SmartS­mart bank bank tran­si­tion tran­si­tion con­tin­ues con­tin­ues

Sec­ond-big­gest lender by as­sets deep­ens ex­ist­ing moves for di­ver­si­fied ser­vices, says chair­man

China Daily (USA) - - BUSINESS - By JIANG XUEQING jiangx­ue­qing@ chi­

The chair­man of China Con­struc­tion Bank Corp, the coun­try’s sec­ond-big­gest com­mer­cial lender by as­sets, said it was deep­en­ing its tran­si­tion to­ward in­no­va­tive smart bank­ing with com­pre­hen­sive busi­nesses and di­ver­si­fied ser­vices.

Chair­man Wang Hongzhang said that fac­ing the pres­sure of mul­ti­ple fac­tors such as eco­nomic re­struc­tur­ing, in­ter­est rate lib­er­al­iza­tion and the im­pact of in­ter­net fi­nance, it was inevitable for his bank to ac­cel­er­ate the tran­si­tion and to deepen fi­nan­cial re­forms.

“CCB is de­ter­mined to make tran­si­tions to­ward com­pre­hen­sive op­er­a­tion, mul­ti­func­tional ser­vices, in­ten­sive de­vel­op­ment, in­no­va­tive bank­ing and smart bank­ing,” he said.

Steven Xu, part­ner of EY Fi­nan­cial Ser­vices in Greater China, said ear­lier this year that com­mer­cial banks must trans­form their business mod­els, tech­nol­ogy and in­sti­tu­tional sys­tems to han­dle the chal­lenges of slower profit growth and ris­ing bad loans amid an eco­nomic down­turn.

Start­ing in 2012, CCB de­voted ma­jor ef­forts to­ward es­tab­lish­ing a web-based com­pre­hen­sive fi­nan­cial ser­vice plat­form. To­day, one out of ev­ery six Chi­nese peo­ple na­tion­wide uses its in­ter­net bank­ing ser­vice, and the num­ber of its mo­bile bank­ing clients has reached more than 200 mil­lion, the bank said.

To date, the bank has built 12 smart banks and a num­ber of flag­ship out­lets, of­fer­ing ser­vices through nearly 20,000 sim­pli­fied smart teller ma­chines and more than 1,000 stan­dard­ized STMs. The bank said its smart ro­bot cus­tomer ser­vice launched on the web and mo­bile phone de­vices now serve 2.3 mil­lion peo­ple per day on av­er­age, with the ac­cu­racy of replies ex­ceed­ing 90 per­cent.

Ac­cord­ing to CCB, by adopt­ing big data an­a­lyt­ics in the ar­eas of pre­ci­sion mar­ket­ing, prod­uct in­no­va­tion, risk con­trol and op­er­a­tions man­age­ment, it has achieved tan­gi­ble re­sults in early warn­ings of risk for small com­pa­nies and data min­ing of clients who do not have bank loans.

On the in­no­va­tive bank­ing front, CCB said it has made more than 3,600 prod­uct in­no­va­tions from 2013 to 2015, 3.5 times the num­ber be­tween 2010 and 2012.

“We keep im­prov­ing our in­no­va­tion sys­tem and abil­i­ties, es­pe­cially putting a greater em­pha­sis on business model in­no­va­tions, to re­al­ize a tran­si­tion from size-driven to in­no­va­tion-driven growth,” Wang said.

“When tech­nolo­gies and strate­gies have be­come the strengths of a com­mer­cial bank, size is no longer a prob­lem.”

In ad­di­tion, the tran­si­tion to­ward com­pre­hen­sive op­er­a­tion and mul­ti­func­tional ser­vices has di­ver­si­fied CCB’s sources of in­come. The lat­est in­terim re­sults of the bank showed that its net fee and com­mis­sion in­come rose 5.6 per­cent year-on-year dur­ing the first six months of 2016 and other types of non-in­ter­est in­come surged 140 per­cent.

Other large State-owned com­mer­cial lenders, such as In­dus­trial and Com­mer­cial Bank of China Ltd, have also fur­ther ad­vanced their business trans­for­ma­tion — to re­lease new dy­nam­ics and op­er­a­tional vi­tal­ity.

In the first half of this year, ICBC posted a 6 per­cent yearon-year in­crease of fees and com­mis­sions. By the end of June, the vol­ume of credit cards is­sued was 118 mil­lion, by which the bank be­came the big­gest credit card is­suer world­wide.


Vis­i­tors in­ter­act with a China Con­struc­tion Bank ro­bot at a fi­nance in­dus­try ex­hi­bi­tion in Bei­jing on Fri­day.

Wang Hongzhang, chair­man of China Con­struc­tion Bank

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