The promotion after billions of dollars: a new breakthrough in small microfinance finance of Minsheng Bank

Including business and credit, Lok received silver, extraordinary wealth housekeeper three brands, covering small micro-enterprise loans, small micro-enterprise settlement and small micro-business owners of individual and family integrated financial services, such as Minsheng Bank, "Business loan promotion version" is about to launch. This is based on the success of the traditional version of the business lending to the foundation: August 25, Minsheng Bank's small micro-enterprise loans-business lending balance breakthrough 100 billion yuan, ahead of 4 months to achieve the bank's chairman Dong Wenpei in the "2009CCTV China economic Year figures"　　At the ceremony, the end of this year's loan balance reached 100 billion yuan, which also marks the second half of last year's "small Micro-enterprise Bank" strategy has begun to bear fruit. Before the realization of the phased goal of 100 billion yuan, the first task of the small Microfinance service of Minsheng Bank is to gain a firm foothold, to carry out the business of credit through concentrating resources, to realize the rapid leap of loan scale and customer number of small micro-enterprises, and to establish the advantageous position in the same trade. After the realization of the phased goal of 100 billion yuan, the goal of small micro-financial services of Minsheng Bank has changed from the main pursuit of loan scale to loan scale and comprehensive benefit, from simple business loan loans to small micro-enterprises, including payment and settlement services and small micro-entrepreneurs ' family wealth management.　　In Dong Wenpei's words, it is to realize the transformation from the traditional version to the upgraded version, and to realize the transformation from the current comparative advantage to the absolute advantage of the Minsheng bank in the Small Microfinance service field. "The bank that makes small micro enterprise" first the business loan of Minsheng Bank has been launched officially since February 2009, by the end of October, less than two years, the cumulative loan amount of more than 200 billion yuan, the loan balance of more than 130 billion yuan, customers close to 100,000 households, the rapid creation of China's banking small micro-financial services, the first brand,　　This is the vast majority of the industry and the peer sector is unimaginable.　　"The bank that makes small micro enterprise" can first to be successful, the system advantage, good execution ability and innovative business model that the Minsheng Bank Company's business department reform brings is the key factor. In early 2006, Minsheng Bank began to start the company's business focus on the reform, the company's business from the branch to receive branches; In early 2008, Minsheng Bank fully implemented the company's business division reform, nationwide more than 400 branch outlets are no longer engaged in the company's business, all become a retail business platform. Over the next year or so, Minsheng has been exploring the main products and services of the retail branch. Because the retail business needs the continuous capital and the manpower investment, only relies on absorbs the retail deposit, the sale wealth management product and carries on the housing mortgage loan, can not satisfy the branch business development demand, also can cause the management the enormous pressure. In the Bank of China, Dong Wenpei first saw the great prospect of microfinance services, and put forward the strategy of entering into the small micro Financial Services blue sea. Subsequently, Dong Wenpei proposed the "merchant into the branch, the merchant into the counter" thinking, the small micro-finance services into the retail business category, which for the branch found a newBusiness growth, is conducive to the rapid development of branch business, to fill the company's business after the business is zoned out, but also for the development of small micro-finance to free up a huge space.　　If there is no centralized business and division reform, more than 400 branches can not concentrate on small microfinance services, because under the traditional system, the branch of the Customer Manager as long as the service of several major clients will have a good income, there is no incentive to engage in small micro-financial services, including retail business. The good executive power of Minsheng Bank makes the business lending in a short period of a few months in the full line of rapid expansion. The microfinance service was first proposed by Dong Wenpei in June 2008, in the second half of last year, he put forward the strategic positioning of Minsheng Bank to "make small micro-enterprise Bank", making small micro-financial service one of the three major customer strategies of Minsheng Bank. According to people living Bank insiders, Dong Wenpei began to come up with the concept of small microfinance services, Minsheng Bank has a lot of people, including some branch governors and retail line of some executives are not very understanding of this, they feel that the business prospects are not Dong Wenpei said so good, think three years can do 100 billion yuan scale is good That the risk of this business must be higher and the outlook should not be too optimistic. However, in spite of such doubts and disapproval, for many years for the chairman of the Dong Wenpei excellent business sense and business judgment of trust, from the head Office retail Banking Department to the branches, business and credit to the full advance.　　With the rapid expansion of the loan scale and the fast increase of the number of customers, with the development of the established business model, along with the in-depth communication between the Customer Manager and the merchant, the whole line is more and more convinced of the Dong Wenpei judgment, the prospect of small micro-financial services is becoming more and more confident and more and Once determined to fully enter the small micro-financial services blue Sea, Minsheng Bank in the allocation of credit resources and staff assessment incentives, the priority to small micro-finance tilt. In the second half of last year, Minsheng Bank, which faced capital constraints, put most of the new loan resources into the business sector; this year, more than 60% per cent of the new 200 billion trillion-dollar loan scheme, set by Minsheng earlier in the years, was invested in small microenterprises and small and medium-sized enterprises, which accounted for the majority In the first three quarters of this year, Minsheng Bank new loans of 109.47 billion yuan, of which the business loans to the new 75.202 billion yuan.　　At the same time, in order to fully mobilize the branch to carry out the initiative of microfinance Services, Minsheng Bank in the branch of the assessment and incentives for the corresponding adjustment, greatly mobilized the enthusiasm of the branch. For most domestic banks, small micro-business loans are untold pain. In the 1980 's, banks started small micro-enterprise loans, which ended up with high labor costs and high non-performing loan rates. Therefore, finding the right business model makes the labor cost of small micro enterprise loan greatly reduced, and the non-performing loan rate can be controlled is the success of the business. This paper sums up the reasons for the failure of small micro-enterprises ' loan in traditional mode., Dong Wenpei put forward the guiding ideology of "planning first, mass marketing, standard operation" to achieve wholesale retail business, thus greatly reducing labor costs. Dong Wenpei pointed out: the so-called planning first, is to carry out serious market research on the basis of clearly put forward to support what, encourage what, focus on what kind of customers. "Planning first" mainly embodied in two aspects, first, business cluster business planning, the second is the branch around the merchant business planning, the former mainly focus on the branch of the area of the merchant resources concentrated, the latter mainly rely on the branch network marketing service capabilities. Dong Wenpei put forward, retail to develop, must be mass marketing, to form scale efficiency. To be on the basis of planning, the commercial district, all kinds of business concentration, wholesale market set a set of standardized product mix and clear loan conditions, and will be in the most concentrated place of merchants to carry out a unified marketing, to achieve the purpose of mass marketing.　　At the same time, Minsheng Bank pays special attention to the construction of "credit factory" of microfinance service, giving priority to manpower and resources to develop small micro credit system. In the avoidance of high risk, the business loan is based on the principle of large number of laws to determine the default rate, according to the principle of income cover risk loan pricing. Minsheng Bank President Hongzia pointed out that the law of large numbers is a concept of risk pricing, through the development of similar customers can disperse small business risk, single customer risk can be ignored, this is statistically correct, is the basic method of controlling risk. It is understood that Minsheng bank credit factory to the small micro-customer rating system, will be divided into Ⅰ, Ⅱ, Ⅲ level, different levels of default rate and loss rate, select different levels of customers and bear the corresponding losses.　　Hongzia pointed out that the key to small micro-business is pricing, such as benchmark interest rates plus default compensation, term premium, loss rate, customer adjustment, etc., which is the basic principle of pricing. External competition within the pressure of the challenge although the success of the business lending, but for Dong Wenpei and Hongzia, does not mean that the Minsheng Bank's small microfinance services can rest easy.　　Outside the competition, there is pressure, standing in the loan balance to break through the high point of 100 billion yuan, the business loan need to upgrade. In the small micro-enterprise loans, Minsheng Bank first step, in the banks of the market in the doubt and hesitation, CMBC early entry, and through a series of innovation to walk in the forefront of the banks. Only a few months after the launch, other joint-stock banks have started to launch similar products and are playing billboards. From the terms of those products, many aspects and business loans, but also developed a number of security methods, and some conditions than Minsheng bank concessions. Minsheng Bank Shanghai Branch of the small micro-finance Department of a head said: "Some banks are behind us to rob customers, for example, we developed a business market customers, they immediately go to the business market and the management side, put forward below our interest rate, direct and we play price and pull customers. Banks to rob this piece of the market, making the original lack of competition in the small micro-enterprise market began to smoke, a lot of business loans through the customerThe difficulty of doing business is increased. At the internal level, the structure of the loan is not satisfactory to Dong Wenpei. From the new lending situation, the guarantee from the strong gradually weakened, the mortgage class accounted for gradually reduced, to ensure that the class accounted for the continuous improvement. By the end of September this year, the proportion of mortgage-backed loans was down 63.8% from the initial 98.34%, while that of guaranteeing the proportion increased from 0.6% to 33.4%. But the credit class ratio has not been able to achieve the amount of breakthrough. The increase of loan ratio is closely related to the innovation of guarantee mode. Through 11 kinds of guarantee methods, Minsheng Bank has successfully developed a group of guarantee type loans such as UNPROFOR and mutual insurance. At present, the credit loan ratio is very low, although it is related to the higher risk of credit loan, to the requirement of account manager and risk manager, and to the current credit system of banking. At the beginning of the 21st century, in order to guard against moral hazard and corruption, banks carried out lifelong credit responsibility system, and once a loan became bad, the client manager and the risk manager would suffer great mental stress and material loss, said Professor Song Min, director of the China Financial Research Center of the University of Hong Kong, This is a certain historical conditions in order to solve the problem of banking non-performing loans, the phased approach, it is also effective at preventing moral hazard and reducing non-performing loans, but this is not permanent because it has a negative incentive for business development – the existence of a lifelong credit system that allows account managers and risk managers to avoid credit loans as much as possible. Without extensive access to the credit market, in the face of small micro-enterprises with sufficient collateral or easy to meet the guarantee conditions, lending rates will be subject to restrictions, as Hongzia pointed out, the small micro-pricing is generally not less than 9% to cover the risk, which does not include derivative deposits, such as comprehensive efficiency, if coupled with the cost of debt, It must be big to 11-12% to realize the risk of income coverage.　　By the end of September, the rate of implementation of commercial loans from the beginning of the 6.27% increase to 6.56%, the floating ratio from 19.66% to 24.01%, distance of 9% of the income coverage risk level is still a big gap. In addition, at Minsheng Bank, when it comes to small microfinance, it will immediately think of business lending, that is to say, the main products and services of microfinance are loans, which is related to the most urgent demand of small micro-enterprises, which means that Minsheng bank only satisfies the basic loan demand of small micro-enterprises, and the corresponding payment and settlement services are few, Small micro business owners and families of financial services are few, in this case, although Minsheng Bank has nearly 100,000 small micro-enterprise customers, but by the end of October, more than 130 billion yuan business lending-driven full line of personal financial assets of 20.9 billion yuan, Each household financial assets of 250,500 Yuan, the corresponding intermediary business is also very few, the derivative effect of business lending has not yet fully revealed. Since this year, since the CBRC's "Three Laws and a guideline" and for commercial banks deposit and loan ratio "No time is not more than 75%" strict requirements, the absorption of deposits into the first job of each bank. If the dispatch of the commercial lender is effective,Should be insufficient, will bring great pressure to the bank's deposit management, and will greatly increase the cost of capital.　　Obviously, despite a series of successes and Halo, Minsheng Banking small microfinance services still face severe challenges, Dong Wenpei began to change. From business loans to small micro-enterprises comprehensive financial services since the beginning of September, Dong Wenpei spent nearly two months to study the development of the branch research business, he has investigated more than 10 branches of nearly 200 sub-branches, with branch governors, customer managers and small micro-business owners to communicate, and listen to the voice of small micro-enterprise customers, Understand the challenges faced by sub-branch distributors. On this basis, in late October, Dong Wenpei proposed that the small micro-financial services of Minsheng Bank is to make the promotion version of business loans, that is, to achieve the overall financial services from the business to small micro-enterprises to upgrade. Therefore, Minsheng Bank to meet the financing needs of nearly 100,000 small micro-enterprises, how to comprehensively upgrade the small micro-enterprises, small micro-entrepreneurs and small micro-business owners of financial services, become the next step in the work of the focus.　　Therefore, Dong Wenpei a comprehensive interpretation of the concept of micro-finance, pointing out the three levels of microfinance: business lending, small micro-enterprises comprehensive financial services, the resulting small micro-entrepreneurs personal and family financial services. According to the planning of Minsheng Bank, by the end of 2012, the balance of business loans will reach more than 400 billion yuan, the number of customers will reach 40.5 million households. This growth must be achieved through a full-scale foray into small micro-enterprise credit lending. In the face of small micro-enterprises that cannot provide collateral and are difficult to secure, but their credit conditions are good and the risk of repayment is low, satisfying their loan needs is the next key point of development for Minsheng's lender. Therefore, Dong Wenpei proposed that the risk system should be adjusted to improve the risk tolerance of credit loans. This will greatly encourage the client manager to open up the credit market, so that the real according to the law of large numbers and the principle of income cover risk of loan pricing.　　At that time, the overall adverse rate of business loans may rise, but the corresponding interest rate floating level will be greatly improved, the benefits cover the risk. In the past, the customer is mainly "a circle of two chain" (Business Circle, supply chain and industrial chain), the next step of the customer will expand to the branches of the retail investors around the branch, that is, from the small micro-loan business wholesale do turn to wholesale and retail, to achieve the merchant on the counter This depends on the early launch of the small microcredit system. September 27, Minsheng Bank small micro-business credit management system pilot in Nanjing Branch started. It is understood that Minsheng Bank for small micro-business characteristics of the design and development of small micro-business credit management system, covering sales, imaging operations, paperless input, the management of loans, loan approval, credit management, collection, net silver, phone calls, such as small micro-business operation of the whole process, the system using the international advanced Process Bank management tools, The development of small micro-business customer scoring model, credit scoring model, project scoring model, behavioral scoring and other quantitative management models, can help the approving staff to carry out loan approval and pricing, assist the management staff to carry out day-to-day monitoring,Renewal of credit and collection, so as to realize the small micro-business of Minsheng banking high-speed processing, assembly-line, fine management, differential pricing and cross-selling, for small micro-customers to provide all-round, multi-channel financial services. Hongzia pointed out: "Small micro-system in Nanjing branch after the successful pilot to the counter, retail-oriented."　　Relying on the advanced microfinance system, small micro-enterprise loans in the over-the-counter marketing will greatly reduce labor costs. Small micro-financial services, in addition to the loan proceeds, deposits and intermediary business prospects are also very broad, small micro-entrepreneurs also have a huge wealth management space. Small Micro Enterprise single household settlement scale is limited, but the transaction is active, through the continuous promotion plan first, insists the mass marketing, can realize Mickle, derives the huge cash flow, thus comprehensively promotes the customer the comprehensive value, establishes the solid customer relations; At the same time, small micro-enterprises can derive a lot of intermediate business income points, In the formation of a 100,000-level, or even hundreds of thousands of-level small micro-customer groups on the basis of its derivative settlements, remittances, bills, even letters of credit, letter of guarantee and other intermediary business income are difficult to estimate, the prospect of optimism; In addition, the mainstream clients of small micro-enterprises for financing demand in about The wealth assets held by the individual and the family are well above the social average, and at present a considerable portion of the Minsheng Bank's clients have accumulated a great deal of personal wealth, which is particularly urgent to strengthen the wealth management of this part of the clients.　　In view of these characteristics, Minsheng banking micro-finance service will launch two brand new brands-Lok cashier and extraordinary Wealth Butler, the former is dedicated to small micro-enterprises to provide services such as payment and settlement of a product, the latter is a small micro-business owners and their families to provide comprehensive financial services of a product. Through the introduction of including business loans, Lok cashier and the extraordinary wealth Butler's business loan promotion version, Minsheng Bank will provide small micro-entrepreneurs and their families, including loans, industry consulting, financial advisers, investment advice, financial planning, and other integrated financial services, so as to achieve a comprehensive improvement of microfinance services.