ICBC has recently launched online supply chain financing for FAW Volkswagen and issued the first dealer loan, providing a new financing channel for FAW Volkswagen dealers across the country. This is another successful attempt by ICBC in upgrading and transforming traditional supply chains through information technology, which has effectively enhanced the service capability of the Bank in small enterprise online financing.
To address issues such as complicated procedure, low efficiency and risk management difficulties of traditional offline auto supply chain financing, ICBC has worked with automobile companies, set the online financing limit for dealers based on order data recorded in the system and took measures including online tracking of vehicle information, electronic checking of trade backgrounds and automatic system verification to achieve one-touch loan for online financing.
An official with ICBC said that this model of online auto supply chain financing mainly has three characteristics. First, the online auto supply chain financing mode provides the dealers with the one-stop service including online application, online signing, online withdrawal and online repayment, which has simplified process and reduced management cost. In addition, manual engagement in business processing is reduced by 60% versus the traditional offline mode. Second, based on the data openness of automobile Group, the vehicle order information can be tracked to ensure the authenticity of trade backgrounds. Meanwhile, the risk monitoring model is used for monitoring, which can improve the timeliness and accuracy of risk control and prevent financing risk. Third, during online supply chain financing, customers can enjoy financing application and cash withdrawal through online banking without providing paper materials, which enhances the user experience.