Shenzhen, China, Aug. 11, 2022 (GLOBE NEWSWIRE) — The book Bank 4.0 written by famed banker Brett King predicted as far back as 2018 that the time had come for scripted finance. Printed on the cover was the slogan: Banking everywhere, never in a bank. Over the past three years, in the face of the COVID-19 pandemic, banks around the world have been driven by the idea of ”contactless” to explore the new possibilities offered by scripted finance.
This change had been greater in developing markets like China. Commercial banks and fintech companies are actively exploring new possibilities to merge financial services into consumer scenarios.
CMB YUNCHUANG Information Technology Co.,Ltd. of China (also known as 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 corporations, offering a new Chinese solution to global bankers.
It is reported that CMBYC, located in Shenzhen, China, is a fintech subsidiary of the world-renowned commercial bank, China Merchants Bank Ltd. (also called CMB). On July 4, 2022, the authoritative financial media The banker took out his Top 1000 Global Banks by Tier 1 2022in which China Merchants Bank Ltd. placed 11th. This is the 5th consecutive year that CMB has been included in this ranking.
The concept of scripted finance actually refers to a favorably interactive ecology that integrates financial services into consumer or industrial scenarios, delivering the former to the latter and creating an effective long-term connection. Such an ecology would include a large number of participants such as funders, operators, service providers and consumers.
CMBYC, as the founder and operator of this scripted ecology, exercises capabilities in both capital management and professional operation, the former succeeding CMB while the latter was nurtured by the company itself . Beginning with the cash inflows to corporate bank accounts and ending with its outflows to downstream trading partners, it is possible to build a complete picture of a company’s cash flow management.
CMB YUNCHUANG: “Scripted industry-finance connection model” paves a new path for scripted financial services
On the cash inflow side, the digital product Group business cash flow (referred to as GET) covers several functions for corporate users in the group, such as unified account access management, centralized billing management, and fundraising activity management. On the cash outflow side, the proceeds Scripted cost control system (referred to as SCO) not only integrates high-quality service providers in different fields such as air tickets, hotels and taxis, but also integrates more than 100 banks into the product by means of ERP integration, which creates a one-stop, scripted, eco-friendly platform providing both consumer, expense management, and financial services. And then, after generating and accumulating data on a company’s cash inflows and outflows, Multiple analysis platform (referred to as MAP) could perform a multi-dimensional analysis on this data, to dig deeper and reveal its hidden value in the funding context.
In this ecological model, to provide financial services, banks only need to carry out risk management based on the actual transaction data generated by the company’s customers, but no need to devote too much effort to excessive marketing or building a transaction script from scratch.
Transaction scale and cash flow generation are the primary metrics that banks would use to assess a business scenario. This Scripted industry-finance connection The model designed by CMBYC covers strong high-frequency demands such as corporate shopping, travel, and car rental. It is stated in research reports from iResearch, a professional market research and consulting institution in China, that corporate spending on sourcing, travel, car rental, group meals and of benefits would total several trillions of yuan in 2022. There is full potential for generating transactions and cash flows as well as bank values.
At the same time, transaction data generated from consumption scenarios could also be used in customer portraiture and demand forecasting, which are additional value-added services by CMBYC for banks helping financial services more accurate. The closed cycle of data, from cash inflows to outflows, could allow banks to track the actual use of their credit extended to corporate clients, further improving risk management and credit scoring capabilities.
As a fintech subsidiary in the banking circle, CMBYC’s new business model not only serves its parent bank CMB, but also invites other banks to jointly build a broader open business ecology. This new open model will provide banks around the world with a new avenue to explore scripted finance.
Company: CMB YUNCHUANG Information Technology Co., Ltd.
Contact person: Mr. He
Email: [email protected]
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