China CITIC Bank: A typical sample of sticking to "temperature" to nourish SMEs

time:2022-12-09 11:09:34source:chakarski.com author:Market analysis
China CITIC Bank: A typical sample of sticking to "temperature" to nourish SMEs

In 2022, when "the situation is changing", how to stand firm in the face of adversity is an important issue for all walks of life to think about. In particular, small and micro enterprises, which are an important part of the real economy, have been hit hard. It is the banking industry's responsibility to support small and micro enterprises to survive the "cold spring" and make them feel the "temperature" of financial services. Just as China CITIC Bank has always emphasized the concept of "warmth" - "let wealth be warm", from blood transfusion to hematopoiesis, from support to standing, it injects financial "living water" into small and medium-sized enterprises. For a company, a forward-looking development strategy is like the lifeblood of the company, leading all businesses to move forward bravely. As the famous American management scientists Joel Ross and Michael Cammy said, a company without a strategy is like a ship without a rudder, which will only turn in circles and be homeless like a homeless person. The banking industry, the most important link in the financial system, knows it well. Taking China CITIC Bank as an example, looking at the bank's development strategy in recent years, the word "temperature" runs through it. As early as 2017, China CITIC Bank first proposed "building a warm bank" in its annual report. Today, China CITIC Bank once again shouted the slogan "Make wealth warm", which is not only a slogan, but also a " "There is temperature" permeates all businesses of the bank. In the small and micro financial business, China CITIC Bank, under the leadership of the proposition of "making wealth warm", leverages its comprehensive financial service capabilities and group synergy advantages to meet the asset allocation and diversified financing needs of small and medium-sized enterprises in different periods. Warmth—Let wealth be warm In the competition of the giants in the banking industry, differentiation has become the only way for banks to transform. According to McKinsey's continuous observation of China's banking industry, scale-leading banks in the local market, distinctive banks with differentiated positioning, and transformational pioneer banks that actively promote business model changes are leading the way in value creation. Among them, characteristic banks with differentiated positioning are impressively listed, which means that walking out a characteristic road has gradually become one of the magic weapons for banks to win. In this process, the development strategy of keeping pace with the times acts as a wind vane, prompting the bank to go further and further on the road of distinctiveness. Taking China CITIC Bank as an example, driven by financial technology and consumption concepts, the bank has gradually changed from "product-centric" to "customer-centric", and delivering "warmth" to customers has gradually played a pivotal role in China CITIC Bank. Under the current macro environment, how to demonstrate value resilience through cycles is a crucial issue for China CITIC Bank. In this context, China CITIC Bank once again put forward the brand proposition of "Let Wealth Have Warmth" on the basis of "A Bank with Warmth", combining "warmth" with "wealth", adhering to the principle of "altruism and win-win", and becoming the leader in creating differentiated A tool for competitive advantage. From this, it is not difficult to see that "making wealth warm" is of great importance to China CITIC Bank, and it is also of great significance to customers and society. On the one hand, for the society, "Let Wealth Have Warmth" reflects China CITIC Bank's responsibility to serve the real economy and social responsibility, demonstrate the responsibility of state-owned banks, adhere to the mission of state-owned financial enterprises, actively integrate into the overall situation of national development, nourish the economic body with financial blood, and practice Carry out "CITIC Responsibility". On the other hand, making wealth warm is further penetrated into major business sectors, implementing customer-centricity from the inside out, practicing the concept of one customer, one CITIC account, and satisfying customer asset allocation diversification and financing. Diversified needs, cross-market financial portfolio innovation and other needs. Comprehensive financial service capabilities + group synergy advantages Laying the foundation to support China CITIC Bank's concept of "making wealth warm" is the comprehensive financial service capabilities and the synergistic advantages of the group. The first to mention is the comprehensive financial service capability. That is to use the financial resources of commercial bank + investment bank, on-balance sheet + off-balance sheet, local currency + foreign currency, domestic + overseas, and the bank + subsidiary to provide customers with a full-chain, full-cycle, all-round package of comprehensive financial solutions. As early as 2018, China CITIC Bank proposed to gradually transform from "one body and two wings" to "three equals". The three major business segments complement and support each other. Through the comprehensive linkage of business lines, businesses, customers, products and internal and external resources, the comprehensive financial service capabilities of the whole chain for customers are formed, and a value system of 1+1+1>3 is created. . Of course, the synergy of China CITIC Bank is not limited to within the bank. Group synergy also plays a key role. Backed by the big tree of CITIC Group, China CITIC Bank provides customers with a full range of financial services based on the advantages of various business segments of CITIC Group. This is inseparable from the full license of CITIC Group. In July of this year, CITIC Financial Holdings was officially established, bringing CITIC's synergistic advantages to a new level. At present, CITIC Financial Holdings has held equity interests in financial institutions such as China CITIC Bank, CITIC Securities, and CITIC-Prudential Life Insurance. It will guide all financial subsidiaries to focus more on the sharing and mutual recommendation of three types of customers: government, enterprise and individual. New breakthroughs in collaboration were achieved in the four major areas of custody and non-performing disposal. It can be more intuitively reflected from the data. In the first half of this year, China CITIC Bank, as the main platform for group collaboration, relying on the synergy advantages of CITIC Group, customized comprehensive financial service solutions for strategic customers. As of the end of June this year, both the loan balance and deposit balance of strategic customers achieved steady growth, of which the loan balance was 7726.19 100 million yuan, an increase of 5.18% over the end of the previous year, and the average daily balance of deposits was 1.3 trillion yuan, an increase of 3.16% over the same period of the previous year. However, it is worth noting that there are many small and medium-sized enterprises in the strategic customer industry chain. These enterprises are small in scale and have no fixed assets available for mortgage, so they cannot meet the traditional credit conditions of banks. In response to this pain point, a new round of development strategies of China CITIC Bank followed. Three core competencies to escort small and micro enterprises Small and micro enterprises are the most basic and smallest cells in the real economy, just like capillaries, which means that small and micro enterprises play a key role in the real economy. At present, increasing support for small and micro enterprises has become a key word of national policy. As a "pioneer" in advocating "warm" financial services, China CITIC Bank has injected financial "living water" into small and micro enterprises. In October last year, China CITIC Bank launched the "Top 342 Nuclear Action", in which the number "3" represents the three cores of wealth management, asset management and comprehensive financing, which means that the bank has fully launched the construction of the three core capabilities as the main line. A new round of development. These three core capabilities enable SME customers to obtain solutions that match their needs at all stages of the life cycle, escorting their sustainable development. Among them, the new model of supply chain financing is a typical case. Recently, China CITIC Bank released the transaction + 2.0 ecosystem, focusing on the core enterprise industry chain, continuously improving the breadth and depth of financial services for small and medium-sized enterprises, and was included in the "2022 Ecological Brand Development Report". As we all know, an enterprise is not a single individual, it has both upstream and downstream customers, and the “warm” financial services run through it will help the enterprise to revitalize the assets and resources accumulated in itself and the supply chain, and build supply chain finance ecology. Just like this, China CITIC Bank has formed a supply chain product system relying on core enterprises, along the upstream, midstream and downstream of the supply chain, and centered on asset pools, to provide corporate customers with comprehensive financial service solutions. In April of this year, China CITIC Bank pioneered the "cluster asset pool" product in the industry. Based on the credit of the enterprise, it can issue a bank note for the supplier to handle the pledge of accounts receivable online, realize the efficient transmission of the credit of the core enterprise, and accurately irrigate the upstream small and medium-sized customers. group. China CITIC Bank continues to accelerate its "staking" in supply chain finance. It has continuously launched a series of online transaction financing products such as Xin e-finance, Xin e-chain, and Xin e-pool to meet the financing needs of various enterprises. For example, relying on China CITIC Bank’s “credit e-chain products without credit, online fast loans”, as of the end of June 2022, it has provided more than 350 factoring financing services for 10 subsidiaries and 64 suppliers with a total value of 310 million yuan. Not only that, China CITIC Bank has also built a smart supply chain platform, through the analysis of core enterprises, upstream and downstream elements, and abstraction to form a symbol system, combined with various data such as industry, industry and commerce, finance, credit reporting, etc., to realize the overall and single supply chain. Digital risk identification, product recommendation, marketing opportunities, intelligent early warning and processing, etc. Looking back on its development history, China CITIC Bank has always adhered to its original intention of serving the real economy and kept pace with the times. Looking forward to the future journey, China CITIC Bank will provide customers with all-round experience with "warm" services, gather internal development forces with "warm" management, and build a "value bank" worthy of entrusting the future with a "warm" brand.
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