China to Get Access to Online Banking System

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Last updated at: (Beijing Time) Friday, May 31, 2002

China to Get Access to Online Banking System

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China is on the threshold of building up a brand-new online banking service system, traditional banking services featuring cash transaction and business managed through branches will be changed, according to an investigation by ACNielsen.

The investigation shows that among China's most frequent online users, 23 percent are expected to become online bank's users, with their number not less than 2.5 million, China is going to enter online bank's "honeymoon period".

The investigation indicates that the ratio of online banking visitors to the frequent net surfers has increased from 10 percentage points three years ago to 23 percent, about 337,000 frequent online users get in touch with online banking business at least once a week, while 100,000 Internet users contact the online banking business every day.

Although three quarters of the 11 million-plus Chinese frequent Internet users have no intention to use online banking service yet for the time being, 70 percent of them welcome the service. Nearly 30 percent "are eager to have a try".

In the meantime, people are undergoing tremendous change in their attitude toward the service: Among the most frequent net surfers, the proportion of those against the online banking system had dropped from 14 percent in 2000 to 6 percent last year.

Online banking service is reportedly at its initial stage in China, the service is mostly a defensive tactic adopted to prevent new rivals from entering China's banking field.

But as the online banking service prominently displays its advantages of being convenient, safe, high efficient and economical, it has become the perfection and extension of the traditional banking business.

China's banks began to provide online services in 1999. The Bank of China, China Construction Bank and the Merchants Bank of China successively opened their online services in the year. The Industrial and Commercial Bank of China joined the online bank the following year.

The investigation also shows that so far, China's major banks have a large number of frequent Internet users, but they have not yet used the online bank.

Considering that the online bank is now becoming a major measure taken by Chinese banks to meet challenges from their foreign counterparts, the development of the new online banking service has become a new way to demonstrate the international competitiveness of the banking business, therefore, the day is not far off when the facilitation of the online bank is stimulating these people to turn from potential to real users.

According to an official with the People's Bank of China, the central bank is making regulations to give China-funded banks more decision-making power over their online banking business.

By PD Online Staff Li Yan

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