A member of the Alibaba Group, the Ant Group (Formerly Ant Financial), has had its digital bank, MYbank, made an announcement. This announcement was in regards to a five-year plan it had launched in order to reach a larger range of small and micro enterprises, or SMEs, across China as a whole. This will be done through rural lending as well as supply chain finance.
Five Years of SME Prioritization
This five-year plan went into detail in regard to the aspirations of MYbank to work alongside partners from multiple sectors. All of this comes in a bed to serve SMEs across China as a whole.
MYbank explained that it would implement a range of initiatives and measures as part of this new plan. These include the use of supply chain finance in order to support 10 million SMEs, as well as working with 2,000 village and county managers to enact rural lending. Another crucial part of the plan is the distribution of 300 billion RMB through financial institution partners as interest-free business loan vouchers. This will come alongside the addition of 40 million underbanked female business owners to their customer roster.
The Mandatory Public Statement
Xiaolong Jin stands as the president of MYbank, and gave a statement about the matter at large. Jin stated that the company was eager to work with even more financial institution partners through the realization of this five-year plan. This was all in order to realize MYbank’s vision to create a financial services space that offers greater accessibility to SMEs at large, according to Jin.
Jin explained that before this plan, SMEs had only one choice as to how they should apply for lending services by MYbank: A one-way application approval process. However, Jin stated that those same services could be seamlessly embedded into rural lending and supply chain finance use cases, with the help of the company’s partners. With this, Jin stated that MYbank hopes to push its services to all spectrums of industry’s SMEs all across China.
Pioneers In Chinese Banking
MYbank stands as a private online commercial bank in China, having been established on the 25th of June, 2015. MYbank had specialized in serving farmers and SMEs, and was the first bank in China to develop an entire core banking system on the cloud, without any physical branches to speak of.
Through the use of the AI, risk management, and computing technologies of Ant Group, MyBank has managed to stand as a pioneer for SME financing through the “310 model”. This offers collateral-free business loans that take less than three minutes to apply for. These loans can be applied for on mobile, and have zero human intervention requirements, and only needs less than a single second to be approved.