Serving New Retail Creating a New Platform Postal Savings Bank Promotes Digital Transformation of Lending

The first thing that comes to mind when mentioning Postal Reserve Bank is the bank's outstanding retail business. Postal Reserve Bank has a huge retail customer base, with 39,700 business outlets and 578 million individual customers as of the end of 2018, covering more than 40% of China's total population, and the bank's total financial assets under management of individual customers (AUM) totaled 9.27 trillion yuan.
In recent years, while actively practicing financial inclusion and accelerating the development of retail credit business, UPB has actively seized the development opportunities of the digital era, aimed at serving new retail, strengthened the application of new technologies and new methods, and accelerated the digital transformation of its lending business. In less than 3 years, the bank's online lending business has experienced leapfrog development.

Perfect and rich online loan products and services
From a product perspective, UPB's online lending products are rich and extensive, providing a wealth of online products and services in consumer finance, three rural finance, small and micro finance and credit cards.

In terms of consumer finance, Postal Reserve Bank has launched “Post Enjoyment Loan” and “Post Home Loan”, which can dynamically adjust the pre-credit amount on a monthly basis according to the customer's income and expenditure, asset status and other relevant data, thus realizing automated credit-granting.

For external salaried customers and college students, Postal Reserve Bank has launched “Post Salary Loan” and “Post Study Loan”, which further introduce external data, increase the dimensions of information, and form a qualitative and quantitative combination of customer evaluation system, realizing full online processing and intelligent approval.

Serving the “three rural areas” has always been the market positioning of Postal Reserve Bank, and is also one of the bank's competitive advantages. Postal Reserve Bank continues to innovate financial loan products for the three rural areas, accelerates the development of Internet loans, enriches online loan products, and launches “E Jie Loan”, a loan product that combines online and offline, as well as “Extreme Loan” and “Pocket Loan”, which are purely online loan products for the whole process. “Pocket Loan”.

The problem of “difficult and expensive financing” for small and micro enterprises is a key concern of the government. In recent years, regulators have repeatedly issued documents to support the promotion of inclusive finance and financial services for small and micro enterprises, and emphasized the need to deepen financial supply. Postal Reserve Bank has been treating small and microenterprise financial business as a long-term strategic business, continuously optimizing its product system, focusing on building an online, standardized and specialized product model, and launching online products such as “Small and Micro Easy Loan” to enhance customer service efficiency.

In the field of credit cards, Postal Reserve Bank has developed thematic products that are more suitable for online channel customers, such as the Youth Card, Easy Bear IP Credit Card, and Tencent Sports Co-branded Card, in response to the diversified needs of the young customer base.

In addition to providing a wealth of online loan products for different customer groups, Postbank's loan service approach is also quite distinctive. “While launching a series of fully online loan services, we play to the advantages of our widely spread and sinking channels to build an O2O service model. The online service functions such as online loan pass, card loan pass and E-Jet loan are superimposed on the line-type loans to realize 'offline application and online lending', providing customers with a more UPB-specific online-offline linkage loan service method.” Li Jingshu, general manager of the consumer credit department of Postal Reserve Bank, introduced.

Li Jingshu said, the Postal Reserve Bank is currently through all kinds of online channels and a wide range of offline outlets channel linkage, to create a three-dimensional service system, to provide customers with 7 * 24 hours of round-the-clock service. Setting up a unified entrance for loans in mobile banking, matching offline service outlets near each customer applying for a loan online, so as to provide more comprehensive, larger and more in-depth services, and to meet the more diversified financial service needs of customers. The introduction of mobile business development equipment further extends branch services and realizes the change of service mode from “waiting for customers to come to the door” to “delivering services to the door”.

Fintech support leads to realize intelligent wind control
Along with the rapid growth of online loans, UPB has maintained excellent asset quality, with a non-performing loan ratio of 0.86% as of the end of 2018, well below the average level of non-performing rates in China's banking industry. The excellent asset quality is inextricably linked to the bank's implementation of the concept of comprehensive risk management and the use of digital risk control technology throughout the entire process of personal credit management.

“UPB applies technologies such as big data, machine learning, and mobile Internet to the entire loan process of marketing, application, approval, and post-loan, realizing digital, automated, and intelligent management of the entire life cycle of the loan,” said Li Jingshu.

At the customer acquisition stage, CPS Bank has built a dual-wheel drive model of “internal prospecting + external expansion”. Based on the 578 million retail customers in stock, the bank digs out significant internal data such as issuance records, transaction water, asset information, loan information, etc., and fine-tunes the stratification of customers in stock, screens for high-quality customers with good credit, and accurately locates the target customers.

In the application stage, the bank relies on customer behavior, communication, credit and other data, and builds customer relationship mapping by associating negative information, and comprehensively evaluates from the dual dimensions of user anti-fraud and equipment anti-fraud, so as to effectively prevent the risk of fraud.

In the approval stage, the bank introduces external data to increase the dimension of cross-validated information and improve the quality of information; and accurately identifies customers through quantitative scoring technology and intelligent decision engines. Loan approvals are based on automated approvals, with manual approvals supplementing where necessary.

Finally, in the post-loan stage, with the help of customers' personal account history data and behavioral characteristics, the People's Bank of China credit and other external data, and relying on data-driven behavioral and collection scoring models, UPB carries out tracking and analysis of account risk levels, accurately assesses account risks, and accurately triggers relevant account management strategies, and then builds a refined, intelligent, and intensive post-loan management system.

To realize intelligent risk control and scientific management of the entire life cycle of the loan, in addition to the application of new technologies, the support of the supporting operational system and working mechanism is essential. “We have supported the implementation of intelligent wind control and full life cycle scientific management of online loans through the construction of retail credit factory operation mode.” Li Jingshu introduced, “In short, online loan application stage is completed by the customer online operation, after the application information into the credit factory processing, into the piece through the automatic approval module, most of the automatic pass or automatic rejection, only a small portion of the need for further manual decision-making, loan and post-loan links need to be manually intervened in the work, can be completed by the credit factory. ”

It is understood that in the credit factory operating model support, the postal bank to achieve the online loan decision-making intelligence, management intensification and operation standardization, support the online product continued rapid iteration and upgrading, the approval of efficiency and quality greatly improved, customer experience is good.

Creating a new platform for online loan open service
While using new technologies to realize the digital, automated and intelligent transformation of lending services, UPB is also actively building a new platform for online lending and open-ended services, connecting industrial finance and consumer finance, giving full play to UPB's service advantages in practicing inclusive finance, and providing comprehensive financial service solutions for cooperation on various types of platforms.

At present, CPS Bank provides online loan products such as supply chain financing, small and medium-sized easy loans, serves the consumer scenarios such as housing leasing, home decoration, automobile consumption, education assistance, tourism, etc., and connects to WeChat, microblogging, short videos, information flow entrances and other Internet platforms to carry out cooperation with an open stance and create a variety of cooperation scenarios.

Taking auto finance as an example, UPB follows the trend of scenario-based car consumption and ecological car life, builds a new platform for open cooperation in auto finance, and actively cooperates with many parties. For example, the bank has built a platform with auto finance companies, through system docking, information sharing, and the use of intelligent wind control modeling to achieve automatic approval, giving full play to the bank's capital advantages and continuously expanding the service clientele.

In addition to financial services, in terms of automobile industry chain services, Postbank and its controlling shareholder, Post Group, work closely together to realize a new platform for one-stop automobile sales + financial services, such as car viewing, car selection, car purchase, credit, car insurance, non-stop electronic toll collection system (ETC), car and driving management, vehicle collateral, logistics and distribution, and so on. By using PostLeisure.com, the bank realizes the release of automobile sales information as well as the attraction of traffic, and supports the cooperation with the Ministry of Public Security in carrying out the “Police-Postal Pass”, so that it can easily and conveniently apply for Vehicle Driving Control and vehicle collateralization services at postal outlets.

At the same time, the Postal Savings Bank starts from multiple scenarios, all-channel linkage, to build a multi-level, wide-coverage home consumption solutions. While providing various types of housing loans for urban and rural residents, Postal Savings Bank also provides customers with a full set of services from home purchase to home, combining offline lending products with online lending products to meet customers' needs for one-stop consumption, such as home furnishing, after the purchase of a house, and embedding online lending into offline consumption scenarios. Cooperation with a number of online and offline platforms to realize the embedded scene platform infusion, providing multi-scene consumer financial solutions.

In the rural market, CPS Bank provides online solutions for agricultural loans, adopting the “full-process online mode + online and offline combined mode”, realizing a two-wheel drive to serve the three rural areas.

Specifically, UPB will actively promote the interconnection with excellent Internet platforms, realize online customer acquisition, online line of credit generation, online approval, online post-loan early warning and other functions, and provide embedded online loan services for the high-quality customer base of Internet traffic platforms to realize platform interconnection; promote the faster extension of online lending to industrial financial services, and realize interconnection with more industrial leading enterprises to connect wholesale and retail finance; rely on technological innovation and big data application to accelerate the layout of mobile terminal functions, and give full play to the bank's advantages in channels, capital and professionalism to build a new financial service ecology across the urban-rural binary economy, and achieve industry interconnection. It will also promote the extension of online lending to industrial financial services more quickly, interconnect with more industrial leading enterprises, connect wholesale finance with retail finance, and realize industrial interconnection; rely on technological innovation and big data application, accelerate the layout of mobile terminal functions, and give full play to the Bank's strengths in channels, capital, and professionalism, to build a new ecology of financial services that straddles the urban-rural dichotomy, and continue to do a good job in three-peasant and consumer financial services to realize urban-rural interconnection.