Shentu Qingchun: "Golden Chain Alliance Commercial Bank Collateral Blockchain" project released

On the afternoon of September 21, the 2016 Shenzhen Financial IT (Banking) Industry Exchange Conference was successfully held. Representatives from the financial IT industry in Shenzhen and other parts of the country attended the meeting. The meeting was hosted by Zhou Tianhong, co-chairman of the Shenzhen Financial Information Service Association and general manager of the Information Technology Department of the China Merchants Bank Head Office, who delivered an opening speech. Then, Ma Zhitao, Chief Information Officer of Qianhai Weizhong Bank, delivered a speech entitled "IT Governance of Internet Banks", expounding on the IT governance of Internet banks from the perspective of Weizhong Bank's architecture and products; Ou Hong, senior manager of China Merchants Bank, delivered a speech entitled "Adapting to the Situation and Continuously Improving - The Road of IT Engineering Management of China Merchants Bank", indicating that China Merchants Bank follows the principle of innovation in stability in IT engineering management; Li Wei, general manager of the Internet of Things Division of AVIC Information, delivered a speech entitled "The Application of Internet of Things Technology in the Circulation of Important Bank Goods"; Li Jinlong, senior manager of China Merchants Bank, delivered a speech entitled "The Long Road, Seeking Up and Down - China Merchants Bank Blockchain Technology Research Progress Report"; Shentu Qingchun, executive vice secretary-general of the Golden Chain Alliance and CEO of Silver Chain Technology, delivered a speech at the meeting - the "Golden Chain Alliance Commercial Bank Collateral Blockchain" project was released.

Shentu Qingchun first introduced that mortgage refers to obtaining loans from banks, microfinance companies and other institutions by using assets such as real estate, land, and vehicles as collateral. The main process has the following six steps. (1) The lender submits a loan request to a bank, microfinance company, etc.; (2) The bank or microfinance company verifies the collateral and assesses the value of the collateral; (3) The bank or microfinance company verifies the collateral, assesses the collateral and then issues the loan to the lender; (4) The bank or microfinance company updates the manual status of the lender's collateral from the Housing Authority and other units; (5) After the mortgage contract expires, the lender repays the loan to the bank, etc.; (6) The bank, etc. releases its collateral to the lender. As shown in the figure below:

In this process, the collateral may be repeatedly pledged by the lender in different banks and small loan companies; the lender needs to manually check and verify the authenticity of the collateral and track the status of the collateral, which is time-consuming and inefficient; it is also difficult to know in time when the status of the collateral changes, such as seizure or depreciation. These are the pain points in the current collateral registration.

Therefore, the research team proposed a corresponding blockchain solution - collateral blockchain. In this solution, banks, small loan companies, vehicle management offices, land bureaus, housing management offices, and appraisal agencies form a consortium chain to ensure that all parties involved in the same business participate; and a unified blockchain interface, real-time data sharing; seizure, depreciation and other status can be known at any time; at the same time, all parties can easily and quickly check whether the collateral is mortgaged during the review without having to go to the site.

For lenders, without affecting the current business process, there is an additional safeguard, which reduces the lending risk, shortens the loan process, and does not worry about leakage after the data is desensitized and uploaded to the blockchain. For the government, after the data is desensitized, the status is made public on the blockchain, which makes government affairs transparent and is also conducive to the construction of big data; for lenders, the efficiency of lending and government is improved, which shortens the loan cycle of lenders, and at the same time, the security of lender information is guaranteed based on the blockchain.

Then, Shentu Qingchun explained that in terms of specific technical implementation, the collateral blockchain is developed based on IBM's Fabric blockchain platform. The entire system includes four parts: IBM Fabric blockchain platform, smart contract ChainCode, management backend and web frontend. Fabric ensures the permission system of the blockchain and the data consistency between nodes; ChainCode is used for business logic processing and data storage; the management backend performs user authorization and ChainCode updates and interactions; the web frontend provides an operation interface for banks, small loan companies and other institutions. At present, the solution has been successfully implemented, and Tencent Financial Cloud provides a free operating environment to provide services to small and medium-sized banks and small loan companies.

Operation interface effect display

Finally, Shentu Qingchun announced that in order to better promote this application, the collateral research team decided to contribute the application to the Golden Chain Alliance free of charge, so the current owner of the application is the Golden Chain Alliance; the Golden Chain Alliance will provide the application free of charge to alliance members; and will cooperate with more banks and small loan companies in Shenzhen and other regions to use it together, because only when lenders in the same region share data can the application achieve better use results.

Subsequent products will be further improved in four aspects: (1) institutional user registration and approval; (2) data import and query convenience; (3) data encryption and authorization; and (4) obtaining data from government agencies such as the Vehicle Administration Bureau, Housing Administration Bureau, and Vehicle Administration Office. The perfect combination of mortgage registration scenarios and blockchain will contribute to improving the efficiency and security of mortgage business, as well as big data statistics.

The project was proposed by Baosheng Rural Commercial Bank, and Yinlian Technology was responsible for the technical implementation. The prototype development of the project was completed on September 15, fully realizing the designed functions, and it was officially released on September 21.

Introduction of the members of the Collateral Research Group:

It was established in March 2011, initiated by Luoyang Bank and jointly established by eight non-bank institutions including Shenzhen Zhengjia Investment Development Co., Ltd. and Shenzhen Guangju Energy Co., Ltd. Headquartered in Shenzhen Nanshan High-tech Park, with a registered capital of 600 million yuan, it has been rated as a model unit for many times in the experience exchange among village banks in South China.

The company was founded in 2012 and officially changed its name to Shenzhen Yinlian Technology Co., Ltd. in March 2016. It provides financial institutions with a complete set of blockchain technology solutions, business consulting, training, development or outsourcing services.