Shanghai Commercial Bank is committed to improving digital transformation and customer experience. In recent years, through the use of financial technologies, the Bank has enhanced its digital banking functions on internet banking and mobile banking, including remote account opening and online loan application.

Mr. Ryan Fung, Deputy Chief Executive, Chief of Retail & Digital Strategy of Shanghai Commercial Bank, shares how Commercial Data Interchange (CDI) has helped SMEs apply for bank loans through alternative data.

 

New opportunities brought by collaboration between Shanghai Commercial Bank and data providers

Shanghai Commercial Bank understands that the financial documents provided by the SME customers may not fully reflect their latest financial status, and customers may encounter difficulties when opening accounts and applying for loans. To address these pain points, the Bank now provides one-stop account opening and loan application services. Customers are no longer required to submit documents. The Bank can use alternative data, such as credit card transaction details, to quickly and accurately understand customer's operation status in real-time. This can also help simplify the KYC process as well as loan application and approval process.

 

Benefits of CDI and how it differs from the conventional model

CDI is a secure and reliable platform that allows data providers to share alternative data with customer consent, and also to evaluate more alternative data in a faster and more efficient way.

In the past, banks had to ask data providers individually for customer's commercial data and credit information. Through CDI, Shanghai Commercial Bank can obtain customer's commercial data in a more timely, comprehensive and standardized way. This simplifies the loan application and approval process, while enhancing customer experience.

 

Use of CDI in the future

Shanghai Commercial Bank hopes to provide the market with more successful business cases, and to attract more data providers as well as government agencies to adopt the use of CDI. With that, more diversified data can be provided, more application scenarios can be developed, and more innovative financial products and services can be introduced. More market participants in CDI can significantly reduce cost, improve accuracy and efficiency, and accelerate the development of inclusive financing. All these benefits can help the Bank's SME customers take advantage of CDI and grow their business.