Asia Silicon Valley

AI & Blockchain Based Supply Chain Finance Platform

Principal Investigator:Dr. Grace Lin

Abstract

Our business will integrate three major techniques, namely big data analytics, artificial intelligence, and blockchain, into the supply chain finance third-party platform. The platform will provide small and medium enterprises (SME) with a better banking environment, including increased loan extension, application approval efficiency as well as enhanced international competitiveness of the entire supply chain.

Our start-up team has the following advantages:

  • The team had succeeded in collaborating with businesses from the entire supply chain, including the core businesses, suppliers, and buyers. This allows the platform to get access to easier and more comprehensive in
  • The supply chain finance platform will be transparent and trustworthy enabled by blockchain technology.
  • Credit rating with big data AI technique can strengthen risk management, identify credible SME borrowers for financial institutions, and avoid loss from risks and bad debts.
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Team Introduction

SMEs contribute to the world economy with 70% to 95% of the job openings and 60% to 70% of the GDP. However, SMEs have a long-term hindrance of business development due to difficult loaning extended by financial institutions. Consi-dering SMEs smaller business scale and information obscurity, banks take on high-er loaning risks. Therefore, SMEs’financing costs are 5 to 8 times higher than large enterprises.

Our start-up team aims at developing supply chain finance third-party plat-form building upon AI and Blockchain techniques, and new business model. The goal is to enter the trillion SME financial market and provide credible SMEs with strengthened financial capability and competitiveness.

This new supply chain platform will strengthen SMEs’ financial capability and business operation, as well as establish supply chain transparency and credit history traceability utilizing the blockchain technique. Our new business envi-sions digital transformation, omni-channeled optimization and upgrade, and grow-ing international orders for our SME clients and economy.

Goals and Plan
Entry Barrier

(1)(1) An Interdisciplinary Team: Our team comprises competent technical tal-ents and experienced professionals in corporate finance, law, and busi-ness operations. Dr. Grace Lin, the CEO, previously working at IBM, US, was the PI of several supply chain optimization projects and has won the INFORMS Frantz Edelman Award. She demonstrates innovation and expertise in multiple fields, including AI, blockchain, supply chain, and fintech.
(2)(2) Solid Technical Foundation: Our fintech business partner Fusion$360 is equipped with technical talents experienced in supply chain optimization and fintech.
(3)(3) New Business Model: The supply chain finance platform will utilize blockchain technique to establish transparency and stakeholders’credit history. Credit rating with AI will effectively reduce financial risks, and facilitate core businesses to secure sustainable cashflow for SMEs.
(4)(4) Crucial Partner & Client: The new business has targeted industries and clients, and PaaS platform provided by Fusion$360. Several financial in-stitutions have also provided memorandum of understanding in utilizing our platform.

Market Scope

According to an SME research by ICF (2017), while SME financing need was $8.9 trillion dollars in developing countries in 2017, financial institutions on-ly extended $3.7 trillion loans to SMEs. The gap reached $5.2 trillion dollars with only 44% of SME financial need fulfilled. Amongst SME growth, East Asia and Pacific area had more than 64 million SMEs accounting for 58% of the entire world’s funding gap with $400 billion dollars. Regarding the domestic market, according to Financial Supervisory Commission, R. O. C., the outstanding SME loans by domestic banks amounted up to NT$ 6,519 billion by the end of May 2019. Amongst them, 61.55% and 64.28% of total loans were extended to total enterprises and private enterprises respectively. The average NPL ratio of SME loans was 0.41% by the end of May 2019.