Author: sunline

On May 19, 2023 Alibaba Cloud Financial Innovation Summit was held in Hangzhou. With the theme of “New Origin, Create the Future”, this conference focuses on the innovation and practice of finance and cloud computing, discusses the digital productivity of the future financial industry with industry elites, industry pioneers and technology decision makers, and redefines the next generation of financial services. As an all-round partner of Alibaba Cloud, Sunline Technology presented products such as cloud-native financial core joint solutions at the event.

 

In the digital age, the underlying logic of core application construction in the financial industry is being reshaped. For super-large-scale and super-complex modern financial core applications, the core reconstruction project is not just a simple replacement of technical architecture, but also requires a deep integration of business planning and IT planning to implement upgrades and implementations in an agile and iterative manner. From the traditional technical architecture to cloud-native and other brand-new technical architectures, creating an independent and innovative enterprise-level technology platform has become the choice of more and more financial institutions.

 

At this conference, Sunline Technology focused on the theme of “intelligent exploration of cloud-native financial core and implementation process”, and demonstrated the cloud-native financial core joint solution based on new architecture, technology and path polishing. The solution is based on the cloud-native concept, enterprise-level implementation process, Sunline Technology’s cloud-native digital productivity platform, and Ali Financial Cloud’s family bucket products. It can provide “enterprise-level business modeling, domain-level application planning, unitized architecture design, lossless Cloud-native high-availability digital productivity of “disaster recovery” realizes the financial core’s goal of “born in the cloud and grows in the cloud”, leading the rapid innovation of financial scenarios.

 

Since Sunline Technology and Alibaba Cloud reached a comprehensive cooperation in 2022, the two parties have jointly established a special technical team to work on Sunline Technology’s cloud-native digital productivity platform, core system and Alibaba Cloud SofaStack, cloud-native distributed database, “Feitian” cloud technology base, etc. In-depth docking in various fields aims to jointly create cloud-native core key capabilities, and continue to promote the transformation and upgrading of the core system of the financial industry to cloud-native distributed.

 

At present, the construction of the financial core is in a critical period of industry transformation. This process requires the cooperation of financial institutions and technology manufacturers to jointly build and create with an open mind. As a leader in China’s financial technology, Sunline will continue to work with Alibaba Cloud to innovate and inject core momentum into the digital transformation of the financial industry.

Sunline successfully won the bid for the development and testing outsourcing project of a major state-owned bank. This is another milestone in the road of IT construction of Sunline, and it marks the successful completion of the layout of the state-owned big bank of Sunline.

 

Since 2020, the road of IT construction of Sunline Technology Co., Ltd. for state-owned big bank has started, leading technology and professional services all the way and became unstoppable. It has completed the transformation from a follower to innovator and leader in the breakthrough of the project. The growth and transformation of the company has become the strength to become the partner of the big bank. This project is the first time that Sunline has won the bid for the big bank, anchoring the sixth state-owned big bank that has made a breakthrough in the development of the big bank.

 

Sunline Technology pays attention to personnel training and technology inheritance. The high-quality and strong-technical hard-core team selected from multiple projects not only can work as a lone ranger, but also work as a team. The comprehensive management subsidiaries and the information technology construction of Jinke Company have injected innovative vitality. Sunline Technology will give full play to its core advantages of innovation and professionalism, fully and deeply participate in the informatization and digital deployment of major banks, and provide services for their digital transformation.

 

With 21 years of perseverance, Sunline Technology will continue to uphold the concept of innovation first and win-win for customers, relying on independent and controllable full-stack capabilities, profound industry insights, professional practical experience, enduring innovation vitality, and comprehensive capabilities The elite team provides customers with high-quality and high-standard digital financial services, and continues to make efforts in the field of financial IT to strive for the first place.

Global leading banking software and technology services company, Sunline co-hosted Digital Banking Forum Thailand 2023 with Huawei Cloud, the fastest growing cloud in APAC. The Forum held in Siam Kempinski Hotel, Bangkok on May 12, 2023, has gathered many finance industry leaders, industry analysts, partners, IT and thought leaders to discuss the development strategies, future industry trend and how banks in Thailand can capture the real value from Cloud and Digital Transformation through Core Modernization.

 

Avy Lim, Sunline Holding’s Deputy Chairman opened with a keynote. “Digital world has evolved at a phenomenal rate and resulting the banks and financial institution to transform their practices and customer journey through the trendy technology and transform the way they need to interact with their customers to stay competitive,” she said. “With such a rapid paced change, it become a challenge for the bank to develop a strategy and innovation for “brandings” instead of just follow the trend to satisfy bank’s internal expectation”.

 

“we aims to explore ways to manage integration of digital strategies, technology execution and its measurement”

 

Welcome Speech By Avy Lim – Deputy Chairman of Sunline Holding

K. Sutee, Deputy MD of Sunline Thailand also shared the insight of the industry trend in Thailand. It was followed by Ken Siew, CSO of Sunline Holding. He addressed the strategy and solution how the core banking modernization journey in digitizing operations and building digital platforms in distributed architecture can helps to visualize, and aggregate data. This is important in laying the foundation for digital transformation to become autonomous, secure and controllable

 

K. Sutee – Deputy MD of Sunline Thailand Sharing The Trends & Insight in Thailand

Ken Siew – CSO of Sunline Holding 

The two keynotes were followed by a panel discussion about the challenges from the emergence of the digital / virtual bank business vs incumbent bank and the key preparation points for digital banking. The panelists included K. Voranuch D., Exec.Chairman of KBTG, Dr. Chawapol J., President of Huawei Thai, K. Boonsom J., partner from Deloitte and also Avy Lim Deputy Chairman from Sunline Holding

Panel Discussion : (L) to (R) : K. Sutee, the moderator of the panel discussion, K. Boonsom J., partner from Deloitte, K. Voranuch D., Exec. Chairman of KBTG, Avy Lim, Deputy Chairman of Sunline Holding and Dr. Chawapol J., President of Huawei Thai

K.Surasak from Huawei Thailand’s Cloud CTO also shared his view  about Huawei latest cloud solution. The summit is ended with the new era of collection system topic, shared by K. Orasa, the CEO of OSD

 

K. Surasak – Huawei Thailand’s Cloud CTO

K. Orasa – OSD’s CEO and team 

Strategy and technology always work hand in hand and with 20 years of rich experience in China’s FSI industry and seven years of global business development, Sunline Solution has been upgraded to adopt the latest cloud native architecture and modular design, supports the most current digitization features in the market such as Open Banking, BNPL, Embedded Banking, Islamic Digital Banking, etc.

K. Prapan – Sales Director of Sunline Thailand Giving Closing Remarks

Sunline, Huawei and strategic partners who co-hosted the event, demonstrated their support to the concept of Bank Digitization through actively investing in the construction of joint solutions to help banks bring new capabilities to the global market more quickly and remain top performing. The continuous collaborations between the parties will bring greater innovation to the Thailand market, helping the financial industry in the country to accelerate their digitization journey.

Recently, the 2023 Tencent Cloud Core Industry Partner High-Level Communication Conference with the theme “Win-Win Cooperation and Going Far Together” was held in Tencent Binhai Building. Sunline Technology was invited to attend, and by virtue of its excellent performance in the process of close cooperation with Tencent over the years, Won the “Best Practice Award for Key Application Localization Construction” and “Tencent Cloud Database TDSQL Product Deep Integration Solution Partner” two awards.

  

Since the cooperation, the two parties have focused on the field of financial technology, actively expanded the dimension and breadth of cooperation, jointly launched the distributed core system & Tencent TDSQL joint solution, jointly pioneered the field of credit innovation in China’s banking industry, and created the first domestic bank core system software and hardware Self-controllable, the first traditional banking core business system that uses domestic databases as a benchmark project, and has been successfully put into production in many banking institutions.

  

Since its establishment, Sunline Technology has always regarded “independent innovation” as its core gene, and shouldered the independent and controllable mission of national financial information construction. In 2023, the development of Information Technology Application Innovation Industry is at the right time. Sunline Technology will continue to strengthen technology, improve products, create ecology, and improve services, continue to contribute to the development of the information security industry, and create an increasingly prosperous in Information Technology Application Innovation Industry pattern with ecological partners.

Recently, the Ministry of Finance issued the <<Interim Provisions on Accounting Treatment of Enterprise Data Resources (Draft for Comment)>>, which intends to standardize the accounting treatment of enterprise data resources and strengthen the disclosure of relevant accounting information. This presses the accelerator key for the “entry” of data assets, and will also greatly activate the vitality of data elements.

In the era of digital economy, data has risen to be a core factor of production and has become an important strategic resource of the country. Unleashing the value of data and cultivating a new engine for the digital economy is an important signal released by the national “14th Five-Year Plan” digital economy development plan, “14th Five-Year Plan and 2035 Long-term Goal Outline” and “Twenty Points for Data” in the past two years .

 

Data resources are undoubtedly the new blue ocean, and there is a huge room for imagination of assets that can be mined. As a leader in digital construction, the financial industry plays a “blood” role in promoting the application of data elements. As the digital transformation of banks enters the deep water area, how to use emerging technologies to activate the potential of data elements and fully release the value of data elements has become an important and urgent issue.

 

As a leading enterprise in domestic financial technology, Sunline Technology has a deep accumulation in the field of financial big data. It can provide consulting services on data architecture, data assets, and data governance, as well as construction plans for data platforms, data middle platforms, and lake warehouses. And the implementation of data applications such as regulatory submissions, risk applications, and customer relationship management; at the same time, continue to explore the application of cutting-edge technologies such as AI, cloud computing, and blockchain in the financial industry, and focus on continuously polishing corporate financial solutions with the latest technologies. Among them, the use of AI technology, combined with data analysis and data modeling, to realize the mining of data value in the financial industry is one of the forward-looking layouts of SunlineTechnology.

 

Based on this strategic layout, Sunline Technology has created a dedicated business team for data mining and AI projects. The team’s technical strength is hard-core, deeply integrating AI modeling technology, including NLP (Natural Language Processing), RPA (Process Robot) and other technologies with the company’s data application solutions, to create risk warning modeling, customer marketing models, intelligent Various AI application scenarios such as customer service and intelligent operation. After long-term business development, Sunline has made great achievements in the field of AI and data modeling, and has provided data analysis and mining modeling services for Postal Savings Bank, China Merchants Bank, China CITIC Bank, Ping An Bank and other financial institutions.

 

While continuing to focus on the application and implementation of AI technology, Sunline Technology has also actively launched joint explorations with partners in promoting the ecological construction of AI applications, and has completed the docking with many large-scale AI analysis frameworks and tool products in China. As early as 2021, Sunline and Huawei’s AI analysis framework MindSpore and AI one-stop development platform ModleArts have demonstrated each other and promoted them in the market.

 

Based on the MindSpore framework and the world’s leading natural language understanding and key big data technologies, Sunline Technology has independently developed big data products such as smart marketing platforms, smart risk control platforms, and data asset management platforms. The natural advantages of processing and storage technology, combined with knowledge map, data mining, natural language processing and other technologies, according to customer needs, with rich business scenario models, in-depth analysis and mining of data value.

 

 

 

At present, the data element market is developing at the right time, and there are more and more application scenarios of data modeling and AI for banks. Sunline Technology will integrate innovation with “technology + data”, actively explore and promote the innovative application of AI technology in more financial business fields, use technology to empower financial services to improve quality and efficiency, and help financial institutions achieve high-quality development

Recently, Guangzhou Bank’s credit card customer relationship management (CRM) system was successfully launched. The project is led and implemented by Sunline Technology, aiming to implement the “customer-centric” marketing service concept, and help Guangzhou Bank’s credit card business to achieve refined customers from customer management, product management, sales management, marketing management, customer analysis, etc. manage. At the same time, the system uses domestic software and hardware from servers, operating systems to databases, middleware, and browsers to build a safe and controllable data environment, becoming the first pilot project of Guangzhou Bank Credit Card to realize full-stack innovation!

 

With the advent of the digital age, the banking industry is facing dual pressures from both inside and outside: externally, Internet finance companies have built a highly loyal customer base through extreme product experience and services; internally, the market is becoming saturated, and financial products are at the same Qualitative intensification, leading to user experience less than expected. Faced with a sharp increase in the value utilization needs of customer resources, the “customer-centric” service competition has begun, and customer relationship management will be more deeply integrated into the entire process of bank operations than ever before.

 

Under the new situation, with the rapid development of Guangzhou Bank’s credit card business, the customer base and customer range continue to expand, the level of refined customer management is insufficient, the ability to operate scenarios needs to be improved, and the ability to support digital needs to be strengthened… Various business pain points hit , building a CRM system has become an inevitable choice for Guangzhou Bank’s credit card. At the same time, as the credit innovation transformation of the financial industry enters the “deep water area”, the Guangzhou Bank credit card has also pressed the “acceleration key” for the transformation of credit innovation. Take a solid first step.

 

For 21 years, Sunline Technology has adhered to the management direction of independent innovation, created a complete set of big data products with independent intellectual property rights, and actively built a safe and controllable ecosystem based on the entire financial scene. Solutions, and jointly build a benchmark for IT Application Innovation Industry. The marketing team of Sunline Technology integrates the advanced concept of “big data + Internet”, independently researches and develops the customer relationship management (CRM) system, introduces intelligent marketing, scene marketing, event marketing, Internet finance, Internet marketing and other modes, and identifies high-quality and loyal customers. , to provide personalized, differentiated and diversified service experience to achieve the goal of discovering potential customers and retaining valuable customers. At present, it has provided services for Ping An Bank, Minsheng Bank, HengFeng Bank, Ningbo Bank, Guangzhou Bank, Guiyang Bank and Zhengzhou Bank , Jiangxi Bank, Jiangnan Rural Commercial Bank, Qingdao Rural Commercial Bank and other nearly 30 financial customers have built CRM/smart marketing/operation management systems.

 

In the credit card CRM system project of Bank of Guangzhou, Sunline Technology built a full-stack, safe and controllable customer management system for customers based on the bank’s IT credit creation plan, including work platform, customer information view, and customer acquisition management 14 major functional modules, such as customer allocation and transfer, and customer follow-up management, support standardized management and operations such as customer management, customer marketing, and customer service, helping banks gain insight into customer value and characteristics, and form a closed-loop support capability for the entire process of the customer life cycle:

 

Full-stack IT Application Innovation Industry builds a digital security base

 

Equipped with a full-stack IT Application Innovation Industry platform, it realizes localization from the bottom server to the upper browser, and is well compatible with Haiguang, Kirin, Dongfangtong, ZTE, 360 and other domestic leading software and hardware manufacturers, and runs stably, fully guaranteeing data security;

Comprehensive customer 360 degree label

 

Sort out basic tags, including demographic attributes, behavioral attributes, user classification, business attributes, etc.; at the same time, design derivative tags for scenarios, such as “forgotten repayment family”, “job seekers” and other scene tags to create a 360-degree customer view portrait System, so as to improve the bank’s precise service and management capabilities for customers;

 

Marketing Process Automation Management

 

Support batch processing functions of business opportunities such as automatic dispatch, mandatory dispatch, closing dispatch, etc., and can edit the distribution rules. At the same time, the business opportunity manager can deal with timed-out business opportunities or abnormal business opportunities accordingly, and control the effect of branch dispatch orders based on the monitoring page , and provide functions such as timeout reminders to assist in the processing of business opportunities;

 

Flexible configuration of process management

 

Through the flexible configuration and management of process nodes, the efficient transfer of system tasks between different positions and different businesses can be realized, and the online interconnection of banking business can be promoted;

  

Break through related system barriers

 

Effectively guarantee the organic combination of direct sales channels and other channels, and maximize the value of channels. Taking the opening of the telemarketing system as an example, the potential customer data is obtained from telemarketing, and is intelligently assigned to the account manager based on the CRM potential customer rules or manually assigned to the account manager to realize the automatic management of potential customers.

 

The transformation of financial credit innovation and digital construction are not achieved overnight. Sunlight Technology will adhere to the concept of openness and win-win, innovation and striving to advance hand in hand with ecological partners. At the same time, it will focus on its own advantages in the financial industry to deeply understand the customer needs and markets of financial companies structure to help it determine the direction of differentiated transformation and realize refined customer relationship management that meets the requirements of the new era.

Sunline‘s in -depth Joint –Stock Business Banking Project has won the Fintech Award

 

Recently, the “Financial Technology Development Awards” hosted by the People’s Bank of China and the Securities and Futures Commission was announced. A domestic shareholding bank audit and supervision of the Huiyan Platform Project won the second prize!

 

The “Financial Technology Development Award” is the only ministerial science and technology award in the domestic financial industry. As one of the contractors of the award -winning project, Sunline’s participation in the development and implementation of auditing data markets, auditing clues models, smart auditing portraits, as well as smart transformation helped the bank achieve high-quality development.

 

In recent years, the joint -stock bank has attached great importance to the digital transformation work of auditing and supervision, with intelligent system construction and tool innovation as an important starting point. In 2018, it officially launched the planning and design of the audit and supervision of the Huiyan platform. After 4 years of polishing and quenching,  a new iteration from a single portrait perspective from a single portrait to a multi -dimensional intelligent audit portrait perspective is achieved

 

Smart audit portraits are spread out in “face”, and the overall situation of the entire bank is highly summarized, presenting multi -dimensional portrait information such as “institutional perspective”, “employee perspective”, “IT perspective”, “visual angle”, “retail perspective”; Big data, artificial intelligence technology and algorithms have built the industry’s first audit portrait application, supporting users to carry out index analysis modeling, and assisted the formation of systematic reports to enhance continuous tracking and dynamic review capabilities. Through the construction of the project, the audit portrait application of the joint -stock bank has been accelerated from traditional auditing models to the new model of continuous audit.

 

Since the beginning of 2018, the results of the projects jointly built by Sunline and the joint -stock bank have gained a lot of achievements. They have won a total of 7 “Financial Technology Development Awards” hosted by the People’s Bank of China and the Securities Regulatory Commission, covering the core, risk control, finance and other different differences In the field, 4 of them are deeply involved in Sunline Big Data Risk Team. The award demonstrates the innovative results of Sunline and the joint -stock bank in the field of financial risks, and fully demonstrate the in -depth insights of the two parties based on the practice of continuous audit and smart auditing.

 

In the future, Sunline hopes that in the field of compliance auditing and risk, it will continue to work with customers to expand more intelligent exploration and build a more intelligent platform. Under the wave of digital transformation of the overall industry, the supervision requirements of the outside world are greeted by the outside world. Protection and create more benchmarks in the industry!

Recently, the Central Committee of the Communist Party of China and the State Council issued the “Overall Layout Plan for the Construction of Digital China” (hereinafter referred to as the “Plan”). The “Plan” clearly states that building a digital China is a strong support for advancing the digital age and building new national competitive advantages. The release of the “Plan” has important guiding significance for the digital transformation of all walks of life and the construction of innovative and advanced digital infrastructure.

According to the “Plan”, the construction of Digital China will be laid out according to the framework of “2522”, namely:

1) Consolidate two foundations: digital infrastructure and data resource system

2) Promote the deep integration of five in one: digital technology and economic, political, cultural, social and ecological civilization construction

3) Strengthen two major capabilities: digital technology innovation system and digital security barrier

4) Optimizing two environments: the domestic and international environment for digital development

Based on the “Overall Layout Plan for the Construction of Digital China”, Sunline combines years of rich implementation experience and profound insights in the industry. Compared with other industries, the digital transformation of the banking industry has sufficient driving force, abundant talents, a sound foundation, rich in business cases and agile in implementation.

-Sufficient driving force: There are many banking business lines with natural data characteristics, which makes the business benefits brought by digital transformation to the banking industry relatively clear, which also promotes the adoption of digital technology by banking financial institutions.

-Abundant talents: the decision-makers and employees of banks are generally of high quality, and generally able to correctly understand the potential value of digital technology, thereby promoting the process of digital transformation.

-Sound foundation: Banks have a good foundation in terms of IT infrastructure construction and talent pool, which has laid a solid foundation for the rapid advancement of digital transformation.

-Rich business cases: Banks, especially commercial banks, have a very broad space for digital technology development and application due to their huge organizational structure, numerous business lines, complex business processes, and the urgent need to improve business precision operations and bank customer experience.

-Agile implementation: Banks have been deploying for many years in the direction of digital transformation and innovation, and have formed a set of agile construction ideas. Under the guidance of the new “Overall Layout Plan for Digital China Construction”, they can complete the implementation and deployment faster.

Therefore, in the process of China’s industrial digital transformation, the digital transformation of the banking industry is of special significance.

Sunline has been focusing on technological innovation for 21 years, and has 10+ branches around the world, with more than 6000 employees, and its business covers 10+ countries and regions. Due to its deep business understanding, leading technical capabilities, abundant delivery personnel, and rich implementation experience, it has created a full-stack leading solution covering digital finance, smart finance, smart finance and other businesses, and has long been leading the IT solution market for China’s financial industry.

As a pioneer of digital transformation, Sunline has been deeply involved in the banking industry for a long time. It has the most complete product line in the industry, including new core, a full set of business applications, a full set of data management, and a full set of technology stacks, which can meet the needs of the overall digital transformation with a full set of product systems, tested by the market. In the future, we will continue to deepen the application of digital technology in the financial field by embracing big data, cloud computing, blockchain, AI intelligence and other technologies. From talent reserve perspective, technical product layout, end-to-end services, products and solutions exists with the goal of creating future banks with customers, expanding the bank’s digital ecosystem and helping banks to carry out comprehensive business transformation. With excellent services, solutions, delivery, and R&D as the core, the fulcrum is to comprehensively build an enterprise-level “smart + agile” service framework as well as an independent and self-reliant digital technology innovation system for banks, realizing a credible and controllable digital security barrier in the construction of digital China.

After 18 months, the new generation core system project for Bank of Jilin has been successfully put into operation. The project group reconstructed 12 important information systems for the entire bank, realizing optimization and upgrading of the overall IT architecture and marking the commencement of the digital and intelligent transformation journey for the Bank.

Since Bank of Jilin has fully launched the “Jixing Project” in 2021, Sunline’s project team acted as the “chief engineer” in the essential information system reconstruction of Bank of Jilin’s new data warehouse according to the main aim of the Bank to unify data standards, creating a powerful technical platform for massive data computing and complex model processing, realizing comprehensive centralized collection, processing, storage and sharing of data, and comprehensively, timely and accurately displaying the operation status and trends of key systems of the head office as well as branches, ultimately maximizing the value of data mining for Bank of Jilin.

As an important part of the New Generation Core System Project, the data warehouse undertakes the key role of precipitating standardized data assets, exerting data potential, and building a high-performance and high-availability data platform.

Breaking through data barriers, achieves unified data collection and storage services

The new data warehouse adopts a five-layer model architecture. With clear layers and close connections, model transformation is achieved according to the characteristics of multiple legal persons for Bank of Jilin, realizing the splitting of multi-legal person data. At present, the platform has realized data warehousing of more than 50 upstream business systems, and provided data services and data interface processing services for more than 30 systems, effectively meeting the needs of various analytical businesses and applications.

Implement data standards and improve data sharing capabilities

Through the integration of the Bank’s data management and control platform, clearing barriers to data sharing across systems and business domains through combining data standards, realizing standard mapping of data warehouses that follow bank data governance management specifications and requirements in the process of data layering and data processing, as well as conducting data standardization processing based on unified metadata management requirements and data quality inspection.

Empower business applications and promote digital transformation

Through the construction of a new data warehouse, the data application capabilities of Bank of Jilin’s five major business pillars have been comprehensively improved to timely and accurately display the business operation status of the head branch via the management cockpit system, ultimately supporting senior management decisions. In lieu with the wave of information and innovation, the Bank of Jilin has taken advantage of the momentum and built a new data warehouse platform based on Sunline’s independent and controllable data warehouse solutions and supporting products, realizing the controllable full-stack technology from the underlying database to the upper data application portal and comprehensively ensure data security.

Database: Domestic MPP database is adopted to support large-scale data storage and processing.

Data collection: With the use of Sunline data exchange platform, data sharing and use between various systems through centralized management and other means.

ETL development: Sunline data development platform is adopted to ensure batch development, process standardization, operation visualization, and simplified maintenance.

Task scheduling: Sunline enterprise-level scheduling platform is adopted to efficiently manage batch tasks in the data warehouse, shortening the batch time window while reducing operations and maintenance costs.

In the future, Sunline will continue to work with more banks to further expand the leading practice of financial data platform system. Through the strengthening of independent and controllable technologies and its applications, the company will enhance the core driving force of financial technology innovation and ultimately lead the development of the industry.

In 2022, the Digital Currency Electronic Payment (Digital Renminbi) is the hottest topic in the digital economy. From rural revitalization to Digital Winter Olympics, from supermarket retail to tax payment pilots, the application scenarios of Digital Renminbi are constantly being enriched, the resulting innovation needs and industrial iteration opportunities have also become the focus of attention.

According to statistics, there were 18 financing incidents in the digital currency industry from 2021 to 2022, with a financing amount of several billion RMB. Reporter from the Technology and Finance Magazine combed through the announcements of relevant financial technology listed companies and found that many companies have already voiced their insights on the Digital Renminbi businesses on their investment platforms and has participated in the Digital Renminbi Red Envelope Distribution Projects of many banks. Global Infotech announced that the company has Digital Renminbi and innovation-led related technical reserves. The person in charge of Sunline’s related business also said in an interview with Technology and Finance Magazine that the company has assisted financial institution to participate in the application and promotion of Digital Renminbi in many instances, and developed Digital Renminbi wallet products for cooperative banks.

Reshaping the payment services landscape

According to the statistics of the Central Bank’s Data Research Institute, as of August 31 2022, the Digital Renminbi pilot has expanded from the original “10+1” pilot area to 23 areas in 15 provinces, exceeding 360 million cumulative number in transactions and reaching RMB 100.04 billion in amount.

Riding on the bandwagon, the stock capital market has also seen growth. In addition to being extremely active in the primary market, Digital Renminbi related concept stocks are also highly sought after, making stock capital a growing secondary market. At the beginning of 2022, related concept stocks have received more than ten consecutive limit increases, and the optimistic expectations of the main funds for the Digital Renminbi was seen.

In the view of Luo Zhuan, Marketing Director of Sunline’s Digital Banking Business Department, most commercial banks and operating institutions are currently only collaborating with the Central Bank to do preliminary pilot tests.

Once the Digital Renminbi is piloted or promoted on a larger scale, there will inevitably be an influx in Digital Payment scenarios, resulting in opportunities for financial technology companies in the industry.

“In the process of Digital Renminbi innovation, users’ dependence on channels will continue to decrease, resulting in the reshaping of the payment service landscape.” states Luo Zhuan on the reason for the early deployment of capital.

In the past ten years, the rise of e-wallets represented by WeChat Pay and Alipay has broken the model of China’s payment industry chain, and gained a huge share of it. However, as a non-cash payment method, Alipay, WeChat Pay, and bank cards need to be unified through a clearing agency to realize the unification of capital flow and cash flow, and the income of these players comes from the handling fees paid by users.

As a legal currency in the form of payment and settlement, the transfer of Digital Renminbi can be completed directly between consumers and merchants without the participation of clearing agencies, which means that the payment chain will be greatly shortened and handling fees will be removed. With the reshaping of the existing payment landscape, the financial technology industry will also undergo major changes.

In this regard, Sunline has a long-term plan and has made relevant technical reserves. Luo Zhuan said that the strength of Sunline is mainly to carry out system construction for banks and build a Digital Renminbi acceptance environment.

Based on the company’s 20 years of experience and technical accumulation in the construction of the core banking system and payment system, as well as the company’s knowledge in Digital Renminbi technology strategies and application scenarios, Sunlight has partnered with a number of banks to develop Digital Renminbi wallet products through R&D technology integration with our customers, offering an end-to-end Digital Renminbi Wallet Platform with comprehensive solution and implementation capabilities.

From the perspective of scenarios and technologies with enriched application scenarios of Digital Renminbi, the payment transactions must be able to support high frequency and concurrency, which means that the promotion and use of Digital Renminbi requires seamless communications and flow of relevant banking systems.

Luo Zhuan have provided an affirmative answer as to whether Sunline has made long-term preparations for this, stating “Digital Renmimbi is a system with very large business traffic in the future. When Sunline is designing products, we have already considered the need for high-performance and high-concurrency of banks in the next decade or so. With forward-looking considerations, our solutions will be able to undertake the explosive growth brought about by the Digital Renminbi.”

Expanding special application scenarios

As mentioned above, the reason why the cumulative turnover of Digital Renminbi exceeded the 100 billion mark is due to the continuous expansion of Digital Renminbi application scenarios. Up to now, in addition to general scenarios such as daily consumption and closed pilot projects, various special scenarios such as consumption red envelopes, government subsidies, special funds, pre-payments, etc. has been created. The Smart Contract technology supporting these scenarios has also become the key layout of many financial technology companies.

In fact, Smart Contracts did not immediately become the focus in the initial stage of Digital Renminbi development. In this regard, Liu Mingjing, Technical Director of Sunline’s AI Technology Development Department, explained that the Digital Renminbi has only done basic scenarios before the pilot, but its development on the B side is not enough to rely solely on traditional payment scenarios. When entering the innovation scenario, it largely needs to rely on Smart Contract technology to complete.

The application of Digital Renminbi Smart Contract Technology is to use technical means to prevent the possibility of prepaid card funds being misappropriated by setting payment restrictions on specific Digital Renminbi, such as specific scenarios, payment conditions, and payment amounts.

Specifically, in the field of prepaid fund management, Smart Contracts can effectively prevent fund misappropriation and achieve transparent management, by taking into account existing business models. In the field of targeted payment such as financial subsidies and scientific research funds, Smart Contracts can monitor payment purposes and improve the efficiency of government fund use. In the field of fund settlement like fund collection and intelligent account splitting, Smart Contracts can solve the compliance issues of payment transaction processing, improve the accuracy and automation level of fund processing, as well as reduce manual processing errors and risks.

“At present, the application of Smart Contracts is still in early stages of exploration. The Central Bank has not opened the interface of Smart Contracts. Most enterprises are also in a ‘wait-and-see’ state. The overall technology has yet to reach a large-scale operation.” Liu Mingjing also shared that the advancement of Smart Contracts depends on the Central Bank Data Research Institute to provide platforms and development interfaces, formulate basic rules, and powerful institutions to develop various types of Smart Contract access, and whether it can be widely applied depends more on whether a credible and open ecosystem can be established.

“The application of Digital Renminbi Smart Contract Technology is worth exploring and promoting. Sunline has carried out a framework for more than a year, and has applied for several related patents. The AI Department has also independently developed a Smart Contract Generation System, which can be used by banks to provide customers with a digital twin robot to carry out digital analysis, evaluation and negotiation of the entire loan process.” Liu Mingjing added, saying that Sunline plans to use Smart Contract Technology to improve the process of smart account sharing, so that the ownership of consumer funds is clearer and guaranteed. The scenario of timely and automatic transfer of funds relies on credible information to realize the implementation of scenarios such as digital operations as well as digital marketing of merchants and banks.

Responsibilities of all parties are still unclear

As a participant and observer of financial technology for many years, Yang Xiaoqiang, Deputy President of Sunline’s Digital Banking Business Headquarters, is also very optimistic about the prospects of the Digital Renminbi, but he also voiced some doubts about the development of the industry – What is the role of operating institutions in the development of the Digital Renminbi?

“In the past few years, we have found some issues while partnering with customers in Digital Renminbi projects, with the biggest being imperfect laws and regulations. The relationship between the rights, responsibilities and interests of all parties are not clear, slowing the motivation of the commercial banks in promoting Digital Renminbi. “

Yang Xiaoqiang also added that The People’s Bank of China has identified 10 designated operating institutions, including the six major state-owned banks (ICBC, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, Postal Savings Bank), MYbank, WeBank, China Merchants Bank and Industrial Bank and the different arrangements of relationship between the Central Bank, operating institutions and commercial banks may have different effects and have an impact on the development of Digital Renminbi.

He explained that under the current model, if a commercial bank that is not a designated operating institution wants to develop its Digital Renminbi business, the bank needs to connect to the port of the designated operating institution. Firstly, the interface is limited, and commercial banks may not be able to satisfy customers in the short term. Secondly, commercial banks have to provide their customer identity and business data to operating institutions, which may discourage the enthusiasm of non-operating institutions to work with Digital Renminbi, putting a roadblock to the development and circulation of Digital Renminbi.

With the further development of Digital Renminbi, how operating institutions balances its relationship with other commercial banks in the process of performing its duties, how a certain amount of income to ensure smooth operation is obtained, and what restrictions and regulations should be in place have become issues worth exploring.

“The rules have been set, everyone’s doubts have been dispelled, and various innovations would soon be expected,” said Yang Xiaoqiang.

Since the COVID-19 pandemic, the global digital transformation and digital currency research and development have both pressed the fast-forward button, adding “wings” to the development of financial technology companies. In order to seize the opportunity, Sunline has established a subsidiary in Changsha that serves Digital Renminbi related application scenarios to provide banks with Digital Renminbi Scenario acceptance construction and development services.

While expanding its territory to other countries through “Belt and Road”, China has recently received an invitation from Thailand’s Financial Services Authority to advise the country on their digital currency business operation models and other aspects. The journey of overseas venture for Chinese Fintechs is accelerating.