Dialogue with Feng Liang, President of MYbank: It starts with credit, not only credit

Nine years is just a drop in the ocean in the long river of history, but for MYbank, it has grown from a humble start to a leading private bank serving 53 million small and micro customers, and most of the customers are "credit white households" who have obtained loans for the first time.

Today, MYbank is iteratively upgrading its strategy, adjusting its business practices, exploring the pain points in the transaction scenarios of small and micro customers, and developing the "second growth curve" of transaction banking.

"The only constant is change", this "golden sentence" on the wall of the Guangming Dome Exhibition Hall on the second floor of MYbank is constantly implemented in the specific actions of each step.

On June 25, MYbank celebrated its ninth anniversary, and for the first time, it explained its transaction banking strategy.

Feng Liang, President of MYbank, said that transaction banking is the second growth curve of MYbank, and MYbank should not only become a "credit expert" for small and micro enterprises, but also a "fund management expert" for small and micro enterprises.

Feng Liang believes that the strategic upgrade stems from the change in the demand for small and micro finance. In the past 10 years, inclusive finance has focused on solving the problem of whether there is enough and insufficient small and micro credit, but there are still a large number of pain points in the fund management services such as collection, payment, and wealth management of small and micro operators, and there is a lack of banks to focus on solving them. This is the starting point of MYbank's transaction banking exploration.

"Started with credit, more than credit, established 9 years ago, we hope to provide financial services for small and micro operators who operate with integrity. In the era of AI, transaction banking will also usher in more possibilities. Feng Liang said.

Why do you want to be a transaction bank?

Q: In the 9 years since MYbank was established, what changes have taken place in your opinion?

Feng Liang: In the past nine years, MYbank has undergone great changes since its opening. Objectively speaking, our business, our customers, our own organization and systems, both internal and external, have undergone very big changes. As an entity serving small and micro enterprises, we are constantly embracing it, adapting to it, and moving towards the future in the midst of change.

But some things remain the same, we serve small and micro enterprise customers and the "three rural" things have not changed, we have always been around such a goal to do; Second, our entire service model is to explore the all-digital banking operation model in an all-digital way, which has not changed, and has been exploring in this way; Third, all of our problem-solving and problem-solving focus on the improvement of technical capabilities, and this matter has not changed.

Q: What is the logic of MYbank's strategic upgrade?

Feng Liang: In the past nine years, MYbank has started with Taobao and Tmall Credit, and has successively reached today, and the customer service bandwidth of our small and micro enterprises has been very wide. Downwards we have reached thousands of farmers, and in the upward industrial chain, relatively speaking, small enterprises are also the objects of our services, which have been greatly extended. In this process, in addition to credit, we have become more and more complete in terms of accounts, fund management, wealth management, bill services, and even some foreign exchange services. This direction has not changed, we are not copying a thing, but combining our scene, the needs of our customers, may be some details, in the eyes of many people is a very detailed thing, we just make it deeper, better, faster. Our team has always had a vision in mind that every small and micro enterprise operating with integrity can obtain financial services that grow together, and MYbank hopes to grow with them in this process.

How to be a transaction bank

Q: What are the main products of the transaction bank?

Feng Liang: MYbank has launched two sets of small and micro fund management solutions, Business Card and E-commerce Pass, which are aimed at self-employed people and small and micro enterprises respectively. Together with the previously upgraded industrial chain financial solution Dayan System, they form the three major sectors of MYbank's transaction banking.

Q: What pain points does e-commerce solve?

Feng Liang: E-commerce Connect is the first exclusive fund management service for e-commerce enterprises: one account supports the collection of all mainstream e-commerce platforms such as Taobao, Tmall, Douyin, and Pinduoduo; Procurement and marketing payment can be scanned to pay, no need to insert a U shield; MYbank also cooperated with DingTalk to embed the "cash register" into the office software, so that the purchase order can be paid directly after approval, and each expenditure can be seen at a glance. The live money in the corporate account can also be transferred to the enterprise Yu Libao, or the bank can purchase stable financial management to obtain capital appreciation. In addition, services such as opening, use, transfer, and withdrawal are currently free of charge.

At present, one out of every three e-commerce companies is using e-commerce. On the Tmall platform, half of the merchants have already opened. Half of the active merchants who use e-commerce connect manage their finances through MYbank.

Q: What are the considerations for this business card?

Feng Liang: What else can we do besides credit? We can see that large enterprises have special treasury management departments and financial teams, and large financial institutions serve them, and individuals have VIP services from banks to serve them in private banks. However, the liquidity management needs of this part of the customers in the middle are a blank in the market, and no one serves him, so we have made a product "business card" under such needs or problems, because no one is specifically for the group of people who do business to manage this piece of funds, what kind of services should be provided, and do the "one card" of business people's capital management.

Create a second growth curve

Q: Many banks are mentioning transaction banking, so what are the characteristics of MYbank's transaction banking?

Feng Liang: In the transaction banking strategy, the characteristics of MYbank mainly come from three aspects. First, the user base, in terms of credit, MYbank has accumulated 53 million small and micro operators; The second is the convenient experience of digital banking. MYbank does not have offline outlets, and Alipay can be used to reach the widest range of customers. The third is technology precipitation. From big data risk control to intelligent risk control systems such as Big and Bailing, MYbank continues to innovate in the field of small and micro financial technology, laying the foundation for transaction banking.

Q: What are the adjustments to MYbank's organizational structure to implement the transaction banking strategy?

Feng Liang: The organizational structure, we were incubated step by step, at the beginning this team was a small team under the product department, and slowly we set up a cash management department. This year we upgraded it, and the transaction bank is relatively a large sector, probably beyond the concept of other banking departments.

There are probably a few here: one is the transaction banking team for individuals and self-employed; There is also a corporate-oriented, e-commerce corporate transaction banking team; There is a team that specializes in serving the financial needs of small and micro enterprises, which is basically such a service model.

Organizationally. What are our benefits? Today, our organizational adjustment is relatively flexible, and the entire organizational adjustment can be quickly adjusted according to market changes, which is relatively fast for Internet companies. But the direction and mode of adjustment is to follow the needs of customers, and if the needs of customers arrive today, we will set it up as a new organization. Of course, if we find that such an organizational form is not suitable for such mechanisms and changes, we will also adjust it.

Q: How much does transaction banking contribute to MYbank's profit?

Feng Liang: Our order is like this, first of all, we need to see how many customers there are today, how many people are using it, and how many customers have used your services; second, how many people have made transactions in the service; The third is how much profit this business generates, in fact, each business comes from one by one, and this is used to see the health of the entire business.

In terms of the volume and scale of customers, and the volume and scale of small and micro enterprise customers, we have become very large in the whole market. From the scale of transactions and the AUM generated, we see a statistical caliber, the inter-bank consignment sales of bank wealth management products, there are statistics in the industry, we are the second in the whole market, the first in China Merchants Bank, and we are the second, which is about such a level.

It is a certain thing that transaction banks will account for a higher and higher proportion of MYbank's profits this year. It's something that happens naturally, and we're more focused on where the customer is, what are its needs, what are the problems that aren't being solved, how can we do it a little bit better, that's a fundamental question. If this question can't be answered, many things are short-lived.