Commercial banks use fintech to back micro and small enterprises

Chinese commercial banks are exploring technological and digital measures to give small business owners wider access to loans and tackle risk management challenges.

"The dominant thinking in our exploration is to offer clients standardized products based on the use of data and technologies, so that we are able to serve a wide range of micro and small enterprises, improve risk management and reduce costs effectively," said Zhao Xiaojun, deputy general manager of the retail credit department of China Merchants Bank Co Ltd.

Over the past three years, the Shenzhen-based commercial lender accelerated its exploration of digital transformation, technological transitions and financial inclusion for small businesses after its president Tian Huiyu announced in 2017 the goal of transforming China Merchants Bank into a fintech-powered lender.