China online banking development Essay Example for Free

china online wedgeing development Essay chinaw be is expected to become the largest information technology (IT) market in the world in the adjacent five years, acknowledging that computers will be popular in Chinese families by that time. mainland chinaware now ranks No. 2 in net profit subscribers in the world. owe to mainland chinas large population, the countrys meshwork market still has great potential. randomness technology has been utilized in almost tout ensemble sectors of mainland chinas miserliness today. E-g in all(prenominal)(prenominal)wherenment, e-business, e- pay, and upgrading of state- throwed enterprises will all go forth more opportunities for the development of the industry inChina is expected to become the largest information technology (IT) market in the world in the adjoining five years, acknowledging that computers will be popular in Chinese families by that time. China now ranks No.2 in profits subscribers in the world. owe to Chinas la rge population, the countrys cyberspace market still has great potential. selective information technology has been utilized in almost all sectors of Chinas economy today. E-g bothwherenment, e-business, e-finance, and upgrading of state-owned enterprises will all issue more opportunities for the development of the industry in China.Read the Memo sent out by Jaime about 2004 Mid-Year Offsite Business-planning meeting conducted by S1 concern team, the key idea of Perfecting our International and Distribution Business caught my attention. Learned the virgins that Macau Tai Fung bank implemented S1 beaching Solution to launched its online banking serve, and found out that S1 receptive an smear in capital of Red China Chinas capital city, I got a feeling that S1 already turned its eyes to Chinese Market and wonder whether S1s management would like to chafe further moves and confiscate the opportunity.Before left China to immigrant to Canada, I had 6 years working experienc es in capital of Red China-my home city, dealing with Chinese financial agencies and institutions, Chinese and foreign banks as puff up as separate financial institutions and value providers in China, Im quite familiar with Chinese financial industry structure. Id like to substance ab aim my knowledge and make this online research report. If S1 is interested in expanding business in China, but non gain what is the situation there and where to start, my research report will, I hope to a certain extent, answer close to of your questions.The main purpose of this report is to provide some information and personal suggestions that, I hope, could be reformative for S1s management or marketing team to better understand Chinese market. This report includes information c everywhereing Chinese banking system structure, the emergence and development of net income banking and online insurance serve in China, Chinese governments policies and regulations toward online banking and insur ance business as well(p) as some prepositional thoughts about how to present S1 and its products to China.Naissance of Online Banking in China In the previous(a) 1990s, China began allowing banks to open online businesses. In 1996, China merchandisers Bank launched the foremost online financing service in China by dint of All in One Net, an online stip hold back method, which set up the basic operating pattern of China online banking. On October 1997, the industrial and Commercial Bank of China (ICBC) established its own homepage on Internet to promote its financing function and to provide business guide for Internet users. March 1998, Bank of China successfully handled its first e-transaction.To 1999, all major banks in China had sped up their online banking construction. To date, online banking has make good progress in China. According to statistics from the recently seminar called International Symposium on the Development of Online Banking and Supervision sponsored by C hina Banking regulative Commission, Chinas online bank transactions be expected to reach 20 trillion yuan (about 2. 4 trillion US dollars) by the nullify of this year. Currently, China has over 40 million individuals and 60,000 companies and institutions involved in online banking businesses.In 2003, Internet-based banking businesses have witnessed a big step forward, owing to the outbreak of SARS (Severe subacute Respiratory Syndrome). Traditionally, Chinese have placed a premium on face-to-face meeting for important business-re belatedlyd matters, but the SARS crisis has forced people to agitate their attitude. Online Banking Development in China China is in the early stages of a vast transformation from a handed-down bullion and carry banking system where customers use the carve upes for almost every banking activity to a modern Internet banking system.Currently, more than 50 commercial banks ( municipal and foreign) and over 200 of their branches in China have opened we bsites, among which, a thorough of over 50 banks have launched online businesses. The Growth of Online Banking Customers in China Chinas online bank transactions were 14. 3 gazillion yuan in 2001, change magnitude to 21. 8 jillion yuan in 2003, and are expected to reach 20 trillion yuan (about 2. 4 trillion US dollars) by the end of this year. Figure 3. 1 The Growth of Online Banking Customers in China Online Shopping Payment Methods in China.According to a survey made by China Internet profit Information Center (CNNIC), remuneration online by accredit entry card and deposit card is becoming the 1st choice for online purchasing. The traditional hire method of compensation on delivery by cash and postal remittance decreased 3. 7% this year. Figure 3. 2 Online Purchasing Payment Methods in China An abbreviation shows that security and service abilities are the main concerns for Chinese to use online banking operate, 72. 2% of the people inquired care a lot about whether the banks brook guarantee the caoutchouc of all transactions in their online serve, 60.6% hope to see more functions and flexibilities. Figure 3. 3 Factors that that will attract Chinese to use online banking services both(prenominal) Chinese and foreign banks in China realized that the internet solutions provide clients with more highroads to communicate with them and allow them to benefit from great control and price efficiency, which are top of mind for treasurers today. Domestic Banks and Their Online Banking function For many Chinese, banking in general is a novel experience and in an economy where cash dust important, so bank branches alike provide security to customers.However, with accession to the World Trade Organization (WTO), Chinas major banks having to face competition, the local anesthetic players are increasingly comprehend their extensive and heavily manned branch networks as a liability. More and more Chinese banks seem to have discovered the Internet as new denotation of revenue and the powerful attraction of Internet banking is reflected an attractive proposition. The Chinese bank that has bee quickest off the mark in twist Internet banking is China Merchant Bank, which launched the first online financing service in China in 1996.The four state-owned commercial banks quickly followed and successively began to offer some online services since then. whitethorn 2000, the unpolished Bank of China ( alphabet) implemented a trial Internet banking service in its Guangzhou Branch, which allowed their customers in Guangdong province to access their bank note through Internet. celestial latitude 2000, ABC launched online banking service in Shanghai called 95599 Online Bank. The new service of 95599 Online bank has reportedly attracted a number of large embodied clients, such as China Worldbest base and Shanghai Volkswagen.The services offered include money exchange, personal cheque issuance and access to consumer loans. Users can also report the red ink of certificates of deposit, bankbooks and bankcards as well as prearrange withdrawals of cash sums. At the same time, China Construction Bank (CCB) announced its plans to extend its online banking services to 15 cities in the mainland as well as simplify the process of related authentication in a bid to boost the number of clients using online services.The bank began religious offering online services in April 2000 in cities of Beijing, Guangzhou, Shenzhen and Qingdao. Last year, the Industrial and Commercial Bank of China (ICBC) unveiled a new platform for its personal online banking business emailprotected ICBC officials tell the upgraded e-banking platform could comfort a key shift of the banks outlets from all-round functions to sales-orientated services, and gives it a firmer foothold in a market with intensifying foreign competition.ICBC officials verbalize the 58-function brand-name allows almost all services a traditional banking outlet offers to be processed by the client on the computer, including 24-hour any-amount transfers of funds or remittances, securities and foreign currency commerce as well as collateralized loans. Figure 3. 4 Internet Services provided by the 4 state-owned commercial banks Name Website URL Language Internet Services The Agricultural Bank of China (ABC) www. abocn. com Chinese simplify Banking industry news and website news, Regulation for foreign currency deposits bond to online banking Bank of China (BOC) www. bank-of-china. com Chinese Simplified English involvement to branch offices in other cities and provinces Link to E-banking services Cash management Information on the bank and its activities Information on credit card deposits online and telecommunicate banking, loans and remittances. China Construction Bank www. ccb-on-line. com Chinese Simplified English Links to exchange rates, stock quotes, deposit rates, loan rates, bank fees. Link to branch offices in other cities and provi nces Credit card information.International Operations such as financing, merchant banking, multinational settlements, currency exchange, treasury services, credit investigations Information on marine branches and domestic branches that conduct international transactions Foreign currency deposit, multi-currency remittances, account settlement and term deposit. Link to online banking and payment The Industrial and Commercial Bank of China (ICBC) www. icbc. com. cn Chinese Simplified Chinese Traditional English Link to branch offices in other cities and provinces Link to online bank services personal banking, corporate Banking.Information on E-banking Online financing Links to exchange rates, stock quotes, deposit rates, loan rates, bank fees. Foreign Banks and Their Online Banking Services Citibank claims that they are the 1st foreign bank in China that obtained approval from the Peoples Bank of China (PCBC) to offer Internet banking services in China to both domestic and intern ational corporations, as well as consumers. Its Internet banking services provide clients with convenient, easy-to-use, and secure access to banking transactions, 24 hours a day, seven days a week, over the Web.fling its CitiDirect corporate banking service for cash management, the bank has genuine an internet-based payments system specifically for the country. The system enables corporate clients in China to make local currency (renminbi) payment transactions to beneficiaries in over 7000 locations. The system, called Citibank swooning Payments, also delivers various payment and collections reports for clients to facial expression or download into their computers. Its Internet-based banking services available in China for corporate and consumer clients includeCitiDirect(r) Online Banking is Citibanks Web-based delivery channel for corporate clients, designed to securely deliver online an ever-expanding array of Citibank transaction products. CitiDirect(r) Online Banking provides access to account information, payment initiation capabilities, collections data, trade finance transactions, and import/export rouse integrating capabilities. CitiDirect(r) replaces traditional electronic banking applications with a single Web-based delivery channel, thereby improving efficiency and reducing costs to clients. unattached in 90 countries and 20 languages including traditional and simplified Chinese, CitiDirecti Online Banking gives clients the benefits of real time processing, robust security and integration with their in-house treasury systems. * Citibank Easy Payments, an Internet-based payment system that allows corporate clients in China to make local currency (Renminbi) payment transactions to beneficiaries in over 7000 locations in China. This system was specifically developed for the China market.Citibank Easy Payments also delivers various payment and collections reports for clients to view or download into their computers. Citibank Easy Payments supports interface with all major Enterprise Resource Planning (ERP) packages such as SAP, Oracle, BPCS as well as locally developed Chinese accounting packages. Citibank. com. cn, an Internet banking portal that allows corporations and consumers to manage their accounts online, make online enquiries or transactions, view customize and personalize pages as well as rent online tools and real-time global market information.Global banking group HSBC, Hang Seng Bank and Bank of East Asia received online-banking license and launched online banking service in China on January 2003. This new service allows their customers to check their balances, transfer funds, make time deposits and account enquiries, check interest and foreign exchange rates, and glow remittance instructions through Internet. It is said that more foreign banks, like London-based Standard Chartered Bank, have also received approval to launch online banking services in China, but it is not clear when the emerging market special ist would offer such service.China is expected to become the largest information technology (IT) market in the world in the next five years, acknowledging that computers will be popular in Chinese families by that time. China now ranks No. 2 in Internet subscribers in the world. Owing to Chinas large population, the countrys Internet market still has great potential. Information technology has been utilized in almost all sectors of Chinas economy today. E-government, e-business, e-finance, and upgrading of state-owned enterprises will all provide more opportunities for the development of the industry in China.Read the Memo sent out by Jaime about 2004 Mid-Year Offsite Business-planning meeting conducted by S1 management team, the key take of Perfecting our International and Distribution Business caught my attention. Learned the news that Macau Tai Fung bank implemented S1 Banking Solution to launched its online banking services, and found out that S1 opened an office in Beijing Ch inas capital city, I got a feeling that S1 already turned its eyes to Chinese Market and wonder whether S1s management would like to make further moves and acquire the opportunity.Before left China to immigrant to Canada, I had 6 years working experiences in Beijing-my home city, dealing with Chinese financial agencies and institutions, Chinese and foreign banks as well as other financial institutions and service providers in China, Im quite familiar with Chinese financial industry structure. Id like to reuse my knowledge and made this online research report. If S1 is interested in expanding business in China, but not clear what is the situation there and where to start, my research report will, I hope to a certain extent, answer some of your questions.The main purpose of this report is to provide some information and personal suggestions that, I hope, could be helpful for S1s management or marketing team to better understand Chinese market. This report includes information coverin g Chinese banking system structure, the emergence and development of Internet banking and online insurance services in China, Chinese governments policies and regulations toward online banking and insurance business as well as some prepositional thoughts about how to present S1 and its products to China.Naissance of Online Banking in China In the late 1990s, China began allowing banks to open online businesses. In 1996, China Merchants Bank launched the 1st online financing service in China through All in One Net, an online payment method, which set up the basic operating pattern of China online banking. On October 1997, the Industrial and Commercial Bank of China (ICBC) established its own homepage on Internet to promote its financing services and to provide business guide for Internet users. March 1998, Bank of China successfully handled its first e-transaction.To 1999, all major banks in China had sped up their online banking construction. To date, online banking has made good pr ogress in China. According to statistics from the recently seminar called International Symposium on the Development of Online Banking and Supervision sponsored by China Banking regulatory Commission, Chinas online bank transactions are expected to reach 20 trillion yuan (about 2. 4 trillion US dollars) by the end of this year. Currently, China has over 40 million individuals and 60,000 companies and institutions involved in online banking businessesIn 2003, Internet-based banking businesses have witnessed a big step forward, owing to the outbreak of SARS (Severe Acute Respiratory Syndrome). Traditionally, Chinese have placed a premium on face-to-face meeting for important business-related matters, but the SARS crisis has forced people to change their attitude. Online Banking Development in China China is in the early stages of a vast transformation from a traditional cash and carry banking system where customers use the branches for almost every banking activity to a modern Intern et banking system.Currently, more than 50 commercial banks (domestic and foreign) and over 200 of their branches in China have opened websites, among which, a summarize of over 50 banks have launched online businesses. The Growth of Online Banking Customers in China Chinas online bank transactions were 14. 3 billion yuan in 2001, increased to 21. 8 billion yuan in 2003, and are expected to reach 20 trillion yuan (about 2. 4 trillion US dollars) by the end of this year. Figure 3. 1 The Growth of Online Banking Customers in China Online Shopping Payment Methods in ChinaAccording to a survey made by China Internet Network Information Center (CNNIC), payment online by credit card and deposit card is becoming the 1st choice for online purchasing. The traditional payment method of payment on delivery by cash and postal remittance decreased 3. 7% this year. Figure 3. 2 Online Purchasing Payment Methods in China An analysis shows that security and service abilities are the main concerns fo r Chinese to use online banking services, 72. 2% of the people inquired care a lot about whether the banks can guarantee the safety of all transactions in their online services, 60.6% hope to see more functions and flexibilities. Figure 3. 3 Factors that that will attract Chinese to use online banking services Both Chinese and foreign banks in China realized that the internet solutions provide clients with more channels to communicate with them and allow them to benefit from greater control and cost efficiency, which are top of mind for treasurers today. Domestic Banks and Their Online Banking Services For many Chinese, banking in general is a new experience and in an economy where cash remains important, so bank branches also provide security to customers.However, with accession to the World Trade Organization (WTO), Chinas major banks having to face competition, the local players are increasingly seeing their extensive and heavily manned branch networks as a liability. More and mo re Chinese banks seem to have discovered the Internet as new source of revenue and the powerful attraction of Internet banking is reflected an attractive proposition. The Chinese bank that has bee quickest off the mark in building Internet banking is China Merchant Bank, which launched the first online financing service in China in 1996.The four state-owned commercial banks quickly followed and successively began to offer some online services since then. May 2000, the Agricultural Bank of China (ABC) implemented a trial Internet banking service in its Guangzhou Branch, which allowed their customers in Guangdong province to access their account through Internet. December 2000, ABC launched online banking service in Shanghai called 95599 Online Bank. The new service of 95599 Online bank has reportedly attracted a number of large corporate clients, such as China Worldbest Group and Shanghai Volkswagen.The services offered include currency exchange, personal cheque issuance and access t o consumer loans. Users can also report the loss of certificates of deposit, bankbooks and bankcards as well as prearrange withdrawals of cash sums. At the same time, China Construction Bank (CCB) announced its plans to extend its online banking services to 15 cities in the mainland as well as simplify the process of related authentication in a bid to boost the number of clients using online services.The bank began offering online services in April 2000 in cities of Beijing, Guangzhou, Shenzhen and Qingdao. Last year, the Industrial and Commercial Bank of China (ICBC) unveiled a new platform for its personal online banking business emailprotected ICBC officials said the upgraded e-banking platform could facilitate a key shift of the banks outlets from all-round functions to sales-orientated services, and gives it a firmer foothold in a market with intensifying foreign competition.ICBC officials said the 58-function brand-name allows almost all services a traditional banking outlet offers to be processed by the client on the computer, including 24-hour any-amount transfers of funds or remittances, securities and foreign currency trading as well as collateralized loans. Figure 3. 4 Internet Services provided by the 4 state-owned commercial banks Name Website URL Language Internet Services The Agricultural Bank of China (ABC) www. abocn. com Chinese Simplified Banking industry news and website news, Regulation for foreign currency depositsLink to online banking Bank of China (BOC) www. bank-of-china. com Chinese Simplified English Link to branch offices in other cities and provinces Link to E-banking services Cash management Information on the bank and its activities Information on credit card deposits online and phone banking, loans and remittances. China Construction Bank www. ccb-on-line. com Chinese Simplified English Links to exchange rates, stock quotes, deposit rates, loan rates, bank fees. Link to branch offices in other cities and provinces Credit card information.International Operations such as financing, merchant banking, international settlements, currency exchange, treasury services, credit investigations Information on oversea branches and domestic branches that conduct international transactions Foreign currency deposit, multi-currency remittances, account settlement and term deposit. Link to online banking and payment The Industrial and Commercial Bank of China (ICBC) www. icbc. com. cn Chinese Simplified Chinese Traditional English Link to branch offices in other cities and provinces Link to online bank services personal banking, corporate Banking.Information on E-banking Online financing Links to exchange rates, stock quotes, deposit rates, loan rates, bank fees. Foreign Banks and Their Online Banking Services Citibank claims that they are the 1st foreign bank in China that obtained approval from the Peoples Bank of China (PCBC) to offer Internet banking services in China to both domestic and international corpo rations, as well as consumers. Its Internet banking services provide clients with convenient, easy-to-use, and secure access to banking transactions, 24 hours a day, seven days a week, over the Web.Offering its CitiDirect corporate banking service for cash management, the bank has developed an internet-based payments system specifically for the country. The system enables corporate clients in China to make local currency (renminbi) payment transactions to beneficiaries in over 7000 locations. The system, called Citibank Easy Payments, also delivers various payment and collections reports for clients to view or download into their computers. Its Internet-based banking services available in China for corporate and consumer clients includeCitiDirect(r) Online Banking is Citibanks Web-based delivery channel for corporate clients, designed to securely deliver online an ever-expanding array of Citibank transaction products. CitiDirect(r) Online Banking provides access to account informati on, payment initiation capabilities, collections data, trade finance transactions, and import/export file integration capabilities. CitiDirect(r) replaces traditional electronic banking applications with a single Web-based delivery channel, thereby improving efficiency and reducing costs to clients.Available in 90 countries and 20 languages including traditional and simplified Chinese, CitiDirecti Online Banking gives clients the benefits of real-time processing, robust security and integration with their in-house treasury systems. * Citibank Easy Payments, an Internet-based payment system that allows corporate clients in China to make local currency (Renminbi) payment transactions to beneficiaries in over 7000 locations in China. This system was specifically developed for the China market.Citibank Easy Payments also delivers various payment and collections reports for clients to view or download into their computers. Citibank Easy Payments supports interface with all major Enterpri se Resource Planning (ERP) packages such as SAP, Oracle, BPCS as well as locally developed Chinese accounting packages. Citibank. com. cn, an Internet banking portal that allows corporations and consumers to manage their accounts online, make online enquiries or transactions, view customize and personalize pages as well as get online tools and real-time global market information.Global banking group HSBC, Hang Seng Bank and Bank of East Asia received online-banking license and launched online banking service in China on January 2003. This new service allows their customers to check their balances, transfer funds, make time deposits and account enquiries, check interest and foreign exchange rates, and send remittance instructions through Internet. It is said that more foreign banks, like London-based Standard Chartered Bank, have also received approval to launch online banking services in China, but it is not clear when the emerging market specialist would offer such service.Read the Memo sent out by Jaime about 2004 Mid-Year Offsite Business-planning meeting conducted by S1 management team, the key topic of Perfecting our International and Distribution Business caught my attention. Learned the news that Macau Tai Fung bank implemented S1 Banking Solution to launched its online banking services, and found out that S1 opened an office in Beijing Chinas capital city, I got a feeling that S1 already turned its eyes to Chinese Market and wonder whether S1s management would like to make further moves and seize the opportunity.Before left China to immigrant to Canada, I had 6 years working experiences in Beijing-my home city, dealing with Chinese financial agencies and institutions, Chinese and foreign banks as well as other financial institutions and service providers in China, Im quite familiar with Chinese financial industry structure. Id like to reuse my knowledge and made this online research report. If S1 is interested in expanding business in China, but not c lear what is the situation there and where to start, my research report will, I hope to a certain extent, answer some of your questions.The main purpose of this report is to provide some information and personal suggestions that, I hope, could be helpful for S1s management or marketing team to better understand Chinese market. This report includes information covering Chinese banking system structure, the emergence and development of Internet banking and online insurance services in China, Chinese governments policies and regulations toward online banking and insurance business as well as some prepositional thoughts about how to present S1 and its products to China.Naissance of Online Banking in China In the late 1990s, China began allowing banks to open online businesses. In 1996, China Merchants Bank launched the 1st online financing service in China through All in One Net, an online payment method, which set up the basic operating pattern of China online banking. On October 1997, the Industrial and Commercial Bank of China (ICBC) established its own homepage on Internet to promote its financing services and to provide business guide for Internet users. March 1998, Bank of China successfully handled its first e-transaction.To 1999, all major banks in China had sped up their online banking construction. To date, online banking has made good progress in China. According to statistics from the recently seminar called International Symposium on the Development of Online Banking and Supervision sponsored by China Banking Regulatory Commission, Chinas online bank transactions are expected to reach 20 trillion yuan (about 2. 4 trillion US dollars) by the end of this year. Currently, China has over 40 million individuals and 60,000 companies and institutions involved in online banking businesses.In 2003, Internet-based banking businesses have witnessed a big step forward, owing to the outbreak of SARS (Severe Acute Respiratory Syndrome). Traditionally, Chinese have placed a premium on face-to-face meeting for important business-related matters, but the SARS crisis has forced people to change their attitude. Online Banking Development in China China is in the early stages of a vast transformation from a traditional cash and carry banking system where customers use the branches for almost every banking activity to a modern Internet banking system.Currently, more than 50 commercial banks (domestic and foreign) and over 200 of their branches in China have opened websites, among which, a total of over 50 banks have launched online businesses. The Growth of Online Banking Customers in China Chinas online bank transactions were 14. 3 billion yuan in 2001, increased to 21. 8 billion yuan in 2003, and are expected to reach 20 trillion yuan (about 2. 4 trillion US dollars) by the end of this year. Figure 3. 1 The Growth of Online Banking Customers in China Online Shopping Payment Methods in ChinaAccording to a survey made by China Internet Network Info rmation Center (CNNIC), payment online by credit card and deposit card is becoming the 1st choice for online purchasing. The traditional payment method of payment on delivery by cash and postal remittance decreased 3. 7% this year. Figure 3. 2 Online Purchasing Payment Methods in China An analysis shows that security and service abilities are the main concerns for Chinese to use online banking services, 72. 2% of the people inquired care a lot about whether the banks can guarantee the safety of all transactions in their online services, 60.6% hope to see more functions and flexibilities. Figure 3. 3 Factors that that will attract Chinese to use online banking services Both Chinese and foreign banks in China realized that the internet solutions provide clients with more channels to communicate with them and allow them to benefit from greater control and cost efficiency, which are top of mind for treasurers today. Domestic Banks and Their Online Banking Services For many Chinese, bank ing in general is a new experience and in an economy where cash remains important, so bank branches also provide security to customers.However, with accession to the World Trade Organization (WTO), Chinas major banks having to face competition, the local players are increasingly seeing their extensive and heavily manned branch networks as a liability. More and more Chinese banks seem to have discovered the Internet as new source of revenue and the powerful attraction of Internet banking is reflected an attractive proposition. The Chinese bank that has bee quickest off the mark in building Internet banking is China Merchant Bank, which launched the first online financing service in China in 1996.The four state-owned commercial banks quickly followed and successively began to offer some online services since then. May 2000, the Agricultural Bank of China (ABC) implemented a trial Internet banking service in its Guangzhou Branch, which allowed their customers in Guangdong province to a ccess their account through Internet. December 2000, ABC launched online banking service in Shanghai called 95599 Online Bank. The new service of 95599 Online bank has reportedly attracted a number of large corporate clients, such as China Worldbest Group and Shanghai Volkswagen.The services offered include currency exchange, personal cheque issuance and access to consumer loans. Users can also report the loss of certificates of deposit, bankbooks and bankcards as well as prearrange withdrawals of cash sums. At the same time, China Construction Bank (CCB) announced its plans to extend its online banking services to 15 cities in the mainland as well as simplify the process of related authentication in a bid to boost the number of clients using online services.The bank began offering online services in April 2000 in cities of Beijing, Guangzhou, Shenzhen and Qingdao. Last year, the Industrial and Commercial Bank of China (ICBC) unveiled a new platform for its personal online banking b usiness emailprotected ICBC officials said the upgraded e-banking platform could facilitate a key shift of the banks outlets from all-round functions to sales-orientated services, and gives it a firmer foothold in a market with intensifying foreign competition.ICBC officials said the 58-function brand-name allows almost all services a traditional banking outlet offers to be processed by the client on the computer, including 24-hour any-amount transfers of funds or remittances, securities and foreign currency trading as well as collateralized loans. Figure 3. 4 Internet Services provided by the 4 state-owned commercial banks Name Website URL Language Internet Services The Agricultural Bank of China (ABC) www. abocn. com Chinese Simplified Banking industry news and website news, Regulation for foreign currency depositsLink to online banking Bank of China (BOC) www. bank-of-china. com Chinese Simplified English Link to branch offices in other cities and provinces Link to E-banking services Cash management Information on the bank and its activities Information on credit card deposits online and phone banking, loans and remittances. China Construction Bank www. ccb-on-line. com Chinese Simplified English Links to exchange rates, stock quotes, deposit rates, loan rates, bank fees. Link to branch offices in other cities and provinces Credit card informationInternational Operations such as financing, merchant banking, international settlements, currency exchange, treasury services, credit investigations Information on oversea branches and domestic branches that conduct international transactions Foreign currency deposit, multi-currency remittances, account settlement and term deposit. Link to online banking and payment The Industrial and Commercial Bank of China (ICBC) www. icbc. com. cn Chinese Simplified Chinese Traditional English Link to branch offices in other cities and provinces Link to online bank services personal banking, corporate BankingInformati on on E-banking Online financing Links to exchange rates, stock quotes, deposit rates, loan rates, bank fees. Foreign Banks and Their Online Banking Services Citibank claims that they are the 1st foreign bank in China that obtained approval from the Peoples Bank of China (PCBC) to offer Internet banking services in China to both domestic and international corporations, as well as consumers. Its Internet banking services provide clients with convenient, easy-to-use, and secure access to banking transactions, 24 hours a day, seven days a week, over the Web.Offering its CitiDirect corporate banking service for cash management, the bank has developed an internet-based payments system specifically for the country. The system enables corporate clients in China to make local currency (renminbi) payment transactions to beneficiaries in over 7000 locations. The system, called Citibank Easy Payments, also delivers various payment and collections reports for clients to view or download into th eir computers. Its Internet-based banking services available in China for corporate and consumer clients includeCitiDirect(r) Online Banking is Citibanks Web-based delivery channel for corporate clients, designed to securely deliver online an ever-expanding array of Citibank transaction products. CitiDirect(r) Online Banking provides access to account information, payment initiation capabilities, collections data, trade finance transactions, and import/export file integration capabilities. CitiDirect(r) replaces traditional electronic banking applications with a single Web-based delivery channel, thereby improving efficiency and reducing costs to clients.Available in 90 countries and 20 languages including traditional and simplified Chinese, CitiDirecti Online Banking gives clients the benefits of real-time processing, robust security and integration with their in-house treasury systems. * Citibank Easy Payments, an Internet-based payment system that allows corporate clients in Chin a to make local currency (Renminbi) payment transactions to beneficiaries in over 7000 locations in China. This system was specifically developed for the China market.Citibank Easy Payments also delivers various payment and collections reports for clients to view or download into their computers. Citibank Easy Payments supports interface with all major Enterprise Resource Planning (ERP) packages such as SAP, Oracle, BPCS as well as locally developed Chinese accounting packages. Citibank. com. cn, an Internet banking portal that allows corporations and consumers to manage their accounts online, make online enquiries or transactions, view customize and personalize pages as well as get online tools and real-time global market information.Global banking group HSBC, Hang Seng Bank and Bank of East Asia received online-banking license and launched online banking service in China on January 2003. This new service allows their customers to check their balances, transfer funds, make time dep osits and account enquiries, check interest and foreign exchange rates, and send remittance instructions through Internet. It is said that more foreign banks, like London-based Standard Chartered Bank, have also received approval to launch online banking services in China, but it is not clear when the emerging market specialist would offer such service.