Corporate Banking

Capital Pool

1. Interbank Cash Management Platform

*Product Definition

Interbank cash management platform: a new generation of inter-bank cash management platform combining our advantages and experiences in cash management to address enterprise group’s demand for comprehensive management of capital and financial assets.

*Service Types

Realize business modules including settlement of transactions, account management, liquidity management, internal capital transfer valuation, capital budget management and customization for capital data report, and standardized modules including internal credit management, internal account management and investment will be opened completely, thus effectively helping enterprises to achieve professional group financial assets management, strengthen ability on risk control ability, fully improve capital management of whole group and cost-effectiveness of funds.

*Service Advantages

(1) Inter-bank Account Management

By using account management module, the enterprises register and maintain bank account information of group and member organizations, thus “copying” the management structure of group into the system, and accurately reflect the multi-layer account management and authorization relation within a group. Through the account management function, the group can inquire and grasp the capital change and transaction status in member organizations’ account, and acquire necessary transaction data and element information timely.

(2) Capital Transfer Valuation

One of the major challenges on centralized management of group capital is how to balance the interests among member organizations. The system automatically calculates the accumulated number for funds deposited and loans borrowed by member organizations into and from the group, and settle on fixed expiry date for interest according to pre-set interest rate.

(3) Internal Account System

In the same time, by the establishment of internal account system, a platform for managing internal capital position is built. It allows the opening, use and management of internal account such as current, fixed, agreement and call deposits account.

(4) Internal Credit Management

By establishing the internal valuation system, more enterprises groups propose the function of internal credit, hoping to mimic the bank and set up a credit management system. It will establish internal credit reporting and rating system, create a scientific and safe management system for the use of group’s overall capital, thus realizing before, during and after loan information-based management for internal loan capitals.

(5) Capital Budget Management

The capital budget management is the premise for enterprises to strengthen financial control and implement refined capital management. A inter-bank capital management platform will help enterprises to build a comprehensive capital budget management system, customize budget accounting items of various enterprises groups, and construct multi-layer budget system. In the mean time, as an important function of financial assets management, the capital budget management helps enterprises to effectively control liquidity risk, forecast cash flow precisely, maintain and add value of capital.

(6) Payment Transaction and Management

A comprehensive and convenient payment, settlement and management function helps enterprises set authorization and approval procedure of payment transaction for various accounts in the system according to its demand on financial authorization and management, and exercise effective control in line with capital budget. The system supports various settlement methods including direct link payment, online payment and counter payment with bills.

(7) Report Statistics and Analysis

The report server provides powerful report management function for enterprises. Using advanced data warehouse technology, the system can make special statistics, analysis and forecast report, providing decision support for cash management.

*Applicable Scope

Group enterprises operating with group settlement center and having cooperation with several banks;

Large and medium sized group enterprises that have sound financial management rules, networked capital management and high demand for information-based management;

Enterprises and public institutions that have inter-bank capital management needs;

2. Bank-enterprise Direct Linkage

*Product Definition

IB bank-enterprise direct linkage: based on various functions of corporate internet banking, the Bank-enterprises direct linkage system links to the financial software or capital management software of the enterprises, so the financial staff of the enterprises can inquiry account information (balance, transaction details etc.) and make payment via its own financial software or capital management software, and need not to log in the Bank’s corporate internet banking. Up to now, the Bank has achieved bank-enterprise direct linkage to the mainstream financial software or capital management software used by most domestic enterprises, customers using these software can enjoy bank-enterprise direct linkage service of the Bank by upgrading relevant module of the product.

*Service Types

The IB bank-enterprise direct linkage provides basic function such as balance enquiry, enquiry about transaction statement, transfer and remittance, consignment collection, investment and wealth management, enquiry about transfer status, and funds aggregation, distribution, external payment , agency payment by finance companies etc; enterprises can also combine and control above basic functions in its financial software or capital management software to meet its special demand on financial management.

*Product Features

(1) Avoid repeated operation by financial staff in its own financial system and bank’s internet banking, reduce financial error;

(2) Save much manpower from enterprises’ financial function, and increase labor efficiency;

(3) Through bank-enterprise direct linkage, the financial system has direct access to bank account information, thus providing necessary data for various statements and decision support;

(4) By direct interaction between enterprises’ financial system and bank’s internet banking via data message, the bank-enterprise direct linkage avoids slow speed in viewing IE page with IE browser, and effectively increases the business processing speed.

(5) It provides rigorous exception handling mechanism which offers handling program for exceptions of the information interaction between enterprises’ financial system and the bank.

*Target Customers

Enterprises that already used capital management software or financial software, and hope to conduct banking operation directly with capital management software or financial software.

3. Bank-government Direct Linkage

As bank end product and service, the bank-government direct linkage provides agency centralized payment of treasury and collection of non-tax revenues to work with the establishment of government informatization and national financial and taxation system.

(1) Agency centralized payment of treasury

*Product Definition

Centralized payment of treasury: based on single account system of treasury and supported by sound financial payment information system and inter-bank real time settlement system, when budget organizations need to purchase goods or make the payment for labor service, upon application by the budget organization and review by the centralized payment department of treasury, the funds are transferred to the payee via single account system of treasury. The Bank can conduct agency centralized payment of treasury for financial departments at various levels, including the management of single account system of treasury, direct payment, authorized payment and capital settlement.

*Product Features

(1) The Bank can conduct agency centralized payment of treasury for financial departments at various levels, including central, provincial, municipal and country level;

(2) The qualification of agency centralized payment of treasury is the symbol of branches engaging in local mainstream business;

(3) By serving financial and budget organizations, the Bank strengthens the relationship with financial customers and the cooperation between bank and government;

(4) Taking agency centralized payment of treasury as an opportunity, the Bank actively works to open zero-balance account (basic account) for budget organization, and lays the foundation for marketing special account of budget organizations.

*Target Customers

Financial customers at various levels

4. Bank-finance Direct Linkage

*Product Definition

Bank-finance direct linkage: linking internal system of finance companies (financial system, ERP or capital management software) with business system of bank by internet or dedicated network. By login in its own system, finance companies can have direct access to business system of bank, manage and schedule its bank account and capital, and conduct information inquiry, transfer and payment and other operations. It therefore significantly improves the timeliness and convenience of transactions.

*Product Features

(1) Low cost: the software company of relevant group financial system or ERP system conducts development and joint debugging to the interface of the Bank. Generally, there are existing interfaces, thus incurring only fees for joint debugging and front-end processor.

(2) Quick move to operation: the customer signs bank-finance direct linkage agreement with the Bank, and the financial/ERP software company of the customer conducts development and joint debugging to the Bank’s interface, enabling the system to be put into operation. Short cycle, quick move to operation.

(3) High benefits: By providing capital management service to customer via bank-finance direct linkage, it shows that the Bank, as one of the cooperative banks recognized by the customer, gives access to the capital management of the customer, demonstrating deep cooperation between the Bank and the customer, which usually brings significant benefits.

5. Settlement Center

*Product Definition

By creating capital pool, enterprises make unified funds supervision and management to member organizations. The funds are aggregated and distributed within the group to regulate supply and demand.

*Product Features

(1) Low cost: the charges of group settlement center include two parts: annual service charge and settlement charge. Annual service charge: RMB 2,000 Yuan, and RMB 100 Yuan per year for every additional member of settlement center. Settlement charge: the same with settlement charge of corporate internet banking.

(2) Quick move to operation: As the master account of group opened corporate internet banking, its subordinated organizations will be registered under the master account as member organizations. 

(3) Easy to use: The enterprise customers can make unified funds supervision, management, distribution and aggregation to member organizations by simple operation on corporate internet banking.