillars of Our Businesses,” the layout of the “Five New Tracks,” and the creation of “digital CIB.” This holistic approach positions CIB as a key player in serving the real economy and a stabilizing force in maintaining financial stability, actively crafting the “CIB Answer” for high-quality financial development.
Strengthening Techfin
Fueling the Development of New Quality Productive Force
Specialty enzymes are often regarded as the upstream “chips” of the biopharmaceutical industry. “During the initial stages of R&D, we had almost zero income, making it difficult to secure loans under traditional credit requirements. Even after generating revenue, our loan applications were repeatedly denied,” said Yang Guangyu, founder of Wuhan Hzyme Biotech Co., Ltd., a company primarily engaged in the R&D and production of core raw material enzymes and coenzymes for in vitro diagnostics (IVD).
Amidst Yang Guangyu’s uncertainty, CIB’s East Lake High-Tech Branch in Wuhan identified that Hzyme Biotech’s financing needs aligned perfectly with the bank’s “Technology Flow” credit evaluation system. This system evaluates enterprises across 15 dimensions, including invention patents, research teams, and technological advantages, providing a “precise profile” of the company’s technological innovation capabilities, thereby transforming “technology flow” into “capital flow.” After multiple visits and assessments, CIB adopted an equity-debt linkage approach to “promptly support” the construction of Hzyme Biotech’s R&D and production base. “CIB provided a three-year financing service in one go, acting as a ‘timely rain’ for our rapid development,” said Yang Guangyu. In just a few years, Hzyme Biotech established the nation’s largest high-quality proteinase K production line, securing the top market share in China.
Technological innovation is the core element of developing new quality productive force. In recent years, CIB has “accelerated” its support for technological innovation and the cultivation of new quality productive force through the “Technology Flow” credit evaluation system. By the end of 2023, CIB had approved over 2 trillion RMB in credit through the “Technology Flow” system, with more than 600 billion RMB already disbursed across various financing types.
CIB continuously iterates and upgrades its Techfin service system to meet the diverse financial service needs at different stages of a company’s lifecycle. This involves offering comprehensive, multi-faceted service solutions that integrate “online + offline,” “commercial banking + investment banking,” and “financial + non-financial” support. By the end of 2023, CIB had 159,600 Techfin customers, a 30.61% increase from the beginning of the year. The balance of Techfin loans reached 827 billion RMB, a 27.84% increase from the beginning of the year. Notably, CIB ranked first among joint-stock banks in the loan balances for Specialized and Sophisticated enterprises, technology-based SMEs, and long-term loans for high-tech manufacturing industries.
Technological innovation is a systematic endeavor that requires a well-constructed Techfin ecosystem to thrive. CIB is dedicated to fostering this ecosystem by deepening collaboration with various levels of government technology departments, establishing multi-party coordination mechanisms, and leveraging policies such as Techfin risk compensation, special interest subsidies, and shared risk initiatives between government and banks. CIB actively collaborates with guarantee companies and insurance companies to expand financing services for small and micro-tech enterprises. Additionally, CIB has established strategic cooperative alliances with nearly 100 venture capital institutions and stock exchanges to support quality tech enterprises, such as Specialized and Sophisticated enterprises, in entering the capital market.
At the institutional level, CIB has set up a Techfin leadership group led by the “top executive” at the head office. Focusing on national industrial layout and regional tech resources, CIB has designated 19 key Techfin branches and expanded its tech sub-branches. A dedicated review and approval mechanism for tech innovations has been implemented to create a coordinated service system across the front, middle, and back offices, providing robust support for the development of Techfin.
Deepening Green Banking
In Efforts to Build Beautiful China
Industrial parks are critical to China’s economic transformation and upgrading. The creation of zero-carbon industrial parks is evolving from scattered “zero-carbon” units to a comprehensive “zero-carbon economy” development blueprint.
“With the support of CIB’s green financing, our photovoltaic power station construction has progressed smoothly and is now connected to the grid, reducing carbon dioxide emissions by 9,800 tons annually,” said a representative of the Fuzhou Caimao City Industrial Park. CIB has provided professional green financial service solutions throughout the process, actively supporting the park in its phased energy-saving and green transformation efforts, ultimately making it the first “zero-carbon industrial park” in Fuzhou.
Green is the cornerstone of high-quality development, and new quality productive force equates to green productivity. As a leader in Green Banking, CIB is dedicated to aligning with the dual-carbon strategy, seamlessly integrating green finance with transition finance. The bank supports the green transformation and upgrading of traditional industries and the growth of emerging green industries, contributing to the acceleration of green productivity and the comprehensive construction of a Beautiful China. By the end of 2023, CIB had provided customers with green financing totaling 1.89 trillion RMB, a 16.14% increase from the previous year, with green loans for the clean energy industry reaching 174.238 billion RMB, a more than 30% increase from the previous year.
In Changchun, a major industrial city in the north, a local steel company undertook a series of green upgrades, including waste heat recovery power generation, flue gas desulfurization, and dust removal projects, leading to increased financial pressure. To support the company’s waste heat recovery power generation project, CIB promptly customized a comprehensive green financial solution, providing a 220 million RMB green loan. Once operational, the project is expected to reduce industrial carbon dioxide emissions by 1 million tons annually, aiding the company’s green transformation. By the end of 2023, CIB had provided 132.1 billion RMB in financing for the low-carbon transformation of high-carbon industries such as petrochemicals and steel.
Crafting an impactful Green Banking strategy requires a robust and comprehensive green financial product and service system. In recent years, CIB has focused on promoting “carbon reduction, pollution control, greening, and growth,” continuously deepening supply-side structural reforms in Green Banking. This has resulted in a diversified and comprehensive green financial service system that includes green loans, green bonds, green trusts, green leasing, green funds, and green wealth management. By the end of 2023, the combined balance of green leasing, green trusts, and green funds reached 99 billion RMB, a 16.89% increase from the previous year.
In the carbon finance sector, CIB has actively participated in the construction of the national carbon market, continuously improving the carbon financial service system, and strengthening the professional services of the CIB Carbon Finance Research Institute. The bank launched its self-developed “dual carbon” management platform and introduced carbon finance services based on corporate carbon accounts. By the end of 2023, CIB’s green financing balance in the “carbon reduction” sector reached 1.06 trillion RMB. The bank had created “carbon accounts” for over 1,700 corporate customers and opened 160,000 personal carbon accounts.
As China’s green development enters a new stage, CIB has positioned ESG as a crucial tool for implementing the dual-carbon strategy and promoting sustainable development. The bank has deeply embedded ESG principles into its development strategy and operational tactics, establishing an ESG and climate risk management system. By converting its leading advantages into differentiated service capabilities, CIB assists customers in building ESG management systems, enhancing information disclosure, and improving ESG performance. This collaborative effort boosts the sustainable development capabilities of both the bank and its clients. In 2023, CIB’s MSCI ESG rating was upgraded to AA, making it the only bank in China to receive the highest rating for five consecutive years.
Promoting Inclusive Finance
Empowering Thousands of Enterprises
“In the past, businesses had to seek out policies and products. Now, financial delegates bring policies and products directly to enterprises, conveying warmth and closing the distance,” said a business leader who attended a CIB business matchmaking meeting.
This year, CIB swiftly launched the “Inclusive Finance Promotion Month” initiative. Through financial delegates, the bank has extended inclusive finance services by bringing policy explanations and products directly to enterprises, aiming to bridge the “last mile” of financial services. Currently, the bank has appointed over 900 financial delegates.
In August last year, CIB introduced the Industrial Bank’s Financial Delegate Work System, inspired by the technology delegate system, and promoted a new model of “Financial Delegate + Technology Delegate” for rural revitalization in Fujian. Financial delegates, in conjunction with technology delegates, work to understand and serve rural areas, supporting agriculture and assisting farmers. This model fosters a collaborative business approach between government, banks, and enterprises, ensuring financial resources reach rural areas directly.
Wholesale agricultural markets connect both the “vegetable basket” of urban residents and the “money bags” of farmers. Leveraging its fintech strengths, CIB has addressed the low informatization and outdated operational management models of wholesale agricultural markets by developing the “Non-Financial System + Financial Services” industry solution. In September 2022, the bank launched the “CIB Inclusive Finance·Smart Agricultural Wholesale System,” which has since connected 320 agricultural wholesale markets with a total financing balance of over 18 billion RMB.
In the digital era, the rapid iteration of technologies such as the internet, big data, and the Internet of Things has opened new paths for making financial services more “inclusive” and “beneficial”. CIB is accelerating its digital transformation, focusing on “online product offerings” and “digitalized scenarios” to connect diverse scenarios and build a new model of digital inclusive finance services. Currently, the bank’s online financing balance stands at nearly 90 billion RMB.
Notably, CIB adheres to the philosophy of “open sharing and connecting everything” in constructing and operating the “CIB Inclusive Finance” open service platform. By enhancing technological leadership and data empowerment, the platform focuses on providing comprehensive “financial + non-financial” services to SMEs, centered around financing services. To date, the CIB Inclusive Finance platform has registered 24,900 users and addressed financing needs totaling 301.5 billion RMB.
“In the past, we had to mortgage houses or land rights to obtain loans. With CIB’s ‘Living Asset Pledge Loan,’ even dairy cows can be used as collateral,” said the head of Fujian Jian’ou Fuya Forage and Feed Co., Ltd.
This innovative service relies on CIB’s “Digital Biological Asset Management Platform.” This platform uses IoT, blockchain, and AI technologies to intelligently inventory various biological species and farming scenarios, empowering the bank’s post-loan management with digital tools. By doing so, CIB has created biological asset pledge financing products, addressing the financing difficulties and high costs faced by breeding enterprises. Currently, CIB has processed over 1.1 billion RMB in living asset pledge loans in Shandong, Jilin, Shanxi, Fujian, and Hubei, achieving significant social benefits.
CIB not only focuses on “enabling” and “facilitating” loans but also strives to ensure “willingness” and “courage” to lend. The bank has established inclusive finance assessment indicators, strengthened the construction of dedicated review and approval teams, implemented a due diligence exemption mechanism, and provided special pricing subsidies for inclusive loans. These measures continuously stimulate internal motivation and enhance the coverage, accessibility, and satisfaction of financial services. By the end of 2023, CIB’s balance of inclusive small and micro loans exceeded 500 billion RMB, a 23.95% increase from the previous year, with an average annual interest rate of newly issued inclusive small and micro loans at 3.87%.
Enhancing Pension Finance
Navigating the Silver Economy
Shanghai, the earliest city in China to enter an aging society, is also the largest city with the highest degree of aging. To address population aging, CIB’s Shanghai Branch has established 78 “Elderly Care Communities” in collaboration with seven streets and 71 neighborhood committees around its 59 comprehensive branches and 19 community branches, covering all 16 districts of Shanghai. The bank also boasts 24 “Elderly Service Demonstration Sites” certified by the Shanghai Banking Association.
A series of data points not only illustrate the warmth of CIB’s financial services but also highlight the accessibility of its pension finance services. As a forerunner in pension finance, CIB launched the comprehensive pension finance service plan “Elderly Bliss Life” in 2012. After more than a decade of dedicated efforts, the bank has established a comprehensive pension finance service system encompassing pension finance, elderly service finance, and elderly industry finance, creating the “Elderly Bliss Life” ecosystem. Currently, CIB serves over 24 million elderly customers.
Personal pensions, as the “third pillar” of the pension insurance system, are an essential component of pension finance. As one of the first commercial banks qualified to offer personal pension services, CIB provides end-to-end support, from “accounts” to “products,” and further to “planning” and “services.” Currently, CIB serves over 4.3 million personal pension customers, covering pension savings, funds, wealth management, and insurance, with the number of personal pension accounts and products ranking among the top in the industry.
In the field of elderly service finance, CIB has built the “Elderly Bliss Life” one-stop pension finance service system, supported by “pension security, compensation planning, value-added benefits, and activity platforms.” The bank continuously enriches its pension finance product offerings, carefully designs value-added services for elderly customers, actively creates age-friendly environments, and builds activity platforms for elderly customers, fostering a social atmosphere of respect and care for the elderly.
In Chengdu, CIB’s Chengdu Branch has partnered with Seniors University of Chengdu to co-establish the Qingyang Campus of Seniors University of Chengdu. They have jointly created the “Elderly Bliss School,” bringing the elderly university into communities and solving the problem of limited enrollment slots. This initiative has pioneered the “finance + education” model nationwide.
As China’s aging process accelerates, the silver economy related to elderly services will become a new growth point. Focusing on key elderly industries, CIB has developed comprehensive financial service solutions for the elderly industry. The bank effectively integrates group resources and utilizes a range of investment and financing tools, including credit, bonds, industrial funds, merger and acquisition loans, and REITs, to support the transformation and upgrading of the elderly industry, turning “sunset industries” into “sunrise industries.”
Using finance as a linkage, CIB actively fosters an pension finance ecosystem by strengthening cooperation with governments, medical and elderly care institutions, industrial enterprises, and financial peers to meet the diverse needs of the elderly population. For nine consecutive years, CIB has conducted the “Respect for the Elderly Month” nationwide, with 13 branches standing out in the second and third “National Respect for the Elderly Civilization” activities, earning the national “Respect for the Elderly Civilization” honorary title. This makes CIB the commercial bank with the most honors in this category.
Exploring Digital Finance
Crafting the ‘CIB Model’ of Digital Transformation
At the 7th Digital China Summit, the CIB exhibition hall was abuzz with technological innovations themed around “Data Elements and New Quality Productive Force.” Leveraging CIB’s satellite remote sensing application system, the “Planting Flow” model can not only calculate tea plantation areas and estimate yields but also monitor growth risks and identify tea pests and diseases, safeguarding tea harvests. This precise profiling provides convenient financing support to tea farmers.
The “new data” introduced by satellite remote sensing has been applied in CIB’s agricultural, forestry, and new energy project constructions, addressing traditional agricultural financing challenges such as lack of collateral and difficulty in asset valuation. This exploration has helped create the “Digital CIB” model for financial services in rural revitalization. In 2023, CIB’s “Satellite Remote Sensing Application Empowering Financial Services” project won second place in the Asia-Pacific region in Gartner’s “2023 Eye on Innovation Awards for Financial Services.”
This innovative digital landscape is a vivid reflection of CIB’s comprehensive and accelerated digital transformation. In recent years, CIB has closely followed the construction steps of Digital Fujian and Digital China, adhering to the basic strategy of “Technology-driven Banking.” The bank views digital transformation as a battle for survival, promoting mindset shifts, reforms, increased investment, talent strengthening, foundational support, platform building, scenario creation, and ecosystem expansion. CIB actively strives to “build the capability to connect everything and become the best ecosystem-empowered bank,” tackling the challenges of high-quality development with precision and exploring new digital financial service ecosystems. In 2023, CIB invested 8.398 billion RMB in technology, a 72.73% increase from the beginning of 2021, and expanded its tech talent team to 7,828 people, a 235.82% increase from the beginning of 2021, making up 13.91% of the bank’s total employees.
In terms of organizational structure, CIB has evolved from a “one committee, one department, one company” model to the current “one committee, four departments, one institute, two companies” configuration. This includes the Digital Transformation Committee, Technology Management Department, Data Management Department, Digital Operations Department, Security Department, Fintech Research Institute, CIB Fintech Company, and CIB Inclusive Finance Technology Company.
In terms of operational system, CIB is accelerating its transition from “Branch CIB” to “Digital CIB.” The bank has initially established a comprehensive “Digital CIB” system encompassing“1 (Mobile Banking) + 5 (CIB Inclusive Finance, CIB Butler, CIB Life, Money Manager, CIB Platform for Integrated Banking) + N (various scenario ecosystems).” Concurrently, CIB actively promotes scenario ecosystem construction, continuously integrating into various ecological scenarios to deepen the fusion of Digital CIB and the real economy. The bank has opened nearly 2,000 API interfaces, covering nearly 9,000 institutions. The E-CNY product system has been upgraded, with nearly 7 million CIB Wallets opened and over 120 small and medium banks signed up for tier 2.5 services.
While integrating financial services into more production and life scenarios, CIB is also solidifying its digital foundation. Adhering to an “enterprise-level, standardized” methodology, the bank drives the reshaping of business architecture and enterprise architecture, advancing the “five standardizations” of processes, data, models, development, and operations. This has led to the completion of the main construction of the “Five Major Enterprise Architecture Projects.” In line with the “East-Data-West-Computing” strategy, CIB has implemented computing power plans in Shanghai, Fuzhou, and Guizhou, gradually expanding computing power supply and accelerating the “cloud transformation” of infrastructure. By seizing data opportunities, CIB has initially built a corporate data dictionary standard with 21,000 entries and launched the large model product ChatCIB, effectively using technological power to drive transformation and empower high-quality economic and social development.