Wang Qingbin: Internet finance and traditional banks how to achieve win-win situation

Since its establishment on July 8, 1994, the Beijing Branch of China Merchants Bank has now had 66 sales outlets and over 3700 employees with a total assets of more than 700 billion yuan after 20 years' development. The accumulated profits and taxes have surpassed 60 billion yuan, To provide more than 2 trillion yuan in credit support to tens of thousands of corporate customers and more than 130,000 individual customers. Profitability, asset quality and other core indicators among the highest in the system and the industry.

Today, the young China Merchants Bank Beijing Branch is facing the overall transformation of China's banking industry. China's banking industry bid farewell to the golden decade of development is ushering in a challenging new era of marketization of interest rates. 20-year-old China Merchants Bank Beijing Branch how to deal with this transition? Is it really necessary to revolutionize the bank's internet finance? Will non-performing loans become a heavy burden of development? With these questions, the reporter recently interviewed Wang Qingbin, vice president of China Merchants Bank and president of Beijing Branch.

Two transitions should deal with the marketization of interest rates

Beijing News: Recently the pace of marketization of interest rates has accelerated, large deposit certificates will soon be opened up to businesses and individuals, and bank profit margins have been further squeezed. Combined with the situation of China Merchants Bank in the north, what impact has the market-oriented interest rates brought?

Wang Qingbin: From an international perspective, after the interest rate liberalization, the interest rate margin of the banks narrows rapidly, resulting in a marked decline in profits. Many banks in the United States and Taiwan declare bankruptcy shortly after the interest rate liberalization. China Merchants Bank earlier realized that the marketization of interest rates is the trend of the times. It has conducted two strategic transformations in succession, adjusted its business structure and upgraded its internal management to meet the challenge of marketization of interest rates.

First of all, the wholesale and retail business of branches is developing more balancedly. Currently, savings deposits at branches account for almost half of self-owned deposits. Retail loans account for nearly 40% of total loans and retail business profits account for about 45% of total profits. This business structure is more conducive to stabilizing the impact of market-based interest rates.

Second, the middle business accounted for a higher proportion. In recent years, the middle business of branches has maintained a rapid development. Currently, it accounts for nearly 30% of the total revenue and can effectively cover the impact of narrowing interest spread on net interest income.

However, in the two fields of inter-bank business and bill business where the interest rate is basically marketized, China Merchants Bank Beijing Branch also has accumulated sufficient experience, which helps the branch to adjust its business model rapidly after all the interest rates have been marketized.

Beijing News: Spreads rapidly narrowing space, profits fell sharply, as a bank how to adjust?

Wang Qingbin: Although China Merchants Bank in the face of the challenge of marketization of interest rates has been fully prepared, but in many ways we still have a lot of room for improvement.

First of all, we should continue to push forward the secondary transformation with service as the main line, solve the problem of who serves, what to serve and how to serve, enhance the innovation capability of business models, the integration of internal resources, the professional ability of cadres and staff, Positioning, change service model, make its own characteristics.

Second, according to the head office to build light bank. The one hand, the pursuit of "light" assets, reduce the risk of high weight, capital occupy more business. On the other hand, we will continue to enrich and develop our intermediary business. While consolidating our existing advantages, we will speed up innovation in such cross-border financial and private banking business sectors and continue to increase the proportion of revenue generated by intermediary businesses.

In addition, the Group continued to rapidly grow its customer base and continued to improve its internal management.

Complementary with Internet finance

Beijing News: Recently, the impact of Internet finance on the traditional financial industry, there are saying that the Internet banking financial life to the bank, how do you think?

Wang Qingbin: Internet finance impact on traditional finance or inspiration, I think the main can be summarized into three aspects: First, focus on customer experience, from the customer's point of view the design process and interface, to maximize customer convenience; Second, inclusive finance , Extend the financial services to the customer groups less covered by the traditional financial institutions; third, make use of the big data technology to comprehensively analyze the customer behavior and innovate the risk identification and management mode.

In the face of Internet finance, Tian Huiyu, head of China Merchants Bank's head office, pointed out that Internet finance and traditional banks can achieve win-win cooperation, provided that banks must strengthen their own practice and maximize their professional capabilities. On this basis, banks will strengthen their cooperation with Internet finance in the role of industry application, rely on Internet finance to provide traffic and provide banking services on more levels of platforms.

Beijing News: Internet era, the traditional bank is still an advantage? How do you think the traditional finance should use the Internet?

Wang Qingbin: I think banks need to continue to strengthen service and professional capacity-building, and form a benign and complementary pattern with Internet finance.

To consolidate the existing service advantages. Internet finance is not an alternative to traditional financial services at present. Banks should strengthen their infrastructure in these areas and optimize their processes based on effective risk prevention so as to provide better service experience to customers.

To continuously improve service convenience. Using Internet thinking, improve the functions and customer experience of online banking and mobile banking, accelerate the exploration of ways to serve customers through emerging media, increase the distribution of business outlets and improve the coverage of basic services.

The other is to strengthen consultative service capabilities, give full play to the professional advantages of staff.

Always take risk prevention as a lifeline

Beijing News: In the first half of this year, a number of non-performing loans of many banks rose to become a hidden danger in China's banking industry. CMB Beijing branch of the situation?

Wang Qingbin: In the past two years, branches are still maintaining excellent asset quality in spite of the pressure from all aspects including the slowdown of economic growth and the declining business conditions of the enterprises. Since the beginning of this year, the Beijing branch still managed to "double down" its public non-performing loans. The non-performing loans of individual individuals, though slightly increased, were also controlled at a relatively low level. As of the end of June, the overall NPL ratio of the branches was only 0.19%.

Beijing News: China Merchants Bank North points for the prevention and control of non-performing loans have no specific measures?

Wang Qingbin: Since last year, we conducted a thorough and thorough risk investigation on the credit business and the emerging financing business including the interbank business. From the results, the pressure on the Beijing branch is not that great. This is mainly due to the fact that since its establishment, Beijing has always taken risk prevention as a lifeline and adhered to the concept of sound management. It has fostered a good risk culture at the Bank.

In terms of specific operation, the branches earnestly implemented the credit policies of the head office, carefully involved industries with downside risks, and adopted the compression exit or list system management measures for industries with large credit risk to ensure that the risks were manageable as a whole. Strict compliance Credit business operation procedures, strictly prohibiting counter-process operations and non-compliance lending; adopting differentiated risk management instruments based on different businesses, focusing on substance rather than mere formality; making full provision for and adequacy of risky assets and adequacy of risk mitigation Strong; emphasis on professional training, improve account manager, risk manager, loan officer team building.

Strongly support the development of small and micro enterprises

Beijing News: From 1994 to this year, China Merchants Bank in the Beijing market hard 20 years. Beijing branch in the face of the financial environment of the market is how to do?

Wang Qingbin: In Beijing, with a large number of banks and centralized bank headquarters, in order to occupy a place in this fierce competition, Beijing Branch firmly established the service concept of "changing as you are" so as to serve Beijing's real economy And to meet the financial needs of the capital city as a legislature.

Under the guidance of this concept, branches have introduced many innovative financial products and service solutions in light of the needs of economic and social development in the capital area, as well as the characteristics of the retail high-end customers, large enterprises and large group headquarters and the concentration of small and medium-sized S & T enterprises To meet the individualized and integrated needs of customers. It has formed a unique competitive advantage in the retail wealth management and private banking businesses, small and micro businesses, cash management business, cross-border linkage business and asset custody, thus creating a Brand influence.

Beijing News: Just now you mentioned that there are many small and medium-sized tech-innovation enterprises in Beijing. SME loans are also a direction for banking restructuring. What measures does China Merchants Bank take in Northern Micro-enterprise lending?

Wang Qingbin: At present, small and micro enterprises account for about 30% of loans. In recent years, branches vigorously promoted the business of small and micro enterprises. First, the business departments of small and micro enterprises were established earlier. Specialized teams were set up in various branches and staffed with product personnel, loan adjusters and home workers in the department, Complete business development, risk management chain, significantly enhance the marketing capabilities and business processing efficiency.

In the meantime, we have continued to increase investment in resources. Both our credit resources and staffing positions have insisted on leaning toward the small and micro enterprises. At the same time, we have also established specialized branches and specialized enterprises to facilitate enterprises Access to banking services. In the recent two years, the increment of loans for small and micro enterprises has exceeded 100% of the total loan increment.

In addition, to strengthen product, business model and management innovation. For small-scale asset management operations, quick cash flow, lack of collaterals and other characteristics of collateral, branches continue to innovate business and risk management.

Finally, continue to expand cooperation channels. Branches stepped up the depth and breadth of their cooperation with trade associations, chambers of commerce and specialized markets and concentrated their support on the development of a large number of high-tech enterprises, cultural and creative industries and small and medium-sized enterprises in emerging industries. In the meantime, the branch continued to promote the "Qian Ying Exhibition Wings" project and worked with organizations such as PE to provide a full range of financial services to small enterprises and help dozens of enterprises to achieve a successful listing.

"From an international experience, after the interest rate liberalization, the interest rate margin of the banks narrows rapidly, resulting in a marked decline in profits." Commercial banks earlier realized that the marketization of interest rates is the general trend and has successively carried out two strategic transformations to adjust its business structure .

It is necessary to continue to deepen the secondary transformation based on the service line, solve the problem of who serves, what to serve and how to serve, enhance the innovation capability of business models, the integration of internal resources, the professional ability of cadres and employees, identify the customers' Change service mode, make its own characteristics. "