Banks use technology to fight rivals

A booth showcases the Industrial and Commercial Bank of China's internet finance products at a Beijing expo. [Photo provided to China Daily]

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 exceeded 200 million, 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 in China, 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 data and information 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 automobile manufacturer.

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 clients making interbank 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 easily open electronic accounts at the other 11 banks.