According to the joint research data of Tsinghua University and Peking University, 29.58% of SMEs’ operating income will drop by more than 50% in 2020, and 58.05% of SMEs will drop by more than 20%; 85.01% of SMEs believe that their liquidity on their books can only maintain the company’s operation for no more than three months. Affected by the epidemic situation, many small and medium-sized enterprises are facing a crisis due to their cash flow. At the same time, small and micro enterprises are speeding up to “break through” online. How can digital technologies such as blockchain enhance the risk resistance ability of small and medium-sized enterprises so that they can share the dividend of Inclusive Finance? Ma Qisheng, head of ant blockchain trade finance department, shared his thoughts.
Small and medium-sized enterprises are the most active group in the economy, and they are also the weakest link in the whole industry chain. Due to the characteristics of small scale, decentralization, low assets and strong liquidity, financing difficulty and high financing cost are always the problems that need to be solved urgently for small and medium-sized and micro enterprises. As a result, small and medium-sized enterprises are easy to fall into difficulties such as stagnant capital turnover and even affect social and economic operation due to sudden changes in the market or the general environment. How to promote the transformation of small and medium-sized enterprises and give them the opportunity to share the dividend of Inclusive Finance?
From our practical experience, the effective means to solve the above problems is to help their business gradually move towards digitization, so that financial institutions can provide them with flexible and fast financing services based on the data generated by digital operation. Based on this, it is expected that digital technologies such as blockchain will bring new dividend period for small and micro finance.
Blockchain gives birth to small and micro financial dividends
In the past 20 years, the vigorous development of the Internet all over the world has formed information internet business models such as e-commerce, social networking and content, and promoted the transmission of trust on the network and the digital transformation of all walks of life. However, in the wider industrial scope, the overall digitization of small and micro enterprises is actually very slow: a large number of “small and scattered” assets exist in the traditional offline way, and through too many inefficient links in the complex circulation process, a large number of trust problems are brought about.
How to use new technology to drive industry digitization, bring higher benefits for enterprises, and let every participant in the trade chain enjoy the opportunities brought by digitization, which is a problem we have been thinking about. We try to use blockchain to solve this problem. For example, each link is deployed on the blockchain, so that all participants can realize information synchronization and be trusted.
From this point of view, blockchain accelerates the whole process of industry digitization, and promotes the realization of greater value after industry Digitization: due to the characteristics of unforgeability, blockchain can further tap the value of data, form digital assets accepted and recognized by financial service institutions, so that small and medium-sized enterprises can enjoy better inclusive financial services. For example, in the ant blockchain dual link platform, a supplier with a registered capital of only 30 yuan can obtain financing by virtue of its accounts receivable.
Small and micro enterprises have become able to enjoy a series of fund management, credit services and insurance services from a situation where full-time accountants can’t afford. This is a series of dividends brought by digital technologies such as blockchain.
The technology dividend of the industry is not isolated
The dividends of digital technology are not isolated. The wider the scope of industrial digitization, the more geometric growth can be produced by technology dividend effect. The advantage of blockchain is that it can build a value network based on the information internet, greatly simplify the friction of all parties in the traditional circulation of assets, realize the high degree of coordination of business flow, information flow, logistics and capital flow, and form an interconnected value Internet.
Taking the foreign trade industry as an example, merchants digitize commodity information, payment and other information. The application of blockchain technology makes all the information more authentic and can not be tampered with. On the contrary, it promotes the business process faster and the risk decreases sharply. Based on the core system of order loan and the real information uploaded by merchants, financial institutions can participate in the industry production, transaction and logistics links seamlessly. This is a simple attempt of ant blockchain in trade finance.
The downstream of foreign trade is logistics industry. The traditional transportation and cargo loan business is often relatively low in digitalization, and we often don’t know where the goods are and whether they are actually delivered. After digitization, the participants can timely understand the delivery information and freight information, and also know the storage situation of the goods. A large number of real information enables financial institutions to better participate in logistics production and provide customers with freight payment period, freight guarantee and other services.
On the dual link financial platform of ant blockchain, both the basic information of core enterprises mastered by the front end and the transaction situation of downstream customers in the supply chain can be connected to financial institutions through “double link”, so that they can better provide various services such as accounts receivable loans.
Only by digitizing the industry and making the data produce value can various industries allow financial institutions to participate in the business chain of small and micro enterprises, bring real value to small and medium-sized enterprises, and feed back the digitization process of the whole industry, so that small and medium-sized enterprises can do business better and do their business more simply.