Want China Times,
Staff Reporter 2013-03-08
For operators in the China's banking industry, the earlier they set up an online platform, the more possible it becomes for them to perform well in the market. More commercial banks in China are catching on to this pattern and promoting their e-commerce businesses, Chinese-language magazine Business Value reports.
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| China Construction Bank in Beijing. (Photo/Xinhua) |
For operators in the China's banking industry, the earlier they set up an online platform, the more possible it becomes for them to perform well in the market. More commercial banks in China are catching on to this pattern and promoting their e-commerce businesses, Chinese-language magazine Business Value reports.
China
Construction Bank is the first major Chinese bank to venture into the
e-commerce sector.
An era of
competition between e-commerce and financial industries and their integration
is expected to commence as a result, the report said.
After
carrying out six-month trials, the bank launched its e-commerce financial
services platform, which integrates finance with e-commerce services, on Jan.
18.
The bank's
online platform will be divided into three segments: business-to-business,
business-to-consumer, and real estate marketing services.
While most
state banks are adopting a brand new model for combining the three business
platforms, the most profitable business segment for them is B2B business, the
report noted.
CBC's
online platform will focus on providing services to core business suppliers.
For instance, Haier Group owns 2,000 upstream and downstream companies. How it
provides financial services to such big enterprises will be an important task
for CBC's online platform.
On the
other hand, a number of online retailers are also expanding into the financial
sector. For instance, Chinese e-commerce giant Alibaba Group is embarking on a
major reorganization of its business structure that will reorganize its three
major business categories: platform, finance and data.
360buy
Jingdong Mall — the biggest 3C online retailer in China's B2C market — will set
up its own system for providing financial services, as well as a financial
company.
In addition,
Ping An Insurance (Group) Company of China had sold up to 4 billion yuan (US$64
million) in insurance policies and services via the e-commerce sales channel in
2012, while several other banks had tried to provide their services through the
internet.
Online
banking was previously siphoned off to a small sector in domestic banking which
employed fewer staff members and attracted little attention.
This mode
of thinking is quickly becoming outdated. CBC Mobile Banking, for example, has
80 million users and its online bank has 110 million users.
CBC
ventured into the e-commerce space to seek more clients, get clients real-time
transaction information, earn high profit margins from lending and expand its
business scope.
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