SHRCB has deep-rooted connections with local SME clients, having evolved from rural credit unions established as early as 1949. In 2005, the bank transitioned into a rural commercial bank and later went public in 2021. Over 90% of its customers are local Shanghainese SMEs mainly from the greater Shanghai area. The bank has more than 50,000 SME customers, mainly in manufacturing, and retail and wholesalers.  

By the end of 2023, SHRCB's total assets amounted to RMB 1.39 trillion ($186 billion), making it the 136th largest bank worldwide and the 28th in China, according to TAB Global 1000 Strongest Banks ranking.

Xu highlighted the importance of understanding local customers to succeed in China's competitive banking sector. To address SME financing needs, most notably for those with cross-border and overseas businesses, SHRCB has launched several initiatives. The bank was the first rural commercial bank to obtain a full derivatives licence and to operate in the Shanghai Free Trade Zone to help SME customers with foreign exchange (FX) hedging and management. It now offers a wide range of services, from trade finance and cross-border merger and acquisition loans to letters of credit, FX trading, and guarantees.

As financial services in China become more digital, Huang pointed out that SMEs may need more time to adapt to digital solutions due to higher costs for smaller businesses. Currently, 70% of payments and transfers, and over 30% of SHRCB’s letters of credit, are processed digitally. However, corporate loans still require a manual pre-loan review before digital disbursements can occur. “It’s often more important to move at the same pace as your customers rather than adopting technology for its own sake,” Huang noted.

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