Shenzhen, China, Nov. 16, 2022 (GLOBE NEWSWIRE) — As digital transformation advances rapidly across the world, fintech has gained momentum as a disruptive force for innovation in recent years. Unlike Europe and America, the development of fintech in emerging markets such as China, India and Southeast Asia has distinctive characteristics, which are attracting increasing attention.
One manifestation is the rise of fintech institutions represented by banks.
Globally, commercial banks have always been the main driver of reforms in traditional finance activities. Although emerging economies are latecomers to the financial sector, they are ready to commit to building their digital power. Taking the example of the Chinese mainland, a number of commercial banks with strong technological capabilities have successfully completed their digital transformation and exported their fintech capabilities through technical subsidiaries as part of efforts to expand customer base and to gain stronger business advantages in the new sector. finance cooperation ecology.
Around the world, the production of fintech and the innovative mode of cooperation adopted by commercial banks in emerging markets have made people think about the definition of fintech.
It is noteworthy that since 2022, CMBYC, a fintech subsidiary with banking experience, has been frequently mentioned by many major Chinese and American media, providing an interesting and challenging case.
CMBYC, headquartered in Shenzhen, China’s financial hub as well as science and technology innovation hub, is a fintech subsidiary of world-renowned commercial bank, China Merchants Bank. In July 2022, authoritative financial media The banker released its Top 1000 World Banks by Tier 1 2022, in which China Merchants Bank ranked 11. This is the 5th consecutive year that CMB has been in the top 20 of this ranking.
As a unified platform for exporting China Merchants Bank’s financial technology, CMBYC connects businesses and financial institutions through scripted financing by providing comprehensive digital solutions for capital and cash flow management. Its innovative “Industry-Finance Scenarized Connection” model redefines the relationship between financial institutions and businesses, providing a new Chinese solution for global bankers to remove the information asymmetry between businesses and financial institutions and facilitate accurate connection. between the financial needs of businesses and the supply of financial services. banks.
More specifically, fintech refers to technology-driven innovation in finance activities. Financial services concern both financial institutions and businesses. In Europe and America, fintech is mainly applied by the service side of financial institutions such as insurance, payment, investment advisory and banking. Meanwhile, CMBYC has enriched the connotation of financial technology and innovatively applied fintech to the capital flow management scenario of enterprises, instead of being limited to financial institutions. In fact, companies often have to dialogue with banks when it comes to internal capital flow scenarios such as settlement management, account management, investment and funding management, cost control and risk management. Besides, CMB has a deep tradition and accumulation in enterprise digital services. In 2017, CMB proposed to build a “fintech bank”, which made it one of the initiators of this strategy in the Chinese banking industry; as early as 2007, it launched CBS and other cloud-based cash management products, gaining recognition from many medium and large enterprises in China. As a fintech subsidiary with a banking background, compared to general software companies, CMBYC has inherent strengths to advance and leverage both technological and financial advantages.
According to CMBYC insiders, the company has applied fintech to enterprise digital services due to the distinctive Chinese market environment. In the United States and Europe, where the financial industry has fully developed, the commercial credit system and the information security protection mechanism are well established. Therefore, instead of developing fintech capabilities independently, it is easier for commercial banks to reduce their R&D contribution by purchasing services from professional fintech companies. Thus, some analysts claim that, being supported by a professional economic division of labor and credit insurance, European and American commercial banks do not have a strong incentive to export their fintech capabilities.
In contrast, in emerging economies such as China, commercial banks are ready to devote more attention and resources to building their fintech capabilities and independently developed information systems. On the demand side, no longer constrained by traditional technology, emerging economies have gained strong momentum in the digital economy in recent years. In China, central authorities have incorporated the concept of enterprise digitalization into many policy documents as a major direction for enterprise transformation and upgrading. Moreover, given that emerging economies still have a long way to go in perfecting the traditional credit system and that it is still difficult for businesses to access finance and for banks to ensure that financial services precisely go to the companies that need it most, realizing credit enhancement in Data value-based digitization means of business management scenarios have become their best choice to establish a new business credit system.
Focusing on the business capital flow scenario, CMBYC has built a new model of “industry-finance scripted connection”. It opened the closed loop of enterprise capital flow scenario data through digital means to upgrade scenario data; meanwhile, advanced technical tools such as Big Data, Artificial Intelligence, Cloud Computing, etc. are applied 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 smarter in business and enabling financial institutions to better to serve. This model effectively breaks the information asymmetry between corporates and banks, and is a typical case of using fintech to achieve credit enhancement through digitalization.
The meaning of “Fintech = Financial + Technology” can be further expanded. Fintech in emerging markets is no longer limited to traditional financial scenarios. Companies like CMBYC applying fintech in enterprise capital flow management scenarios have sparked new inspirations for global fintech development.
CMB YUANCHUANG Information Technology Co.,Ltd. (CMBYC) was established in 2016. CMBYC headquarter is located in Shenzhen, China. CMBYC is unique compared to many other fintech companies with banking backgrounds because this fintech company provides digital solutions and services such as cash management, scripted cost control frameworks and management tools. integrated trade monetary analysis.
If you want to know more about CMBYC, you can send an email.
Contact person: Mr. He
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