Bank of Communications Launches Closed-Loop Supervision Service for Private Education Funds

Bank of Communications has launched a linked service combining its Fee Manager collection platform with its e-Supervision system, and has built an Education Ecosystem Smart Connectivity Service Platform for private education fund supervision scenarios. The model follows a core logic of controlling the entry point, managing the process and safeguarding the exit. At the front end, Fee Manager completes collection; at the back end, e-Supervision exercises control, forming a closed-loop service system that covers smart collection and pooling at the front end, dynamic quota calculation in the middle and intelligent verification of fund use at the back end. Previously, private kindergartens collected fees for childcare and education and other items across numerous categories, making it difficult to trace fund flows. Traditional fund supervision relied largely on after-the-fact inquiries and manual approvals, resulting in high administrative costs and limited supervisory timeliness. Bank of Communications has accordingly extended its services to closed-loop supervision of private education funds.

In practice, Bank of Communications opens dedicated settlement accounts for each private kindergarten. In the middle control stage, a dynamic quota calculation model is established, under which supervisory authorities set a minimum fund retention ratio, and fund retention is managed through threshold-based, unobtrusive intelligent intervention. In the back-end payment stage, structured parameter controls are applied so that fund flows and information flows match automatically, and standardized multi-dimensional reports are generated automatically, replacing manual offline statistics and level-by-level reporting, making the supervisory process traceable and verifiable. The model translates policy and regulatory requirements into digital parameters embedded in the system, delivering an unobtrusive service experience through embedded governance.

For education authorities, the model makes the entire fund operation process visible and dynamically monitorable, and the industry operating data accumulated on the platform can be used for policy formulation and industry risk assessment. For private kindergartens, fund applications are handled online and reconciliation and accounting are completed automatically, reducing transactional work such as manual bookkeeping and offline approval requests. Quota-based management is implemented within a compliance framework, allowing compliant institutions to use funds and reducing redundant approval procedures. For families with young children, childcare and education fees are used exclusively for their designated purpose with transparent flows, helping prevent the risk of fund misappropriation by private institutions. Since the model was introduced, Bank of Communications has reached cooperation intentions with education departments in multiple regions, and the relevant cooperation agreements are being signed at an accelerated pace.