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Practicing inclusive finance to advance small and micro financial services

As a leading large-sized retail commercial bank in China, the Postal Savings Bank of China is positioned to serve the community, small and medium-sized enterprises, and Sannong (agriculture, farmers and rural areas) customers.

The Postal Savings Bank of China (PSBC) is committed to serve the most dynamic customer groups amid China’s economic transformation. From 1986 when postal savings services were resumed in China, to 2016 when PSBC entered the global capital market, it has transformed from a postal savings institution to a large-sized, state-owned retail commercial bank, and from a single holding company to a listed bank with diversified ownership.

At present, PSBC ranks sixth in terms of total assets among China’s commercial banks. It has more than one-sixth of all branches of China’s banking financial institutions and serves more than one-third of the country’s total population.

By the end of June 2018, PSBC’s outstanding loans to small and micro-sized enterprises with the total credit amount of Rmb10 million ($1.449 million) or less from one single account were Rmb519.22 billion, representing a net increase of Rmb54.32 billion or 11.68% compared to the end of last year. Loans to small and micro-sized enterprises accounted for 13% of its loan portfolio, higher than the average level of major peers.


On November 27, 2018, PSBC (1658.HK) held its 2018 Investor Day, themed “Lead By Strategy, Bank Through Retail” in Zhengzhou, Henan Province. It was the third such event since PSBC went public on the Hong Kong Stock Exchange in 2016. The bank introduced its implementation of the retail banking strategy, as well as its development goals and priorities.

PSBC President Lyu Jiajin said, in his opening speech, that to return to the original purpose and to serve the real economy, would be the main focus of China’s banking industry for the future development.

On the afternoon of the event, investors and analysts were invited to visit the West Zhongyi Road Sub-branch, under PSBC’s Henan Branch, and one of its corporate clients, the Haoxiangni Healthy Food company. As the client is one of the country’s leading enterprises in agricultural industrialisation, the Henan Branch of PSBC and the Henan Office of China Post Group have jointly served it with comprehensive financial services. PSBC offers corporate credit to Haoxiangni and financial services including loans, fund settlement, online banking, mobile banking and WeChat banking, to its upstream jujube merchants and farmers, and China Post Group provides postal and delivery services. Henan Branch’s financial service for Haoxiangni is just a microcosm of the effective implementation of the retail banking strategy by PSBC, while the services provided to the upstream jujube merchants and farmers showcased its small and micro-finance.

Regarding financial services to small and micro-sized enterprises, PSBC remains one of the leading financial service providers among China’s commercial banks, achieving coordinated development in terms of scale, quality and profitability, which effectively supports the overall development of the bank. It is estimated that by 2020, PSBC’s outstanding loans to small and micro-sized enterprises will exceed Rmb650 billion, and the bank is confident it will keep the quality of such loans at the current level.


PSBC is a community bank serving the public, a leader of financial services for small and micro-sized enterprises and an important provider of financial services for Sannong customers. PSBC has been dedicated to serving the national economy and people’s livelihoods, actively practicing the concept of inclusive finance, giving prominence to supporting the development of the real economy, and strengthening financial services for small and micro-sized enterprises, Sannong customers and remote areas.

PSBC has the largest network of branches in the world, with a total number of nearly 40,000, covering all mainland cities and 99% of county areas. More than 70% of these branches are located in counties or smaller administrative regions. In many areas, especially in some county areas, PSBC is the only national financial service provider and plays an irreplaceable role in providing inclusive financial services to customers.

President Lyu said that PSBC would grasp the opportunities arising from the implementation of the Rural Revitalisation strategy, give full play to the institutional advantages of Sannong Finance Department, and build a professional service system for Sannong customers. This would facilitate innovation and entrepreneurship by optimising small and micro financial services and increasing support for small and micro-sized enterprises.

At present, PSBC has been consulting with International Finance Corporation on selected businesses, achieving initial results for an agro-related loan App, an agro-related loan model, agricultural industry chains, customer segmentation of small-sized enterprises and credit process optimisation. More efforts will be put into their applications in the near future.

PSBC Vice President Yao Hong delivered a keynote speech entitled “Restarting for the Big Blue Ocean of New Retail”. She said PSBC would leverage on the synergy among different segments under China Post Group, to further promote business development, and deliver full-fledged services to customers. The bank would also make every effort to serve the Rural Revitalisation strategy, advance small and micro financial services on all fronts, and seize opportunities of consumption upgrade. It would improve service efficiency and standards and allocate financial resources to key areas and those of weakness. It would also speed up the application of big data and credit factory technology in financial services for small and micro enterprises and increase credit support to them.

“Standing at a new historical starting point, PSBC will stay true to its original aspiration of ‘providing financial support for the real economy’, to enhance its ability to serve the real economy, prevent and control financial risks, maintain sound growth by means of reform and innovation, so as to reward investors with high-quality development,” noted President Lyu.




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