MYbank Leverages AI to Serve Financing for 53M SMEs

MYbank: Leveraging AI Technology to Provide Financing for 53M SMEs

MYbank made an announcement on Wednesday which says that it has served over 53 million SMEs cumulatively in 2023. The company has recently released the Annual Report for the year 2023. MYbank continues to invest in technology with 36% of operating expenses invested in technology and more than 64% of its employees are from tech backgrounds and are tech-savvy, states the report.

MYbank is one of the top digital banks in China and a subsidiary of Ant Group. Using Ant Group's own proprietary Bailing foundational model, as well as other cutting-edge AI technologies, MYbank facilitates better lending decisions, improving access to finance for its vast network of SME customers, all without physical branches.

Lark System, MYbank leverages AI to serve financing with AI-driven conversational risk management solutions and has continually improved its credit line management to meet the needs of SMEs. Lark acts as a 24-hour digital customer service management system that automates customer interactions and processes different types of customer-uploaded information. Lark uses multi-modal analysis to accurately evaluate customer needs and provide customized credit lines. By the end of the year 2023, Lark had serviced more than 8 million small and medium-sized enterprises (SMEs), with an average increase in credit limit of RMB 45,000 per customer.

The Goose System of Mybank leverages AI to serve financing for functions of knowledge graph tools to map SMEs across various industry supply chains, and for supply chain finance across various sectors. The system has enhanced the ability of the bank to evaluate SMEs' business conditions and creditworthiness by automatically analyzing industry research reports.

The Tomtit System of MYbank uses satellite remote sensing to detect crop types and estimate the agricultural output of individual farmlands identified on a digital map by growers. The Tomtit System improves the bank's ability to accurately assess potential credit risks, allowing it to make better credit decisions when farmers submit collateral-free loan applications. As of 2023, the Tomtit System recognizes 15 types of crops. 1.69 million Chinese growers across 31 provinces have applied for online loans through the Tomtit System, in the field of agriculture finance.

The Goose System has contributed to more than 1 million small and micro-sized enterprises while among them 64% have received their first loan without collateral. As a result, these SMEs could take more orders than the average monthly order growth of 17%, only in the automobile industry as Mybank leverages AI to serve financing.

According to MYbank President Feng Liang "MYbank remains committed to supporting SMEs' funding needs amidst ongoing economic and technological transformations. As a technology-driven bank, MYbank will enhance its capabilities through continuous exploration of artificial intelligence and other emerging technologies, aiming to make finance more inclusive for all."

MYbank leverages AI to serve financing for 53M SMEs as it continues to invest in technology to meet the frequent, urgent, and short-term financing needs of small and medium-sized enterprises (SMEs).  In 2023, more than 72% of the 3 million newly added loan borrowers of MYbank got their business loans approved for the first time from a bank. It is to be noted that more than 60% of the SME clients of MYbank got loans with interest rates under 100 RMB, and the average loan size was RMB 72,000.

Mybank was the first to introduce the '310 model' for small and medium-sized enterprises (SMEs). The 310 model provides a zero-collateral business loan to small and medium-sized enterprises. SMEs can apply for the loan without any hassle as in less than 3 minutes one can apply for it through their mobile phone and get it approved in less than 1 second that too without the requirement of any human intervention.

Mybank was one of the first pilot private commercial banks that was founded in 2015. The bank was formed to serve small and medium-sized enterprises (SMEs) and farmers. MYbank was also the first Chinese bank to make its cloud-based core banking system. The bank does not have any physical branches.

Moreover, Mybank also uses AI-driven technologies and remote sensing to make credit services more convenient for farmers, adding to the risk-management tools. With digital loans, farmers don't have to deal with cumbersome processes or cumbersome paper documentation. This reduces the need for paper documentation making it hassle-free and easily accessible.