Banks use tech­nol­ogy to fight ri­vals

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

Fac­ing in­tense com­pe­ti­tion from in­ter­net fi­nance com­pa­nies, com­mer­cial banks in China are adapt­ing to fast chang­ing cus­tomer habits by adopt­ing the lat­est in­ter­net tech­nolo­gies as well as chang­ing their mind­sets and busi­ness mod­els.

China Con­struc­tion Bank Corp, the na­tion’s sec­ond largest com­mer­cial lender by as­sets, has been de­vel­op­ing a web-based com­pre­hen­sive fi­nan­cial ser­vice plat­form for the past four years and be­gan im­ple­ment­ing its “dig­i­tal first” strat­egy in 2015.

Its mo­bile bank­ing clients has ex­ceed­ed200mil­lion, and its vol­ume of mo­bile bank­ing trans­ac­tions was worth more than 13 tril­lion yuan ($1.9 tril­lion) at the end of June.

The bank has 12 smart banks and a num­ber of flag­ship out­lets, of­fer­ing ser­vices through nearly 20,000 sim­pli­fied smart teller ma­chines.

Its smart robot cus­tomer ser­vice launched on the web and on mo­bile phone de­vices now serve 2.3 mil­lion clients per day on av­er­age, with the ac­cu­racy of replies ex­ceed­ing 90 per­cent.

Rank­ing top among the four largest com­mer­cial banks in­China, the In­dus­trial and Com­mer­cial Bank of China Ltd recorded a trans­ac­tion vol­ume of 284 tril­lion yuan through elec­tronic bank­ing at the end of June this year.

By giv­ing full play to big dataand­in­for­ma­tion tech­nolo­gies, the bank de­vel­oped on­line lend­ing busi­ness rapidly on the ba­sis of keep­ing risk con­trolled.

As of June 30, its on­line fi­nanc­ing bal­ance amounted to 604 bil­lion yuan, up 15.38 per­cent from the same pe­riod of 2015.

Sep­a­rately, ICBC re­cently ex­tended a loan to a dealer at Guangqi Honda Au­to­mo­bile Co Ltd af­ter re­ceiv­ing an ap­pli­ca­tion for fi­nanc­ing on the e-bank­ing plat­form based on in­for­ma­tion pro­vided by the au­to­mo­bile­man­u­fac­turer.

Later, the bank tracked the in­for­ma­tion on­line and ver­i­fied the trans­ac­tions through elec­tronic means.

Ear­lier this year, 12 na­tional joint-eq­uity com­mer­cial banks formed an in­ter­net bank­ing union in view of the rapid growth of third-party on­line pay­ment solution providers like Ali­pay. These banks have waived ser­vice fees for their clients­making­in­ter­bank money trans­fers among mem­bers of the union via in­ter­net and mo­bile ap­pli­ca­tions.

They also rec­og­nize one an­other’s ac­counts and share in­for­ma­tion about the ac­counts. As a re­sult, once the clients have opened an ac­count at a mem­ber bank, they can eas­i­ly­open­elec­tronic ac­counts at the other 11 banks.

Smart in­vestors usu­ally ques­tion the com­pa­nies’ ca­pa­bil­ity to pro­vide in­vestors a much higher re­turn rate than banks do.”


A booth show­cases the In­dus­trial and Com­mer­cial Bank of China’s in­ter­net fi­nance prod­ucts at a Bei­jing expo.

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