In March 2023, the 10th China Supply Chain Finance Innovation Summit successfully concluded in Shenzhen, bringing together nearly 30 experts from academia, enterprises, and banking sectors to discuss innovations in digital, green, and ecological supply chain finance.
A highlight was the presentation by Wang Lei, President of Euro Steel Financial Services (Euro Steel FS), on "FinTech-Driven New Models for Industrial Digital Transformation." His insights shed light on technological applications revolutionizing supply chain finance.
Who Is Euro Steel Financial Services?
Euro Steel FS is a FinTech subsidiary of China Baowu Steel Group, established in February 2015. The company specializes in:
- Scenario-based financial services for industrial clients
- Digital solutions for financial institutions
- Cross-border trade platforms (e.g., EFFITRADE)
- Pilot projects like digital RMB applications
Their product suite includes:
- Tongbao (financing tool)
- Supply chain notes
- Factoring solutions
- Small-amount credit services
👉 Explore how blockchain transforms supply chain finance
Four Tech Pillars Powering Supply Chain Finance
1. Blockchain for Financial Rights Authentication
- Secures claims like receivables, warehouse warrants, and carbon credits via distributed ledger technology.
- Smart contracts automate transactions and enforce rules, enabling seamless digital asset transfers.
2. AI-Driven Risk Control Systems
- Combines user profiling with dynamic compliance frameworks.
- APIs and SaaS tools monitor business lifecycles, addressing regulatory challenges for state-owned enterprises.
3. Operational Efficiency Through Digitalization
- OCR and GPT technologies automate document processing.
- RPA bots handle approvals, account queries, and cross-verification of data models.
4. Unified Settlement Platforms
- Integrates payment gateways with financial management systems.
- Manages B2B/B2C funds segregation while ensuring compliance.
The Missing Link: Integrated Tech Middleware
Wang Lei emphasized that current systems lack a unified technical middle platform to connect microservices, cloud solutions, and SaaS tools. Euro Steel FS aims to:
- Leverage its ecosystem expertise and state-backed funding advantages.
- Develop customizable financial service bundles via modular middlewares.
👉 Discover low-cost FinTech solutions for SMEs
Future Outlook: Low-Cost Innovation Is Key
Wang quoted Shanghai University of Finance President Liu Yuanchun:
"High operational costs—from geopolitical tensions to trade fragmentation—stifle innovation. The future belongs to affordable, scalable digital solutions."
Strategic recommendations:
- Prioritize cost-effective tech pilots in supply chain finance.
- Foster partnerships to share risks and accelerate R&D.
FAQ Section
Q1: How does blockchain improve supply chain transparency?
A: By creating immutable records of transactions and asset ownership, reducing disputes and fraud.
Q2: What makes Euro Steel FS unique among FinTech providers?
A: Its dual role as a Baowu subsidiary ensures deep industry insights coupled with robust financial backing.
Q3: Can small businesses benefit from these technologies?
A: Yes—SaaS-based tools like OCR and RPA democratize access to advanced financial operations.
Q4: Why is middle platform integration critical?
A: It bridges disparate systems, enabling faster customization and scalability for diverse supply chain needs.
Q5: How does digital RMB fit into supply chain finance?
A: It streamlines B2B settlements, reduces FX risks, and supports programmable money use cases.
Source: Wanlian Network (Adapted from forum transcripts. Feedback welcome at [email protected]).
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