Experts from Vonechain Technology Visited Fumin Bank to Discuss About Technological Development Path of Private Bank Together

Recently, under the invitation of Mr. Zhang Guoxiang, chairman of Chongqing Fumin Bank Co., Ltd, Mr. Zhang Dongxiang, head of Finance Research Institute in China Management Science Society, Mr. Liu Tao, CEO of Vonechain Technology and Mr. Cai Maohua, deputy general manager of Vonechain Technology visited Chongqing Fumin Bank to participate in the seminar entitled “Financial Technology (Blockchain) Builds New Ecology of Future Digital World”. Accompanied by president, Mr. Chu Longchun, Mr. Zhang and the inspection team which consisted of 7 technical experts from Vonechain Technology started their research.

The inspection team

After having short conversation, we found out that Fumin Bank is the first normal examination bank in which more than 95% is online business with total asset worth 53 Billion Yuan, 10 million of service clients and 1.2 million of card issuance volume. Currently, the platform construction is comprehensive and complete, and at the same time Fumin Bank also hoped to discuss about related cases and implementation scenarios of blockchain empowering supply chain finance together with the experts.

Mr. Chu Longchun, director and president of Chongqing Fumin Bank Co., Ltd hoped to achieve efficient drainage among client group and requested to reduce management risk via blockchain technology.

Therefore, Mr. Zhang Dongxiang stated that, empowerment of blockchain in supply chain finance should be built above BaaS underlying layer for business combination. For example, target client group accurately, increase viscosity of clients and enhance relative financial scenarios matching via supply chain product traceability and DAO organizational management. Moreover, Mr. Zhang also mentioned that, blockchain can handle risk control through describing client portrait accurately to reduce defect rate and solve current development dilemma in private bank.

Mr. Liu Tao, CEO of Vonechain Technology said that, embracing new technology such as blockchain can help private bank to reduce cost, increase efficiency and stimulate new vitality.

Experts discuss together on how blockchain can facilitate private bank development

In order to further increase level of understanding in blockchain among industry insiders, Fumin Bank invited Mr. Liu Tao, CEO of Vonechain Technology to share about the content of blockchain.

Contents shared included origin of blockchain, business model, value in financial sector, DAO organizational pattern, DeFi industry race, NFT business model, “metaverse” development, central bank digital currency and so on. This sharing which combined national policy and market trend comprised of both industrial theory and case analysis in order to provide compliable, referable, feasible theoretical support and business guidance for promoting cognitive level of all industries on blockchain technology practically and facilitating digital transformation process of Fumin Bank.

CEO, Mr. Liu Tao is sharing content about blockchain

During the seminar, Mr. Liu Tao shared the advantages gained via empowerment of blockchain in financial technology service industry. This had further intensified the understanding of participating leaders in empowerment of blockchain in financial technology service industry and obtained high acknowledgment from department leaders of Fumin Bank, while both parties had carried out in-depth discussion on cooperation in future.

Technical Empowerment Facilitates Digital Transformation of Bank

Rapid growth of economy, advanced financial services and surging wealthy class in China have provided “fertile soil” for the development of private bank. However, disadvantages such as shorter period of establishment, weak client base and less branches cause private bank development to be restricted. Besides that, due to the pandemic, our country’s economy and financial situation change drastically as time goes by, hence how to deal with multiple challenges occurred in and out of country has become a new difficulty in private bank development. After experiencing multiple times of practices and exploration, accelerating digital transformation has become a common consensus among bank employees.

Recently, in order to comply with client segmentation market and scenario requirements, medium and small-sized banks apply strategy of using technology respectively to drive business development so that new technologies such as blockchain, AI, big data, biometrics and so on can be used to improve financial supply and optimize financial structure.

As private bank faces bigger reputational risk, data security requirement will be higher than other financial agencies. Therefore, blockchain’s tamper-proof of data, traceability and provable characteristics ensure effective online financial network security, make data collection, application and storage under financial scenarios to become more standardized and transparent, maintain data asset security effectively and increase credibility of private bank.

Furthermore, due to weak client base, less branches and limited service ability, “financing difficulty and high financing cost” problem has been existing in private bank. Hence, “information sharing” mechanism of blockchain technology makes actual transaction information “issue on chain”, presents real and credible business scenarios and solves financing dilemma in a certain extent.

Technical support plays an important part in transformation and development of private bank. As mentioned by Mr. Liu Tao, CEO of Vonechain Technology, embracing blockchain can help private bank to reduce cost and increase efficiency, consolidate and develop existing influence, and also stimulate new vitality of industry. As the leader of blockchain technology, Vonechain Technology will insist on empowering financial industry via technology, facilitating private bank transformation and promoting national digital finance development together.