China's Banks Modernizing For Competition
Competition from foreign smart card firms is forcing banks in China to modernize their business approach, to the extent that smart cards and electronic purses are unique selling points. While China's major commercial banks launched smart cards in the past decade, the central bank, PBOC, released official standards in 1997, to comply with those of the major global credit card firms. Citizens of Beijing, Shanghai and Changsa already use integrated smart cards for banking and public service functions.Proceedings at the China Finance Industry Reforms Summit 2000, outlined how Chinese banks are to upgrade electronic networks, promote ePayments and establish personal credit. Banks and the corporate sectors will develop links, with Byran Johnson, of Arthur Andersen, saying the successful banks will be those offering technically advanced services. In particular, China's joining the WTO will galvanize banks into shifting from 'conventional' business to electronic channels, including eCommerce and GSM banking.
Two of China's biggest banks, China Merchants Bank and China Construction Bank are, for example, addressing the shortage of credit cards in China by developing an online debit system with GMAI-Asia. After registering for the debit cards at GMAI-Asia's online shopping mall, iAtoZ.com, customers can use the cards for goods purchased at online and offline stores affiliated to GMAI-Asia. iAtoZ.com is viewed as a market leader in offering B2C and C2B platforms, with a B2B service in the Related Links
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