Financial services in industries
The industrial finance has been evolving through three phases. It was originally financial services mode (1.0), then finance in an industry value chain (2.0), and gradually become an ecosystem of industry and finance’s integration (3.0). The industrial finance in China is has gone through phase 2.0 and phase 3.0, and it is now transforming to the ecosystem of phase 3.0.
Global Fintech Lab’s has built a distributed development sharing system based on consortium blockchain technology with its practice in industrial finance. It combines characteristics from industry value chains, supplies financial services to industry segments, resolves issues in trust, risk, efficiency, funding, knowledge-sharing, management, etc, and constitutes an ecosystem.
Case 1: Blockchain and Smart Caring
This aged care enterprise is facing problems such as shortage of funding, weak service capabilities and lacking credibility. These issues have limited its development. Global Fintech Lab designed a customised solution for the enterprise as a solution of regulation commitment, consumer payments, service information management, risk management, etc. In an aged care consortium blockchain, all the servicing enterprise nodes’ trading information are published onto the blockchain, thus witnessed by funding institution nodes and credit enhancement institution nodes. Information becomes transparent and undeniable in this system. This method not only helps with fund raising, but also assists with risk control, and solves the problem of credibility which is one of the root causes of senior care industry. It has contributed with building a new mode of the aged caring industry’s ecosystem.
Case 2: Lead Metal Battery Consortium Blockchain
This enterprise is a platform specialised in battery new energy logistic services. It is a comprehensive service system established in 2015 and specialised in cycling lead metal. After five years’ development, the company moves on to assist more than 40,000 battery recycling shops’ operating fund to improve the efficiency of supply chain. It needs finance to achieve this target in industrial value chain. However, issues like information asymmetry, long life cycle of receiving payments, incomplete processes, and shortage of fund for end terminal companies have impacted the efficiency of the value chain severely.
Global Fintech Lab connected the platform with China Merchant Bank head office and SME finance department of Webank. GFL helped this company to rebuild its operation platform with blockchain technology. As a result, account receivables of lead metal recycling companies have been integrated as blockchain data. Suppliers’ orders information is published by core enterprises onto blockchain when a trade happens. Payment commitments are transformed to certificates of account receivables via blockchain so that suppliers can use those certificates to access finance. Based on this system, 600,000 electronic bicycle maintenance and sales stores, logistic companies, smelters, battery factories, resellers and all lead metal industry related parties have been connected to complete trade, clearance, payment, financing, and other business activities. At the same time, the system also supports logistic upgrading, operation standardising, data mining and enterprise efficiency improvement.