In the past few days, Nanjing Branch of the People’s Bank of China has released a list comprising the second batch of fintech innovation supervision pilot applications. Among them was the application with innovative approaches to the financing services of enterprises developed by Nanjing Digital Finance Industry Research Institute (hereinafter referred to as the Digital Research Institute).

The “blockchain-based auxiliary risk control product”, jointly rolled out by the Digital Research Institute, Jiangsu United Credit Co., Ltd., Nanjing Branch of Agricultural Bank of China and Tongji Blockchain Research Institute, leveraged the Yangtze River Digital Finance Platform which is a digital financial infrastructure created by the Digital Research Institute and put in place a credit risk control mechanism that integrates multi-party data applications and data privacy protection to accurately identify the assets information, operation data and financial status of enterprises, so that the financing risk control capabilities of banks would be improved, loan risks and costs be reduced, and difficulties or expensiveness in financing for small and micro enterprises be effectively alleviated.

Thanks to the product, the Yangtze River Digital Finance Platform linked data of multiple parties and with the support of their secured calculations and asymmetric encryption technology, Jiangsu United Credit Co., Ltd. garnered the data and carried out calculations over the risk control model of Mortgage E-loan of Agricultural Bank of China before outputting the auxiliary risk control information within seconds and sending it back to the ABC.

Risk control results would directly decide whether the small and micro enterprises could quickly obtain credit and financing for the ABC Mortgage E-loan products, saving the trouble of going through lengthy and cumbersome credit procedures in the traditional crediting process and thus markedly enhancing the efficiency of gaining credit for these types of enterprises. Apart from that, auxiliary risk control information could also serve as post-lending risk control support for the ABC, reducing the workload of credit staff in the bank and lowering the credit costs.