Research On Financial Business Model Of Supply Chain In Commercial Banks

The traditional bank credit business focus on corporate financial data, however, transparency of financial information for SMEs is low and the social credit system is not perfect. So it is difficult for SMEs to obtain the necessary funds from financial institutions. With the development of China’s financial market liberalization and domestic financial industry, financial institutions are facing increasingly fierce competition and profit of the traditional business is gradually shrinking. In this case, commercial banks are required to actively engage in financial innovation, pioneering new type of business, win more customers and occupy a larger market share. For these reasons, the commercial banking system has innovated financing business model—Supply Chain Finance.However, the current Supply Chain Finance business in the development of China’s commercial banks are still in early stages, the supporting facilities are not perfect, there are still many flaws and shortcomings. Therefore, In this study, M Bank "1+N" Supply Chain Finance business model for the study, by comparing it with the SME credit model, draw Supply Chain Finance business model advantages and disadvantages. Advantages:enhancing the success rate of SME credit, improving credit approval efficiency and reducing bank credit risk. Disadvantages:credit approval of "1+N" Supply Chain Finance models exist imperfect; the process of credit approval is too cumbersome; the division of responsibilities is not clear. Based on the basis of the existing business model, this study provided new ideas for optimized design.