Bank upgrades services for tech companies

Shanghai Pudong Development Bank unveiled its upgraded financial service system on Tuesday, aiming to offer more customized and comprehensive services to its technology company clients.

Compared with the previous service platform initiated by the bank in November 2017, the new version will focus more on cultivating tech firms aiming to be listed on the country’s sci-tech innovation board. 

To better meet enterprises’ differing financing needs during different stages of development, the Shanghai-based commercial lender said it will provide them with innovative and tailor-made offerings.

For example, startups can secure loans from the bank during their A-round financing and when they are on the track of fast growth they will be able to get short-term bridging loans.

The bank said it will also make constant efforts to upgrade its product system and enrich its financial service platform.

Wang Xinhao, the bank's vice president, said finance and technology will be two key drivers for China’s economic growth in the long term. The bank will endeavor to develop more banking products and services to facilitate Shanghai’s goal of becoming a science and technology innovation center, Wang said.

Xie Dong, deputy director of the Shanghai Financial Supervisory Authority, said it hoped that banks would have a better understanding of tech companies’ funding needs and deliver more suitable services.

At the unveiling ceremony, the bank signed cooperation agreements with a group of financial institutions that included China Pacific Insurance (Group) Co and Shenzhen Cowincapital, a private placement equity investment company.

By the end of 2018, the Pudong bank had served more than 3,000 tech firms, double the number of 2016.

Meanwhile, outstanding loans extended to these enterprises exceeded 150 billion yuan (US$21.7 billion) during the same period, up 50 percent compared with 2016.