The stability and efficiency of the supply chain are crucial for the harmonious operation of various industries, enhancing the collaborative development of enterprises engaged in these chains. To this end, the role of high-level financial services becomes indispensable. Many enterprises involved in these chains face significant funding gaps and financing bottlenecks, which make it challenging for them to sustain operations and investments. This is where supply chain finance steps in as a vital solution. By leveraging the creditworthiness of dominant enterprises within the chain, this innovative financial approach reshapes the financial landscape for various stakeholders.

For example, in industries tightly intertwined with everyday life such as automotive, home appliances, and food and beverage, the integration of supply chain models offers remarkable conveniences for both businesses and consumers. At the recent Second Chain Conference, attendees had the opportunity to explore the “China Bank Smart Chain” exhibition, which encompasses ten distinct sub-chains pertinent to various industries. Wang Lei, a senior product manager from the Transaction Banking Division of China Bank, explained the nature of these services, emphasizing their tailored approach that responds to the unique characteristics and needs of enterprises across different sectors. This distinctly contrasts with traditional, one-size-fits-all financial services.

To illustrate this, Wang shared the example of the home appliance sector. China Bank has crafted financial solutions that focus on the entire industrial chain, centering on manufacturers while simultaneously extending comprehensive services to upstream component suppliers, downstream distributors, and end consumers. This strategy not only enhances the quality and innovation of the industry but also allows consumers access to better-quality home appliances at competitive prices, fostering a win-win scenario.

Another critical segment of the economy is the specialized and innovative small and medium-sized enterprises (SMEs) that play a pivotal role in filling, reinforcing, and strengthening supply chains. These growing entities exhibit urgent financing needs. To facilitate smooth and effective interactions between enterprises and capital sources, the conference featured the “One Month, One Chain” investment and financing roadshow. Here, leaders from specialized SMEs in various fields, including semiconductors and smart manufacturing, presented their core businesses and competitive advantages to potential investors. Feedback from participants revealed that the event had effectively provided a platform for visibility and accessible financing pathways. Post-event, several investment organizations have shown interest in preliminary collaborations with these SMEs, promising to boost their technical development and market expansion.

As enterprises continue to generate vast amounts of data in their operational processes, the significance of financial technology in enhancing supply chain efficiency cannot be overstated. During the supply chain service thematic forum at the conference, industry experts expressed enthusiasm over how financial technology enriches diverse credit assessment methods positioned for chain enterprises. This evolution leads to a digitized and online-driven product environment where many operational facets can be completed online—substantially increasing the approval efficiency.

Bao Xiaochun, the deputy general manager of the Beijing branch of the Industrial and Commercial Bank of China, highlighted a noteworthy collaboration with major enterprises to develop a supply chain financial service platform. This initiative integrates various streams of data encompassing funds, credit, logistics, and information, enabling rapid and accurate analytics for chain enterprises. As a result, the bank can respond promptly to settlement and financing needs, maintaining a low default rate.

In a relatable context, Zhang Yong, deputy general manager of the Corporate Institutional Business Department at the head office of the Bank of Communications and vice president of its Beijing branch, reinforced the increasing requirements for timely funds during peak seasons, such as the start of the year or quarterly closures. To address these needs, the Bank of Communications has leveraged cutting-edge technologies like cloud computing and intelligent information matching to establish a rapid project engagement mechanism. They have launched nearly ten financing products that can now process funds in seconds, reducing the average disbursement time from one or two days to under a minute. This innovation has effectively alleviated the prolonged collection cycles and liquidity constraints faced by companies, ensuring stable financial operations within the supply chain.

Nevertheless, a prevailing reliance on core enterprises to provide credit backing, contract validation, and repayment commitments poses challenges in the financing of supply chains. Zhang acknowledged this trend and detailed how the Bank of Communications is utilizing digital technology to standardize extensive and complex legal agreements and procedures, facilitating more widespread access to transaction information. This strategic shift minimizes the overdependence on core enterprise credibility and further extends the opportunity for supply chain de-centralization.

Looking ahead, Zhao Ping, president of the Research Institute of China Council for the Promotion of International Trade, emphasized the importance of innovating cross-border financing products and services to bolster the financial support offered to core and critical enterprises within the supply chain. She proposed the adoption of new technologies such as blockchain, the Internet of Things, and big data to enhance the digital foundation of supply chain finance. Furthermore, she advocated for leveraging the credit influence of core enterprises to integrate bank credits into the procurement behaviors of upstream and downstream businesses, thereby strengthening the commercial creditworthiness of all entities within the chain.