Recently, Suning was praised for its “Blockchain + Internet of Things” financing platform for cars as excellent case of CITE 2019 Blockchain Innovation at the “China International Blockchain Technology and Application Conference 2009”. The platform integrates blockchain and Internet of Things technology to solve such dilemmas as lack of credible supervision, false information, insufficient risk control and narrow range of pledge in chattel pledge business.The measure has attracted wide attention in various industries.

In view of the lack of credible supervision for chattel pledge and inventory pledge financing business, Suning car financing platform uses blockchain technology to link business process data and alarming information without any third party organization. The platform can exchange credible data among fund providers, warehouse supervisors and cargo owners. At the same time, it uses sensors to conduct real-time monitoring on assets in the warehouse. Unified Internet of things platform conduct lifelong management for devices to ensure effective safeguard for pledge.

In order to ensure the accuracy and authenticity of pledge information, Suning Finance uses advanced technology to standardize, intellectualize and transform the pledge as blockchain. All business stakeholders can act as nodes of the block chain, through distributed access to the chattel pledge blockchain alliance, synchronously updating the pledge certificate information. In the scenario-based alliance chain, clients, regulators, insurers, quality inspectors perform their own duties and supervise each other, thus realizing the integration of information flow, logistics, cash flow and perception flow.

In the aspect of risk control, Suning Finance adopts video surveillance technology and AI to monitor the environment around the pledge. By identifying regions and the number of statisticians, it realizes the automation and intellectualization of risk alarming, effectively controls the moral risk of the warehouse managers in the process of cargo supervision, and supervises the self-theft or collusion of the financiers. Compared with the traditional mode that warehousing supervision enterprises unilaterally supervise the pledge, Suning Car Financing Platform enables financial institutions to participate in the supervision and management of the pledge. The accuracy and authenticity of the information of the pledged goods grasped by financial institutions no longer depends on the managing ability of the warehousing supervision enterprises. The platform solves the problem of core assets supervision in supply chain finance, and it has strong expansibility, security and low risk compared with traditional supervision means, which makes the funders more confident in inventory financing, chattel pledge and other business in credit approval. It is said that the credit volume of inventory financing business can be increased by 10 times by using the platform.

In aspect of the scope of pledge, Suning Finance Internet of Things breaks the division between warehouse voucher financing and spot financing by means of standardization of pledge and chain circulation of warehouse certificate. All the objects exist both in the form of stock and data assets at the same time. Under this circumstances, the scope of pledge will be greatly expanded. Goods that are not suitable for pledge can be subsumed in the financing scope for commercial banks, such as fast moving consumer goods, industrial semi-finished products and so on.

With the expansion of the scope of pledge, the business scope and financing customers of commercial banks will be further expanded. Those business that unable to achieve dynamic supervision, affecting the flexible use of enterprise financing, with high transaction costs, now can be achieved through the circulation of certificates. The original business mainly serves some trade customers , now it can be extended to small and medium-sized retailing enterprises, processing enterprises, small and micro businesses, farmers after the extension of pledge scope to truly realize inclusive finance.

In March 2019, Suning Finance “Blockchain + Internet of Things” Finance Platform was officially launched. At present, it has provided nearly 200 million yuan of credit volume for car inventory financing business for customers. The platform realizes a integrated financing mode of warehouse, integrating blockchain and Internet of things into the supply chain of financial business. It improves the management level of chattel in warehouse supervising enterprises, as well as reducing the business risks of financial institutions, and improves the risk control system of banks. At the same time, it also shortens the financing cycle of customers, as well as lowering the threshold of financing, and provides more financing options for customers. It shows the principle of Suning Finance aiming to provide inclusive service for the real economy.