What they are more concerned about is that in this special year affected by the epidemic, the market operation environment is so severe, how does SPDB deal with it? Technology bank has been talking about it for so long, how is the effect
How can a joint-stock bank surpass a large state-owned bank? If you take a different approach to technology, its possible. Pan Weidong, President of Shanghai Pudong Development Bank, gave a thought.
Three years ago, the banks head office was staffed with 500 technicians, and by the end of this year it will have 5000. In the future, they hope to reach 10000 people.
One bank business model
One bank business philosophy is changing SPDB.
After reflecting on the risk events in recent years, pan Weidong, who has worked in SPD Bank for 15 years and is familiar with the banks various business processes, deeply feels the importance of one bank business model.
After the regional development to the National Bank, the head offices management of the branch and the head offices overall planning ability are totally different from the previous requirements. Pan Weidong said.
In the construction of customer-oriented business system, SPDB is trying to run one bank business thinking through it.
The challenge of customer operation is very huge, and the requirements are very high, so the head office is required to take the branch to operate the customer, rather than assign the task to the branch, and then the customer manager and salesperson of the branch and sub branch will operate the customer. Pan Weidong said that in recent years, the banks customer business ideas have changed a lot, not only the companys business, retail business and financial market business, all require top-down promotion.
For example, the companys business reform in recent years has formed a 1 + X strategic customer system for strategic customers of the head office and branches respectively. We require that through in-depth study of regional economy, industry characteristics and local differences, a clear profile of customer classification is formed from the top to the bottom, so as to make customer operation real. Pan Weidong said.
Wang Xinhao, deputy president and chief financial officer of Pudong Development Bank, also said that the bank has also made adjustments to the management structure of customer operation in recent years. In the past, it was set up as a product centered department structure, and now it is upgraded to an organizational structure with simultaneous emphasis on customers and products.
The adjustment of concept and structure has been reflected in business results. In the first quarter of this year, SPDBs business performance made steady progress, and its operating revenue and loan issuance kept growing. Compared with the same period last year, the amount of public loans increased by 120 billion yuan, and the balance of public loans returned to the first place in joint-stock commercial banks, reaching the best result in the past five years. At the same time, the customer base has been effectively consolidated.
Ten times of scientific and technological personnel in three years
In this respect, SPDB has long been exploring. In 2018, Shanghai Pudong Development Bank took the lead in proposing the open bank concept of apibank in the industry. In 2019, it will further expand the scale of API scenarios, enhance the influence of innovation scenarios, and promote the rapid growth of the overall scale of the platform. By the end of 2019, 400 API services have been released, 210 partner applications have been connected, and the number of API transactions has exceeded 160 million.
It is understood that in order to further promote the scientific and technological content of the bank, the 14th five year plan being formulated by SPD will place more emphasis on the investment and application of science and technology.
But in the construction of financial science and technology team. Pan Weidong said that in terms of staffing, the technological strength of the head office of SPDB is expected to exceed 5000 by the end of this year, compared with 500 three years ago. I expect that in the future, the number of science and technology personnel of SPD will reach 10000, or at least 20% of the employees of SPD.
The outbreak in the first quarter of this year tested the role of the banks technology transformation in its business. In January and February of this year, only about 20% of offline outlets of many banks were open normally, while during this period, the retail business of SPDB increased instead of decreasing.
At present, SPDBs retail business is mainly online, which is not strongly dependent on offline outlets. Pan explained that the bank has fully formed an online closed-loop model of retail business.
A series of successful digital practice is changing the bank to lay physical outlets to achieve the traditional model of customer acquisition.
He revealed that the functions and positioning of offline physical outlets of the bank will shift to sales and services of complex businesses. The bank will further clean up offline physical outlets. It is understood that in the near future, the bank will launch a new network in Shanghai for small and medium-sized enterprises, with automation as the main service and human services as the auxiliary.
How to balance profits and dividends
As a joint-stock commercial bank, marketization is our gene. We will give full consideration to national strategy and shareholders interests. . Wang Xinhao said that the company has gone through internal research and will soon form a specific response plan.
According to Wang Xinhao, under the background of giving up profits, the asset price of the bank will be lowered while the cost of the liability side will not be reduced simultaneously, which will narrow the net interest margin and the net interest margin of the bank, thus having a negative impact on the banks revenue. At the same time, affected by the epidemic situation, many social subjects, especially small and medium-sized enterprises, are facing operational difficulties, and the provision for impairment in the banking industry will increase roughly.
The key to our preliminary plan is to consolidate the customer base while reducing the cost of liabilities. This is also a very important strategic task for SPDB this year. Wang Xinhao said.
According to the 2019 profit distribution plan of Shanghai Pudong Development Bank, the bank will distribute cash dividends of RMB 6 (including tax) to all ordinary shareholders for every 10 shares. As a result, the proportion of cash dividends increased to 30.80%. This is the first time in five years that the banks cash dividend level has returned to 30%. Mr Wang said that the banks endogenous capital replenishment would face challenges under the policy tone of making profits. For example, whether the 50 billion convertible bonds can meet the conditions for triggering the conversion of shares? We have made a lot of plans from the operational level to try to achieve it within our capabilities. To solve the problem of whether the current dividend level can be sustained, from the perspective of operation, on the premise of meeting the regulatory requirements, while the endogenous capital supplement and exogenous capital supplement can meet the development needs, we will make shareholders enjoy the operation results of SPDB as much as possible.. Wang Xinhao said. Source: Yang Qian, editor in charge of Shanghai Securities News_ NF4425
Mr Wang said that the banks endogenous capital replenishment would face challenges under the policy tone of making profits. For example, whether the 50 billion convertible bonds can meet the conditions for triggering the conversion of shares? We have made a lot of plans from the operational level to try to achieve it within our capabilities.
To solve the problem of whether the current dividend level can be sustained, from the perspective of operation, on the premise of meeting the regulatory requirements, while the endogenous capital supplement and exogenous capital supplement can meet the development needs, we will make shareholders enjoy the operation results of SPDB as much as possible.. Wang Xinhao said.