Are you ready to embrace the game-changing trend? The internet banks are coming...
You walk into a bank and the financial advisor already knowsyou want to re-decorate your old house, simply because you have been lookingfor decorating ideas and inspiration on home décor websites and blogs from yourcomputer. Armed with this knowledge, the financial advisor immediately recommendsa home improvement loan for you.
Once you are back home, you check your mobile banking appand find a pop-up message with more details about the same home improvementloan. You donât feel harassed or overly pressurised, you just feel like this bank understands what you need and wants to help you find the right solution for you.
Consultation Pods, DBS Asia Central
DBS Treasures Private Client Centre
Frank by OCBC a credit union targeting Generation Y
Frank have a selection of over 100 cool and modern card designs that their customers can choose from
Rakcuten Bank in Japan have launched the first money transfer service over Facebook
What is an âinternet bankâ?
The term âinternet bankâ doesnât just refer to the speed of the adoption of new technology at traditional banks. Â These new internet banks are entirely online with no physical outlets and aim to shake up China's banking industry that is mostly dominated by large state-owned banks.
WeBank is an internet-only bank with no brick-and-mortar outlets and will provide services via mobile platforms. WeBank will work with Tencent (one of Chinaâs giant online firms) and their instant messaging app QQ. This new bank will begin operations as early as the first quarter of 2015.
What is WeBankâs first step?
WeBank will launch a pilot program, make it easier for small companies to obtain loans. Small businesses have become an important driver of economic growth in China, but many established players in the banking sector still prefer loaning money to larger companies. The goal of WeBankâs pilot program is to make credit more readily available to small businesses.
âWe will lower costs for, and deliver practical benefits to, small clients. While also forcing traditional financial institutions to accelerate reforms. Itâs one small step for WeBank, one giant step for financial reform.â Chinese Premier, Li Keqiang
WeBank's first loan â 350,000 RMB to a truck driver â was issued by Premier Li Keqiang during a launch ceremony in the city of Shenzhen
What is the focus for WeBankâs communication?
Unlock more possibilities in your life.
Why is now the right time for internet banks to launch in China? And what opportunities can they take advantage of?
1. Attitudes are changing towards Credits and Loans:
Chinese people are becoming more open to the idea of borrowing money. 73% of consumers agree that they feel more comfortable about being in debt today than ever before.
Source: Credit and Loan Products - China - July 2014 by Mintel
2. The Most Stressed-Out Generation in China:
Young adultsâ higher propensity to borrow reveals they are under greater financial pressure than previous generations. Especially when it comes to meeting the big ticket costs associated with starting a new family.
Source: Credit and Loan Products - China - July 2014 by Mintel
3. Consumersâ pain points:
Traditional banks (especially Big 4 banks in China) are generating significant numbers of complaints e.g. long waiting times, poor service, difficulty in getting loans approved etc.
By using big data and a more creative approach, Alibaba bank or Tencentâs WeBank can provide tailor-made products that are more able to meet the specific needs of customers today.
Consequently, the time is ripe for internet banks to strike and it looks like in the Chinese population, they have a receptive audience. In a recent study, more than 70% of respondents would consider opening an account with a purely digital bank. And nearly the same percentage would consider making an internet only bank their primary bank.
