Shenzhen, China, Nov. 16, 2022 (GLOBE NEWSWIRE) — As digital transformation rapidly advances across the globe, fintech has gained strong momentum as a disruptive innovation force in recent years. Unlike in Europe and America, the development of fintech in emerging markets such as China, India and Southeast Asia shows distinctive characteristics, which have received increasing attention.
One of the manifestations is the growing power of fintech institutions represented by banks.
Globally, commercial banks have always been the most important force in leading reforms in traditional financing activities. Although emerging economies lag behind in the financial industry, they are willing to commit to building their digital power. Taking mainland China as an example, a number of commercial banks with strong technological capabilities have navigated their digital transformation, exporting their fintech capabilities through technical subsidiaries as part of efforts to expand their customer base and achieve stronger business advantages in the new industry . finance cooperation ecology.
All over the world, fintech production and the innovative collaborative mode used by commercial banks in emerging markets have made people reflect on the definition of fintech.
It is noteworthy that since 2022, CMBYC, a fintech subsidiary with a banking background, has been frequently featured by many top Chinese and American media, offering an interesting and thought-provoking case.
Headquartered in Shenzhen, China’s financial center as well as science and technology innovation center, CMBYC is a fintech subsidiary of the world-renowned commercial bank, China Merchants Bank. In July 2022, the authoritative financial media The banker launched its Top 1000 World Banks by Tier 1 2022, in which China Merchants Bank ranked 11. This is the 5th year in a row that CMB has been listed in the top 20 in this ranking.
As a unified platform for exporting China Merchants Bank’s financial technology, CMBYC bridges enterprises and financial institutions using scenario finance by providing fully digital solutions for capital and cash flow management. Its innovative “Industry-Finance Scenarized Connection” model redefines the relationship between financial institutions and companies, providing a new Chinese solution for global bankers to remove information asymmetry between enterprises and financial institutions and facilitate the accurate connection between financial needs of enterprises and financial service provision. of banks.
Specifically, financial technology refers to technology-driven innovation in financing activities. Financial services involve both financial institutions and businesses. In Europe and America, fintech is mainly used by the service side of financial institutions such as insurance, payment, investment advice and banking. Meanwhile, CMBYC enriched the connotation of financial technology, innovatively applying fintech to the capital flow management scenario of businesses, rather than limited to financial institutions. In fact, companies often have to engage with banks in the internal capital flow scenarios such as settlement management, account management, investment and financing management, cost control and risk management. In addition, CMB has a deep tradition and deep accumulation in digital business services. In 2017, CMB proposed to build a “fintech bank”, making it one of the initiators of this strategy in the Chinese banking industry; as early as 2007, it launched CBS and other cloud-based treasury management products, gaining recognition from many medium and large group enterprises in China. As a fintech subsidiary with a banking background, compared to general software companies, CMBYC has inherent strengths in pursuing and leveraging advantages in both technology and finance.
According to CMBYC insiders, the company applied fintech to digital business services because of the distinctive Chinese market environment. In the United States and Europe, where the financial industry has fully developed, the commercial credit system and the protection mechanism for information security are well established. Therefore, instead of building up fintech capabilities independently, it is easier for commercial banks to cut their efforts in R&D by purchasing services from professional fintech companies. Therefore, some analysts argue that, supported by professional financial division of labor and credit insurance, European and American commercial banks do not have a strong motive to export their fintech capabilities.
In contrast, in emerging economies such as China, commercial banks are willing to commit more attention and resources to building their fintech capabilities and independently developed information systems. From the demand side, which is no longer limited by traditional technology, emerging economies have gained strong momentum in the digital economy in recent years. In China, the central government has incorporated the concept of enterprise digitalization into many policy documents as an important direction for enterprise transformation and upgrading. Furthermore, as emerging economies still have a long way to go to perfect the traditional credit system, and it remains difficult for businesses to access financing and for banks to trickle down financial services precisely to businesses most in need, and realizing credit improvement by means of digitization based on the data value of business management scenarios has become their best choice to establish a new commercial credit system.
Focusing on the business capital flow scenario, CMBYC has built a new ‘Industry-finance Scenarized Connection’ model. It has opened the closed loop of scenario data for corporate capital flow via digital means to upgrade scenario data; meanwhile, advanced technical tools such as Big Data, artificial intelligence, cloud computing, etc. are used to help enterprises dredge and augment their scenario data, thereby building a scenario-based digital bridge between enterprises and financial institutions, and helping manufacturers become more intelligent in business and enable financial institutions to serve them better. This model effectively breaks the information asymmetry between companies and banks, and is a typical case of using financial technology to realize credit improvement through digitization.
The meaning of “Fintech= Financial + Technology” can be expanded further. Fintech in emerging markets is no longer limited to traditional financial scenarios. Companies like CMBYC using fintech in corporate capital flow management scenarios have sparked new inspirations for the development of global fintech.
About CMBYC:
CMB YUANCHUANG Information Technology Co., Ltd. (CMBYC) was established in 2016. CMBYC headquarters is located in Shenzhen, China. CMBYC is unique from many other fintech companies with a banking background because this fintech company offers endeavors with digital solutions and services such as treasury management, scenario cost control frameworks and integrated business tools for monetary analysis.
If you would like to know more about CMBYC, please send an email.
Email: [email protected]
Contact person: Mr. He
Website:
Phone: 0086+400-806-7955
Disclaimer:
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