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Bank of China Grants a Credit Line of RMB 1.4 Trillion to Support 36,000 SMEs

On February 24, Bank of China held a press conference on the business development of Small and Medium Enterprises (SMEs).  By the end of 2010, Bank of China had more than 36,000 SMEs credit customers, with loans balance exceeding RMB 1,000 billion, and the credit line over RMB 1.4 trillion, as well as good asset quality. Bank of China achieved a faster growth in SMEs loan than average growth of the bank loan, and a sound and fast development.

First, innovating service mode and solving the problems of small enterprises finance fundamentally. Bank of China cooperated with strategic investors, and made integrated innovations on the basis of introduction, digestion and absorption. The bank launched the "Bank of China Credit Factory", a special service mode for SMEs. In spite of such traditional advantages as unified control, intensive management, the service mode also has such new features as expert agencies, standardization, normalization and assembly line work. The whole loan process has been optimized and innovated.

As the "Bank of China Credit Factory" mode has played an active role in settling the problem of SMEs finance, and won wide recognition by all circles of the society as well as government and regulatory departments. The mode has brought Bank of China many honors, such as "Excellent SMEs Service Providers", "Outstanding SMEs Service Products", etc. Moreover, branches of Bank of China have been granted with more than 40 awards by local authorities. According to the SMEs customer satisfaction survey results conducted by Ipsos, a leading global market analysis company, the degree of satisfaction for the new service mode was up to 92.5% in 2009 and to 94.3% in 2010, keeping a relatively high level for two consecutive years.

Second, changing the marketing concept and widening the SMEs service channel. Bank of China adopted the management concept, namely, "List Marketing", which requires to screen customers first and then actively promote the product to customers. The management mode can further improve the success rate of customer development, and reduce the blindness of traditional marketing mode. Meanwhile, Bank of China has established multi-level service system depending on its excellent channels. The bank conducted integrated marketing based on professional marketing by diamond team, and tried to absorb customer as many as possible relying on outlets, core customers, government, industry zones, associations, and chamber of commerce. 

Third, providing SMEs with comprehensive financial services through financial products innovation. First, considering that SMEs' pledge is insufficient, Bank of China has designed new guarantee modes such as "Yin Shang Tong Da", "Shang Hu Tong Bao", "Kuai Jie Dai", "Mian Dai Tong Bao", "Hao Yun Tong Bao", "Lian Bao Lian Dai", etc. Second, Bank of China takes full advantage of its diversified platform advantage, so as to provide customers with total life cycle financial services, extend service chains, and broaden service fields. Finally, based on its advantages in multi-channels, Bank of China has provided capital market financing services, and successfully supported seven SMEs IPO consequently. 

Fourth, implementing national strategies, and exploring new fields such as high and new technologies, culture and creation, "agribusiness" and "Go Out". First, "Zhongguancun mode" has been put forward, which makes innovations on customer orientation, marketing mode, product innovation, expert consult, examination mechanism and risk management. Such mode has offered high-tech SMEs a series of products covering initial stage, rapid growth, and steady development of an enterprise. Second, "Ying Shi Tong Bao" product was established to support the cultural and creative industry, for example, the Eternal Wave, Black Cat Sergeant. Third, giving the raw materials and fresh goods to pledge, Bank of China supported the development of "Agriculture, Farmer and Rural Area". Financial products like "Mian Dai Tong Bao" and "Ping Guo Tong Bao" has been launched by taking cotton and apples as the pledge. Finally, by use of the advantage of integration at home and abroad, as well as diversified platform of commercial banks, investment banks, securities and insurance, the bank helped SMEs go out.