November 9, 2010 marks the decade-long establishment of ICBC Bill Department China's first institution located along the Huangpu River and dedicated to bill business. Over the course of 10 years, the Department braved through extraordinary challenges and achieved high-quality growth in bill assets and stable business performance backed by ICBC's overall strength.
As of today, the Department registers a turnover of RMB 6.5 trillion and RMB 7 billion in profit and maintains zero record on inward fraudulent bills, non-performing assets, capital loss and economic criminal cases. In January-October period this year, ICBC Bill Department processed bills of over RMB 900 billion and generated RMB 849 million in profit, representing 105.
57% increase year on year. Profit contribution per person in average broke through RMB 3 million. All these add colors to the excellent brand of "ICBC Bill".
An Integrated Service Network
The stellar performance of ICBC Bill Department since its inception ten year ago owed very much to its advanced service management and support scheme.
ICBC Bill Department is the first organization for bill business in China. From September 2002, ICBC Bill Department set up 8 direct sub-departments nationwide in major regional economic centers Shenyang, Guangzhou, Xi'an, Chongqing, Tianjin, Zhengzhou, Beijing and Shanghai. Under the unified management, ICBC Bill Department delivers bill services in the country through a service network comprising headquarters as the "spearhead", the sub-departments as "backbone"and bill centers in the branches as the subsidiaries.
The headquarters is in charge of the overall plan of market, products, customers, while the sub-departments are responsible for the collaboration and coordination. This management model using service network signals a transformation from individual-operated fiefdom towards a systematic, professional and centralized operation.
Marketing and promotion go with the service platform in the mid-office and back office. Based on this, the new management system set up by the Department to strengthen the customer relation has improved significantly the Department's capability to serve the market.
While building its service network, ICBC Bill Department continues to make enhancement on its internal management and service support scheme in order to keep pace with the business progress. In May 2007, the Department started the set-up of an information center for information collection, information management and statistical analysis.
The center also offers different information services and products to support the growth of ICBC bill business. To fulfill customer-focused, horizontal management, ICBC Bill Department leverages ICBC's best-in-class technology in the country to implement two mechanisms of "Custody by system", "support by second line".
In order to ensure the smooth running of production system, clearing and auditing, the Department independently developed the "bill management system"and "ISO processes self-definition platform"for its unique application as well as an impetus for the Department to go forward.
Internal Control, Risk Control Mechanism
Risk management and internal control mechanism is another factor for ICBC Bill Department to achieve high-quality progress. Since its inception, the Department has adopted the business philosophy of "System before business, procedure before operation"and concentrated to embed a risk management culture throughout the Department.
The Department sets up the Risk Management Committee and Internal Control Management Committee to study and institute the risk management system and handle major risk management events. Also in place is a control process for the management of risks in all the steps of bill business and a four-level (chief risk officer, key reviewer, risk reviewer, customer manager) risk control and prevention scheme.
The objective is to separate the risks in three areas of marketing, risk review and approval. Meanwhile, ICBC Bill Department implements "hard control"on the transaction permission and credit limit authorization through computer system to stop the entry of bills from companies or banks with potential risks.
Operational risks are averted by the joint control through business operation system and accounting audit system. The Department also uses system information to monitor all the risks in the process. Risks involved in the bill business are effectively eliminated by the timely risk alert and suggestion from the computer system.
As early as in 2002, ICBC Bill Department started the implementation of ISO9001 Quality Management Standard among domestic peers. ICBC was the first banking institution in China accredited with the ISO9001:2008 (revision) and creatively combined the ISO standard with bill business. Through this scheme, the Bill Department carries out standard document management procedures.
This stands for a set of standard procedures that cover the overall structure of the documents, release of the processes, compilation formats, execution control and document review. The document management in the Department facilitates the continual improvement of the documents and processes in terms of quality and effectiveness.
In 2007, ICBC Bill Department started the project on increasing optimization in business process based on the existing quality management scheme. The purpose is to adapt to changing customer needs and business reorientation, to improve the level and effectiveness of ISO quality management scheme. The optimization helps achieve "seamless connectivity"between the quality management scheme and the process bank.
The control of operational risk is carried out with a management platform in place under unified service standard, unified image to outside, increased risk awareness, compliance culture and centralized management. After nearly eight years of continual improvement and progress, quality management scheme in the Department plays a major role in pushing the performance and management of the Department, a unique "brand"and an important measure for ICBC Bill Department to compete in the market.
Win-Win Scenario, Good Brand Image
While moving forward, ICBC Bill Department sees its responsibility to participate in setting up market standard and promoting the prosperity of the bill market and business in China. In 2002, ICBC Bill Department initiated the establishment of "China Urban Financial Society-Bill Research Institute"in Shanghai and the journal Bill Study, and "Shanghai Municipal Bill Business Joint Meeting System"in the same year.
These initiatives represent the contribution of the ICBC Bill Department to the orderly development of the Shanghai bill market. In a move to push ahead the cooperation and development in regional markets, ICBC Bill Department starts another initiative to set up four regional "Bill Saloons"in "Yangtze River Delta".
"Pearl River Delta", Northeast China and North China on top of the regional bill business joint meetings organized by the sub-departments. During the first half of 2003, ICBC Bill Department launched "ICBC Bill Price index", the first bill index in China's financial sector. Every week there are news and trends about the index.
Subsequently, the Department launched the quotes on bills using SHIBOR as benchmark at the www.zgpj.net. In 2009, ICBC Bill Department authorized to announce the "Yangtze River Delta"discount price index. This was another contribution of the Department to guide the bill organizations in China to quote bill prices referencing market prices/trend and increase the transaction efficiency in bill market.
"Ten years of efforts, ten years of mission". ICBC Bill Department is going to write a new chapter after a decade of hard efforts. ICBC Bill Department will continue to meet the challenge amid the complex economic and financial conditions in the days ahead and fast-moving bill market. By playing its special role, the Department remains committed to reform and innovation to expedite the course of change. The aim of the Department is to build up its brand value and image and strives to be an excellent integrated service provider in bill market.
