Banking cross-border financial services continue to innovate

Source: Financial Times by Zhao Meng

Recently, the fourth CiIE came to a successful conclusion, once again presenting an impressive report card to the world. On a one-year basis, this year’s CIIE has a cumulative turnover of US $70.72 billion.

In order to serve exhibitors and purchasers at home and abroad, banking institutions continue to enrich and improve cross-border financial product systems, and create integrated cross-border financial services at home and abroad. It can be seen that the CIIE has not only become a centralized display platform for domestic and foreign commodities, but also a “display window” for deepening and innovating cross-border financial services of banking institutions.

In the first 10 months of this year, China’s total imports and exports rose 31.9 percent year on year, data from the General Administration of Customs showed. It can be seen that with the deepening of China’s high-level opening-up and steady growth of international trade, the cross-border financial business of the banking industry has entered the fast lane of development. Cross-border financial services represented by “one-stop”, “online” and “straight-through” are becoming more and more accessible and easy to use.

“Cross-border finance, which aims at serving a high level of opening-up, will surely embrace broader development space and prospects.” In an interview with the Financial Times, Zheng Chenyang, a postdoctoral fellow at the Bank of China Research Institute, said commercial banks need to continue to improve the quality and efficiency of cross-border financial services as global trade puts higher demands on cross-border financial services.

Product innovation is characteristic and precise enough

The reporter learned that there are a variety of cross-border financial segmentation products, but all of them are different from each other. They are all combined in the three basic services of “exchange”, “exchange” and “financing”. At this year’s CIIE, a number of Chinese banks launched tailored special financial service plans based on the actual needs of enterprises and made their own characteristics.

Summarize the experiences of former three-time services into the expo, the export-import bank this year will be plan to upgrade to version 4.0, called “Yi Hui global”, highlighting the four “easy”, namely “easy, easy to enjoy, easy to create, easy to league”, further embedding depth of the financial products and services to import scene, as the core of trade form of foreign trade field “point, line, face” all-round, multi-dimensional support system, It is highly suitable for the diversified and personalized needs of various enterprises.

Such financial services have proved desperately needed by businesses. According to reports, relying on the special financial service plan of “Jinborong 2020″ issued at the third CiIE, the Export-Import Bank of China has supported nearly 2,000 businesses of more than 300 customers, with a business balance of nearly 140 billion yuan, involving more than 40 countries and regions such as Singapore and Malaysia, driving more than 570 billion yuan of imports and exports.

Shanghai Pudong Development Bank will integrate digitalization, green and low-carbon, and scientific and technological innovation into the ciIE financial service system. In view of the procurement needs of the CiIF, we will further upgrade the online trade service function. We will open import letters of credit through online banking, without submitting paper application materials offline, and we can know the business progress in real time, which greatly improves efficiency.

Bank of China focuses on the deep integration of cross-border, education, sports and silver scene construction with ciIE services, integrates one-stop ecological scene construction resources, and creates a “finance + scene” model of “one-point access and panoramic response” with ciIE as the core, creating a new paradigm of ecological financial services.

Digital transformation of cross-border finance was accelerated

“By using the cross-border remittance function of GUANGfa Bank through the ‘single window’ of international trade, you can obtain customs information and trade background information with one click, which eliminates the tedious business handling process and makes the remittance efficient. The first transaction we did, from submission to bank review to final payment, took no more than half an hour.” China construction investment (Guangdong) international trade Co., LTD., said.

It is reported, in August this year, guangdong development bank and the General Administration of Customs (national port management office) signed an agreement to jointly promote the “single window” of international trade finance and insurance, service function construction in a greater degree to realize data information sharing, expand the financial services and innovation of science and technology application, to import and export enterprises to provide more high-quality and convenient services, promoting trade customs clearance facilitation.

It is worth mentioning that in the context of the continuing spread of the epidemic abroad, relevant enterprises are in urgent need of “no-contact” and “fast payment” cross-border financial services. Driven by peer competition and customer demand, commercial banks are accelerating the application of fintech achievements to realize the digital transformation and development of cross-border finance.

The “cross-border direct settlement service” in this year’s CIIE has attracted market attention. The reporter understands, the bank is “anti-money laundering and counter-terrorism financing, tax evasion”, on the basis of but by customer instructions directly to deal with cross-border direct local and foreign free trade account settlement, the common cross-border RMB settlement account and free trade account exchange is convenient, without the need for customers to submit other materials, more facilitation services.

Liu Xingya, deputy director of the Shanghai Headquarters of the People’s Bank of China, said financial institutions should improve their service plans and financial products based on the needs of exhibitors and buyers at home and abroad, and provide comprehensive and high-quality cross-border financial services for all parties of the CIIE.

Diversifying to meet cross-border financial demand

At present, some Chinese banks continue to consolidate their leading edge in cross-border financial services. According to the third quarterly report of Bank of China, it holds 41.2% of the market share in CIPS (RMB cross-border payment system), maintaining the first place in the market. The amount of cross-border RMB clearing was 464 trillion yuan, up 31.69% year on year, keeping the world’s leading figure.

Looking into the future, Zheng Chenyang believes that macroeconomic policy adjustment, changes in international trade structure, industrial structure transformation and upgrading and a series of factors determine the development direction of cross-border financial business. As a banking financial institution, only by continuously practicing internal skills can it gain opportunities in the construction of a new development pattern.

“Banking institutions must first firmly binary service new development pattern, make full use of two markets and two resources at home and abroad, grasp the opportunities for further deepening of opening to the outside world policy, domestic high positive preempted by free trade, free trade port, is in fair, Canton fair and clothing trade will provides a strong financial support and guarantee for the new platform, We will take the opportunity of regional economic and trade cooperation such as the Belt and Road Initiative and RCEP to optimize the layout of international business and deepen the development of cross-border business.” Zheng Chenyang said.

In addition, the outbreak of the epidemic has highlighted the advantages of the digital economy. Global trade is rapidly becoming digital and intelligent. For example, cross-border e-commerce has become a new driving force for trade growth. Interviewed experts agreed that the next step, the banking sector to increase investment in science and technology, the use of big data, chain blocks, such as financial technology, focusing on digital trade, cross-border business, online trading and other key areas, structures, cross-border financial online service platform and the scene, the online trade financing product innovation, the development of digital pratt & finance and financial supply chain, Enabling a new model of cross-border financial services through digitization.

Zheng Chenyang stressed that financial opening-up and cross-border financial services need to grasp the relationship between overall promotion and key breakthroughs. In recent years, a large bay area of guangdong and hainan free trade port area acceleration become a “window” of China’s opening to the outside world can match the corresponding financing for its Banks, trade and investment facilitation, the internationalisation of the renminbi cross-border financial services, such as promotion of innovative products, solid customer base, service experience.

Post time: Mar-23-2022