Shanghai Pudong Development Bank (SPD Bank) and Huawei presented the SPDB 
Finwarehouse Solution at HUAWEI CONNECT 2021. The solution is one of the 
biggest milestones in joint innovation for financial digitalization. It is also 
a step towards consolidating the Bank of Things, as the solution uses IoT to 
secure movable property pledges, making every object identifiable, every alarm 
traceable, and every item trustworthy.

Last year, SPD Bank and Huawei released the Bank of Things White Paper, which 
proposes a new financial services model and system. Following this, SPD Bank 
began to apply innovative digital technologies to promote the Bank of Things, 
partnering with Huawei to "dive into digital". SPDB Finwarehouse is one of the 
important initiatives that has resulted from this partnership and direction.

The solution is designed for industrial supply chains and is an innovative way 
to manage pledges for movable warehousing properties. Previously an area of 
financial services that wasn't seeing extensive digitalization, movable 
properties represent an innovation market space worth billions of yuan.

SPDB Finwarehouse: Secure and Easy Management of Movable Properties 

Often, movable properties are subject to several risks. For example, ownership 
may not be clear, so property is pledged several times. At the same time, 
supervision companies may not always be completely ethical, which is why 
adulteration is likely to occur. Even if supervision is precise, it is costly 
without digital means. And without a disposal platform, goods are difficult to 
monetize. 

In response to these issues, SPD Bank has designed a more precise and 
trustworthy solution. SPDB Finwarehouse uses RFID, weighing devices, and 
blockchain PDA devices to record objective information directly at the 
warehouse. Inbound goods are matched with financing and lending, while outbound 
goods are linked with repayment. This makes goods supervision a lot easier and 
more effective. 

The solution also helps accurately determine the value of goods. It integrates 
verified trade, perception, and market information, and uses it to determine 
ownership, valuation, and efficient disposal. Essentially, logistics, 
commercial, capital, and information flows become centralized, providing the 
necessary data to properly valuate movable assets. Both upstream and downstream 
enterprises can now access accurate financial services, which cover the 
entirety of the supply chain.

Illustration: SPDB Finwarehouse: Trustworthy, manageable, and easy-to-dispose 
movable properties

Trustworthy Asset Pool Powered by Smart IoT

Logistics and warehouses frequently use digital technologies. As such, Huawei 
and SPD Bank are deploying intelligent IoT devices at warehouses along with 
introducing AI capabilities and multi-dimensional data verification. This 
transforms regular warehouses into financial ones, integrating financial 
services into management and business processes. 

Based on the HUAWEI CLOUD platform, SPDB Finwarehouse makes every object 
identifiable, every alarm traceable, and every item trustworthy. The solution 
features the following technologies:  

Distributed RFID positions objects within meters, takes stock automatically, 
and tracks items in real time. 
With Pangu models, most models can be reused, reducing the number of samples 
required for training and shortening the project development period. 
The Huawei IoT platform implements GUI-assisted modeling, flexibly defines and 
builds models, and centrally manages them. It cross-validates data through 
digital twin technology, and performs comprehensive risk analysis on the goods, 
processes, personnel, and environment of the warehouse.
Monitoring Center Ensures Authenticity of Inbound Goods

In the SPDB Finwarehouse Monitoring Center, operators can easily verify the 
authenticity of inbound goods. They can count cargo stacks through Pangu models 
and verify them using the scanning code, weight data, and trade background data.

"SPDB Finwarehouse is a pilot digital finance project. We have performed an 
in-depth evaluation on the needs of the enterprise service market. Now, we need 
to continue looking for ways to transform our business logic and rebuild our 
technical capabilities in order to keep up digitalization." — said by Mr. Chen 
Haining, GM of the IT Department at SPD Bank. He added, "By integrating digital 
technologies into industries, we can use digital capabilities to drill down 
into the supply chain scenarios of various real economy industries. SPD Bank 
looks forward to working with Huawei to integrate finance with the real 
economy."

In a world where everything is connected, new scenarios and business models 
will continue to emerge.

"Huawei and SPD Bank will continue to innovate, providing leading technology 
products and full-stack cloud infrastructure solutions for digital finance 
upgrades. We will use technology innovation for faster financial services 
upgrades, working together to further interconnect industries with tailored 
financial innovation." — said by Mr. Jason Cao, President of Global Financial 
Business Unit, Huawei Enterprise BG, "Huawei has contributed its full-stack 
technologies to work on SPDB Finwarehouse with SPD Bank. With our customers, we 
are diving into digital and promoting the upgrade of digital finance. We hope 
to drive the real economy forward with the power of finance. Huawei is 
committed to helping financial institutions as they constantly upgrade their 
agility, intelligence, industry services, and ecosystem construction. We are 
helping financial institutions along their digital transformation journey and 
building a fully connected, intelligent, and ecosystem-based finance industry 
together."

SPD Bank and Huawei set up a joint innovation lab in 2018, which has led to 
several successful projects. In August 2020, they signed a comprehensive 
strategic cooperation agreement, and together published The Bank of Things 
White Paper — a major milestone. SPD Bank will focus on user experience, apply 
digital technologies, and innovate with industries such as retail, 
communications, transportation, and healthcare, to boost the digital economy.

In a world where everything is connected, finance, technology, and industry 
will be closely linked. Huawei and SPD Bank are drawing on the power of 
cloud-based FinTech to serve the community, enable customers, and create new 
industry value.

Huawei hosts HUAWEI CONNECT 2021 online from September 23 to October 31. The 
theme of this year's event is Dive into Digital. We're going to dive deep into 
the practical application of technologies like cloud, AI, and 5G in all 
industries, and how they can make organizations of all shapes and sizes more 
efficient, more versatile, and ultimately more resilient as we move towards 
economic recovery.

For more information, please contact our local team or check out 
https://www.huawei.com/en/events/huaweiconnect

Source: Huawei