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China Launched first Blockchain-based Platform for Unsecured Loans to SMEs

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Jayashree Ingle Follow


Jan, 16 2020

Jan, 16 2020

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China's major FinTech firm OneConnect (OCFT) has launched a blockchain-powered financing platform in Shenzhen province. This platform will facilitate small and medium-sized (SME) enterprises for unsecured loans. This platform comprises prominent corporate profiles and has access to 213 categories from 26 government departments and 129 financial Institutions including the China Construction Bank and ICBC among several others.  The platform also has massive data of 11 million companies related to risk evaluation. It also has launched 319 financial products.

Inaugural Event Issued Financial Credits to three Companies 
The platform was inaugurated on 2 January 2020 by Guangdong provincial Governor, Mr. Ma
It issued online unsecured loans on Blockchain technology on the inauguration event using a distinct feature called the’ Intelligent Matching’ for lenders and borrowers. Just after the launch, it executed the first financial credit contract within 10 minutes.

The initial receivers were as follows:

  • Guangdong Sunlux IOT Technology was issued 500,000 Yuan or approximately $71750 in foreign trade financing from Ping An Bank.
  • Huizhou Shenghua Industry received 1.12 million Yuan (around 161,000) in supply chain financing from ICBC.
  • Corehelm Electronic Technology was issued 200,000 Yuan (approx. dollar 28,700) under intellectual property financing from China Construction Bank.

OneConnect has availed Guangdong Digital Government Data resources and its own databank for artificial intelligence, Blockchain Technology, and Big data to develop this platform. This platform uses blockchain technology for sharing information which ensures privacy, security, and transparency and thus will build mutual trust factors within the network of the company.

OneConnect CEO Ye commented that Blockchain technology allows the Financial Institutions to access the company information within the limits of laws and regulations and it also resolves the financial glitches for SMEs from Foreign trade, manufacturing or even from science and technology

Ping An and OneConnect
OneConnect is an associate firm of financial giant Ping An. It is known as China's leading Technology as a Service (TaaS provider ). Last year it published a white paper on the application of blockchain technology in the financial sector under the title “Establishing an open and shared financial system with Blockchain.”

China recently has imposed strict liquidity risk management requirements on smaller moneylenders which resultantly has discontinued the regular flow of capital into the banking system. Outwardly that has affected the financial sector that has been a traditional way of raising capital SMEs.

OneConnect believes that “ New platform with blockchain as its key underlying technology marks the deep integration of digital government and FinTech, signaling that  difficulties in obtaining financing including the associated high cost and slow pace of completing the process, faced by SMEs can be solved by following the Guangdong model”

As a major financial technology company, it has a leading service platform for financial institutions. This platform offers cloud network technology solutions leveraging its extensive financial Service industry expertise.
#OneConnect #Fintech #IntelligentMatching #blockchain #Unsecuredloans #CryptoAssetRating 

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Jayashree Ingle

CBW - External Analyst


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