Days ago, OneConnect held the first Seminar for Internet Finance Association of Small and Medium-sized Banks (IFAB) in Shenzhen, which attracted senior management from nearly 30 city commercial banks and rural commercial banks across China. The seminar discussed the cooperation between small and medium-sized banks with Ping An Group (PAG) in areas of “internet finance” and “fintech”.
As pointed out by Ye Wangchun, Chairman of OneConnect, the IFAB will be committed to becoming the No.1 brand of internet finance association of small and medium-sized banks, in a bid to work together with small and medium-sized banks to achieve a win-win situation through “technological exchanges, platform sharing, concerted development and joint innovation”.
Below is Ye Wangchun’s speech made at the Seminar for Internet Finance Association of Small and Medium-sized Banks.
Dear leaders and guests,
I’m Shanghai OneConnect Internet Technology’s Chairman Ye Wangchun. I’m very honored to invite you to spare your time for the Seminar for Internet Finance Association of Small and Medium-sized Banks sponsored by PAG’s OneConnect. First of all, I would like to extend a warm welcome on behalf of PAG and OneConnect to all distinguished guests attending the seminar.
Currently, small and medium-sized banks are faced with three challenges, namely economic downside, market-based interest rate and internet plus. Many small and medium-sized banks hope to make a transformation by reducing costs, seeking new business and profit growth points; however, due to lack of professionals, technologies and products, it’s difficult for them to achieve a transformation by relying solely on their own development. We need to make concerted efforts, cooperate with each and rise to the challenge together. The IFAB came into being just against this backdrop to seek cooperation, innovation and technological advancements, and make full use of internet finance and fintech; and its establishment happened to coincide with the goal of “keeping pace with the times, unity of knowing and doing, co-building and sharing, and pulling together in times of trouble” as highlighted by Chairman Xi Jinping at the just-concluded G20 conference.
Being the lead sponsor of the IFAB, PAG is the retail financial services provider with the most complete set of financial licenses and widest scope of business in mainland China. For internet finance, it has built an internet finance strategic system characterized by “One Gate, Two Focuses, Three Platforms and Four Markets”. Its internet finance has seen rapid growth and gathered nearly 300 million internet financial customers.
Being the day-to-day operator of the IFAB, OneConnect is an important carrier of PAG’s internet business, with extensive internet finance business layouts and financial service scenarios. It has established a basic platform and put underlying technologies in practice, including finance OneConnect, direct-selling banking, credit and online lending, and liquidity management.
All city commercial banks and rural commercial banks present here have unique regional and customer base advantages; while Ping An has carried out extensive exploration and gained considerable experience in internet finance business and fintech. In view of difficulties facing banks in transformation and development, our joint development and cross-sector cooperation will be an inevitable choice for us to meet the three challenges.
For the three challenges, we need to join forces to help small and medium-sized banks change from holding their own assets to managing assets together, so that small banks can also engage in “big investment banking”, “big asset management” and “big wealth management” and face competition from big banks.
For the three challenges, we need to facilitate innovation and help small and medium-sized banks build a shared cloud platform together instead of each pouring time and money to build one’s own, so that small banks can also use big core, big system and big platform to welcome a new financial era.
For the three challenges, we need to complement each other’s advantages and help small and medium-sized banks change their development model, from single regions and individual products to cross-region and multi-product mix, so as to enable small banks, multi-regions, multi-products and increased cooperation, thus realizing a strategic transformation in business development.
We consider organizing an association, conducting activities in groups (specialized committees), and focusing on matters of concern to small and medium-sized banks to carry out communication and interaction, so as to achieve cooperation through the model of “technical exchanges, platform sharing, cooperative development and joint innovation”.
We are to apply the latest fintech based on blockchain, cloud computing, big data and the internet to build and develop a new generation of information technology system platform for small and medium-sized banks to achieve rapid growth in the number of customers and online business, and foster new profit growth points with technological support.
We are to use online interbank trading platform and liquidity cloud platform to build up the asset management and liquidity operation management capability of small and medium-sized banks, and gradually establish a discounted pricing system for bank members, in order to enable interbank lending and asset interconnection, cut costs and improve efficiency whiling controlling liquidity risks.
Through platform cooperation in retail direct-selling (DS) banking, output of retail big data risk management technologies and sharing of black and grey lists, we are to introduce a new model of retail business development for small and medium-sized banks, effectively promote the development of the new-typed retail business and help them make a transformation towards retail business.
Through regular strategic research, training and forums and electronic journals, we are to cultivate a new batch of internet finance experts for small and medium-sized banks, in order to enhance their professional competence in internet finance and promote their information-based transformation.
We sincerely hope that we can conduct in-depth discussions and effective cooperation with all of you on internet finance business, new finance and new technologies, discussing rules and building a mechanism to fight off the challenge!
Today, we gathered together here in the hope that bankers present could discuss with Ping An how to achieve cooperation and create a win-win situation, how to seek common ground while reserving differences, and how to make transformations towards internet banks, high-tech and new-finance banks.
Thanks again for your support for the IFAB. The association will go hand in hand with small and medium-sized banks. We also hope the banks present here could contribute ideas and exert efforts for the future cooperation and development of the Association. Faced with the new trend, let’s step up our efforts, be vigilant in peace time and make new achievements in the development of internet finance for small and medium-sized banks. Finally, I would like to wish each of you good health and good luck. Wish the seminar a success! Thanks all.