Chapter 459: Bank Siege
In the top-floor office of Tengda Technology Building, the aroma of tea wafts through the air.
Liu Xiaochen took a sip of the green tea in the cup, the warm fragrance spreading on the tip of his tongue. A hint of approval flashed in his eyes, and he couldn't help but nod and said, "Good tea!"
Song Ci smiled lightly upon hearing this, and said in a casual tone: "Uncle, if you like it, you can take some back later. I don't like drinking tea, so it will be useless if it is left there."
After savoring a few more sips, Liu Xiaochen put down his teacup and got straight to the point: "New Year's Day, I saw the update on WeChat yesterday.
It seems that under the immense pressure of Alipay launching Yu'ebao, you, Tengda, have finally given up on sitting still."
Song Ci raised the corners of his mouth slightly, as WeChat version 4.0 was officially launched yesterday.
Just 20 days after the launch of WeChat red envelopes, this update added a new WeChat transfer function, with a single transaction limit of up to 200,000 yuan, enough to meet users' large-scale capital flow needs.
At this point, WeChat has completed the last piece of the puzzle in the field of mobile payment, forming a "three-in-one" architecture with WeChat Pay and WeChat red envelopes, and officially upgraded to a complete Internet financial platform.
He did not explain further why his uncle attributed the move to pressure from Alipay.
As the top-level application in the payment system, WeChat Transfer is the key link connecting social relationships and large-scale financial activities. It is an indispensable part of Tenda's construction of the WeChat payment ecosystem, and its mysteries are not to be revealed to outsiders.
Liu Xiaochen's expression froze, and his tone became serious: "Yuan Dan, you should have been paying attention to the recent news, right?
Alibaba Group's launch of Yu'ebao has made Alipay the public enemy of the entire banking industry. If Tengda Group plans to launch a similar product, it must think twice before doing so.
Song Ci nodded in agreement, having already thought about the situation of Alipay.
He even knew that Yu'ebao's rapid nationwide popularity was indirectly due to his own contribution. The recent battle between the Big Four banks and Alipay has intensified.
Just 18 days after Yu'e Bao launched, its fund size surged to 60 billion yuan. This disguised operation of inflating bank liabilities completely angered the Big Four banks.
On January 10, the Industrial and Commercial Bank of China took the lead in launching an attack, citing the China Banking Regulatory Commission's Document No. 86 of 2011, directly pointing out that Alipay's quick payment was "illegal."
The reason is that the document requires the bank to directly verify the customer's identity for the first payment, but Alipay has simplified this process.
Alipay immediately fought back, saying that ICBC itself had also launched quick payment, and more than 170 banks across the country adopted the same model. If it was really illegal, then the banks were collectively "knowingly breaking the law."
Seeing that the propaganda war was not gaining any advantage, ICBC stopped pursuing the issue and directly launched countermeasures:
The Alipay quick payment limit has been lowered across the board, with the single transaction limit cut from 50,000 yuan to 5,000 yuan, and the monthly cumulative limit reduced from 200,000 yuan to 50,000 yuan.
China Construction Bank followed suit on the same day and significantly reduced its credit limit.
Just one day later, Bank of China and Agricultural Bank of China quickly followed suit, reducing the single transfer limit on Alipay to 10,000 yuan.
The four major banks have maintained a consistent stance externally, emphasizing that the move is to "protect the safety of users' funds" and avoiding discussing their intentions targeting Yu'e Bao.
However, users' operations such as recharging, repaying and spending on Alipay through quick payment are obviously blocked.
Liu Xiaochen sighed softly. "Come to think of it, ICBC used to be the custodian bank for Alipay's reserve funds. We had such a good relationship back then. Now it's like this, it's really... let's not talk about it."
Song Ci was about to speak when his cell phone suddenly vibrated. He glanced down and saw that it was Liu Yan calling, so he picked up the phone immediately.
"Mr. Song, Ma Jieke has responded. He just publicly criticized the Big Four Banks on Weibo. Do you think we should limit the flow of this content?"
On the other end of the phone, Liu Yan's voice was cautious, as if he was asking for instructions.
Song Ci laughed instead and jokingly said, “Boss Liu, I’m going to criticize you now.
It's rare for Mr. Ma to post something on Weibo. It's fine if he's not welcome, but why is he restricting the number of people who post? Just treat it normally."
"I understand." Liu Yan responded and hung up the phone.
Song Ci immediately opened Weibo and searched for Ma Jieke's homepage.
The Alibaba Group's helmsman registered the account when Weibo was first launched, but he has not updated it since WeChat Pay was launched and became a rival to Alipay.
He knew very well that Ma Jieke chose to speak out on Weibo at this moment, obviously because he calculated that in the field of Internet finance, WeChat Pay and Alipay have the same interests and are natural allies.
A blog post titled "Alipay, please hold on!" is prominently listed.
Song Ci took a quick look and found that the content directly pointed out the "monopoly and blockade" of the four major banks, denounced their infringement on the users' right to control funds, questioned the legality of the measures, and bluntly said that these methods against Alipay were "unprecedented in the world and unbelievable."
The article repeatedly emphasizes that market competition should be "determined by users" and calls for the establishment of a fair competition environment.
Liu Xiaochen also came over to check out the Weibo post and shook his head helplessly. "Ma Jieke is so loudly opposing the Big Four banks. I really don't know how this will end."
Song Ci said in a resounding voice: "Uncle, when technology can more efficiently link funds and demand, no administrative barriers can stop the market's choice.
The era of internet finance has arrived. The Big Four banks' "siege" of Alipay may have a short-term impact, but user habits are irreversible, and in the long run, this is doomed to be futile.
When Liu Xiaochen heard this, he was shocked. He didn't expect that his nephew was so pessimistic about the behavior of the Big Four banks.
"Uncle, I asked you to come here today mainly to discuss a few things."
"You say." Liu Xiaochen restrained his expression.
"The idle funds in WeChat accounts have exceeded 400 billion." Song Ci spoke at a steady pace, but with unquestionable determination.
"Now that Yu'e Bao has launched, there's no need for me and the bank to hide it. After the Spring Festival, Tengda will launch a similar money fund product called Lingqiantong."
As early as November last year, Tengda Group had passed the approval of the People's Bank of China, the China Securities Regulatory Commission and other departments and obtained a public offering license.
The establishment of the WeBank Fund Management Company and the qualifications to conduct money fund business have already been completed. The launch of Zero-Balance Wallet is just a natural outcome.
"400 billion?!" When Liu Xiaochen heard this number, his eyes widened suddenly, he exclaimed in surprise, and his breathing became faster.
But he quickly calmed down and gave a wry smile, “On New Year’s Day, the monetary fund’s agreement deposits will greatly increase the bank’s costs.
If Yu'e Bao and Lingqian Tong are allowed to absorb funds like this, they will soon absorb 30% of the current deposits in the market, and the Big Four banks will never allow it."
"No, they will agree." Song Ci's face was calm, but his eyes showed full confidence.
"If the Big Four banks are unwilling to take on this funding, I think banks like Communications and CITIC would be happy to do so."
He paused and looked at Liu Xiaochen. "Uncle, Zero-Balance Wallet could have been launched a long time ago. Do you know why I've delayed it until now?"
Liu Xiaochen belatedly understood what had happened, his face filled with disbelief.
"You deliberately used WeChat red envelopes to provoke Alibaba Group, forcing them to launch Yu'e Bao first, and thus shouldering the first wave of sanctions against the Big Four banks?"
"That's right!" Song Ci nodded slightly, confirming his uncle's guess. "With Yu'e Bao leading the charge, I think the reaction of the Big Four banks will be more moderate when Zero-Balance Wallet is released. After all, they're already mentally prepared."
Liu Xiaochen still has concerns: "That being said, the scale of 400 billion yuan far exceeds Yu'e Bao. Even if we only calculate the interest rate at 3%, the bank will have to pay an additional 12 billion yuan in costs each year."
Song Ci, however, seemed confident: "In previous years, banks might have been stronger, but this year is different.
Uncle, as the president of the ICBC Beijing branch, you've noticed the pressure on social liquidity, right?
Liu Xiaochen's expression suddenly changed. As a senior bank executive, he was well-versed in the industry. By the end of 2012, the balance of wealth management products held by banks nationwide had reached 7.1 trillion yuan, a 55% surge from 2011.
Major banks are expanding rapidly through off-balance sheet channels such as wealth management and interbank transactions in order to circumvent credit supervision.
As a result, funds are transferred to trust income rights through interbank certificates of deposit, and eventually flow into local financing platforms or the real estate sector, where they circulate idle, forming a large amount of non-standard debt claims and firmly locking up huge amounts of liquidity.
Knowing that his nephew had a unique vision, Liu Xiaochen eagerly asked, "Did you hear any rumors around New Year's Day?"
Song Ci's tone became serious: "Nowadays, bank credit has long been out of control. Funds are flowing into overcapacity industries and local financing platforms, which in turn squeezes the living space of small and medium-sized enterprises. This is definitely not good for the real economy.
How can the central bank sit idly by? This year, they will undoubtedly address two persistent problems in the financial system: capital mismatch and regulatory arbitrage. This will force banks to scale back high-risk businesses and repair their balance sheets.
Liu Xiaochen frowned, rapidly calculating the weight of his nephew's words. If what he said was true, the financial industry would undoubtedly undergo a major transformation this year, and even the slightest spark could trigger a cash crunch.
The more he thought about it, the more likely it seemed. He tentatively asked, "Yuandan, are you so confident that you've calculated there will be a bank cash shortage this year?"
Song Ci frankly admitted: "The 'cash shortage' is inevitable. By then, the hundreds of billions of funds in WeChat accounts will be eager for any bank. The situation is on our side, and the banks have little choice."
"If there really is a cash shortage, banks really won't have the confidence to bargain." Liu Xiaochen sighed with emotion. He was completely impressed by his nephew's deep planning and precise calculations.
"Uncle, ICBC is a shareholder of Tengda after all. I hope you can communicate with the head office so that we can achieve a win-win cooperation and face the launch of Zero-Balance Wallet with confidence."
Liu Xiaochen sighed softly: "I understand. I will report to the head office."
Song Ci continued, "Uncle, the digital transformation of banks is an inevitable trend in the future. As the largest state-owned bank, ICBC should be at the forefront."
Tenda has accumulated a lot of experience in the field of financial technology, such as multi-factor authentication, delayed payment, intelligent risk control models, and biometric recognition technology, which can be used in cooperation with ICBC."
Liu Xiaochen quickly responded, "I'll discuss these matters with the head office and try to pilot this in the Peking branch first. If we can achieve results, it will also be a qualification for me."
Song Ci leaned on the sofa, his eyes level with Liu Xiaochen's: "Uncle, with Tengda as your backing, it won't be difficult for you to get promoted to the next level.
But if you want to advance in your career, you must ultimately make real achievements in the financial field.”
"But I'm not good at business." Liu Xiaochen smiled bitterly and shook his head.
He is self-aware and has been able to succeed smoothly in ICBC thanks to the influence of his father, but he has always been responsible for risk control and compliance. Front-end business is not his strong point, and he has no advantage over his colleagues in business positions with outstanding performance.
Song Ci said with a serious expression, "Uncle, times have changed. The future is the era of internet finance. In this turbulent and changing situation, it is a good time to show your talents."
Liu Xiaochen was startled for a moment, then smiled: "Good nephew, come and talk to your uncle and give him some pointers."
Song Ci pondered for a moment, sorted out his thoughts, and then slowly spoke: "In the era of Internet finance, anti-rice laundering, telecommunications fraud, and P2P risks are all challenges that banks cannot avoid.
If you can establish a systematic defense system from a strategic perspective, protect the safety of the people and the country's property, set a benchmark for the entire banking industry, and let the upper echelons see your ability, it is not impossible for you to take charge of a large state-owned bank in the future."
Liu Xiaochen felt warmed up when he heard this, as risk control and compliance were exactly his strengths!
Unable to contain his eagerness, he quickly asked, "Yuan Dan, tell me in detail."
Song Ci nodded and began to explain clearly, "Let's start with anti-rice laundering. We can promote biometric identification and blockchain real-name authentication, connecting to industrial and commercial and tax data to verify the actual controllers of enterprises..."
In the case of telecommunications fraud, circuit breakers can be implemented. Banks have developed a transfer emergency braking system. When an elderly person transfers a large amount of money to a stranger's account, the children's confirmation mechanism is forcibly triggered.
We can also create a database of fraudulent transaction signatures, automatically freezing accounts for 72 hours for situations like concentrated nighttime transfers and high-frequency exploratory transactions. To prevent and control P2P risks, we need to build a financial firewall...
Song Ci told Liu Xiaochen what he had in mind, and he nodded repeatedly as he listened, gradually becoming fascinated.
"There's a lot more we can do, from offering anti-fraud classes at community banks to setting a default cooling-off period for customers over 65."
"Okay! I've learned a lot!" After listening to this, Liu Xiaochen couldn't help but slap his thigh. He felt suddenly enlightened and had a new understanding of bank risk control.
"Uncle, think about it, if you can take the lead and implement the three-dimensional strategy of "technology-driven + national joint defense + institutional innovation", you can build a solid property security line for 800 million individual customers and 40 million enterprises, and eventually make it the accepted standard for the entire industry.
By then, the central bank's commendation notice and the Daily Express's special report will probably not be far away."
Liu Xiaochen's blood boiled with passion, and he felt a surge of pride: "As a senior executive of a state-owned bank, in the era of internet finance, it is my responsibility to protect the safety of the people and national property.
These reforms are my responsibility!"
"True financial security means leaving no opportunity for fraudsters to exploit and ensuring that the public is completely unaware of the dangers that are imminent. This silent protection demonstrates the responsibility of major state-owned banks."
Seeing his nephew's serious expression, Liu Xiaochen couldn't help but joke, "You're becoming more and more bureaucratic in your speech. It would be a waste of your talent if you don't take the civil service exam!"
(End of this chapter)
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