OREANDA-NEWS. August 06, 2014. In recent years, ICBC has actively explored the financial service mode for micro and small enterprises (MSEs), and by integrating Internet technologies and risk management technologies, innovatively developed an Internet-based financing product “online revolving loan” which enabled MSEs to finish application, withdrawal, and repayment of loans via Internet. Statistics show that at the end of June 2014, the balance of “online revolving loan” exceeded RMB 300.0 billion to stand at RMB 301.4 billion, up by RMB 49.4 billion or 16% from the beginning of the year. Meanwhile, ICBC has totally granted RMB 1.34 trillion loans through “online revolving loan” to 63,000 MSEs so far. At present, it is a financing service product with the biggest single amount in China’s Internet finance field, making ICBC the largest Internet credit service bank nationwide.
 
“Online revolving loan” is an Internet self-service revolving loan service tailored for MSE customers by ICBC. After signing a revolving loan contract with the Bank, enterprises can finish the application, withdrawal, and repayment of loans via Internet within the effective period of the contract. Without limit on time and space, the service particularly meets the demands of MSEs for short-term, frequent, and urgent funds. As the “online revolving loan” is efficient and only generates interest for withdrawal, enterprises can borrow and repay loans based on peak-seasons and off-seasons of sales, which can effectively help reduce financing costs and meet intermittent and periodic fund demands.

Relevant head of ICBC said that “online revolving loan” is not a simple “simulated offline process”, but rather a set of business mode fit for network operation with risk under control, which integrates the cross-space, -time and -regional characteristics of Internet and can effectively support “borrow and repay at anytime” business demands of customers. Meanwhile, the nature of Internet finance is still finance which is inseparable from risk management. In this aspect, after years of experience, ICBC has developed a complete risk management system, professional team and stronger risk pricing capability. ICBC's solid financial O2O (Online To Offline) foundation has also offered strong guarantee for the development of “online revolving loan”. Although the Internet has bucked restrictions of information flow and fund flow, it still can not overcome the limitation of logistics and physical outlets or address the interpersonal trust issue. The regular financial risk prevention measures such as business inspection, business review and approval, collateral registration, and post-lending monitoring still need support from offline business. In this aspect, ICBC can leverage its strength in channels to flexibly realize the integration of online and offline businesses.