Blockchain solution helps SMEs with finance

ZhongAn Online P&C Insurance is ramping up efforts to boost the integration of industry and finance with its advanced blockchain technology, aiming to reduce funding costs for small and medium-sized enterprises and make finance more inclusive.

A recent industry survey showed that 66 percent of enterprises suffered from overdue payments in 2019, and the situation was made worse by the COVID-19 pandemic, with small and medium-sized enterprises hit the most.

Central government is calling for more innovative monetary policy tools that can directly help the real economy and facilitate companies resume productions.

ZhongAn Technology, a subsidiary of the carrier, is committed to promoting integrated development of industry, finance and technology and offers a set of supply chain finance solutions.

To help core enterprises optimize their supply chain management, the company is cooperating with Hainan International Energy Trading Center on plans to build an integrated service platform and solve companies’ financing difficulties with blockchain technology.

There are a large number of accounts receivable and payable in the energy trading supply chain. With the blockchain solution, banks can extend enterprises loans at relatively lower costs by getting credible data of their business operations.

ZhongAn Technology also offers professional and convenient financial service support to agriculture, rural areas and farmers in Hunan Province. Blockchain technology and supply chain finance has helped seed producers, distributors, retailers, growers and rice processing enterprises seek cheaper funding.