First of Three Private Banks Opened in Qianhai

First of Three Private Banks Opened in QianhaiChina’s first private online bank WeBank had its soft opening in Qianhai last Sunday, and the bank is one of the three private banks in China that is given approval by the China Banking Regulatory Commission last July. The bank’s office is located in Tianxia International Center building that was open for business only for the purpose of inviting clients. So far users of the banks  services are limited to shareholders and employees.

The first challenge for the bank will be the infrastructure construction, with no brick and mortar locations for its customers, the bank will mainly handle clients requests for banking services online through face identification technology, thus making it different from other traditional banking services that required clients to go to the banks. But online business such as these will encounter a policy barrier is based on the current regulations that requires clients to open accounts at the bank’s office.

A professor of economics at the Central University of Finance and Economics said that is its best to follow the trend of online banking and to overcome the policy barrier as long as the customers money can be protected. Credibility construction is also an issue the online finance sector faces. Several insiders say that the establishment of WeBank is indeed a challenge to current regulatory policies with regards to clients credibility.

The bank will be applying big data analysis to distribute loans to clients that re identified through face recognition technology. A representative for the bank said that he bank’s big data system accumulated 40 trillion pieces of information by leveraging on Tencent’s customers base. Such as log in information, payment histories, victual assets, tracking online shopping habits and online social interactions to create credibility reports based on online behaviors.

Compared with client information that are kept by traditional banks, information are collected from social networks is incomplete and it’s a convention that data from social networks only accounts for a small proportion of online financing organizations risk management.

Comments are closed

The Contributor

Follow me on twitter: TriaSasin

    Connect with Jasmin:
  1. - Google+: jsasin
  2. - Email: Click here

Have Your Say!

Which part of Shenzhen has the best quality of life for foreigners?

View Results

Loading ... Loading ...

  1. how can i merge google plus and facebook: Another critical feature to recognize at Plus One headquarters is...
  2. W.P: Your mother is a great woman!I hope I can have a mother like her!
  3. Sophia yu: Totally agreed that money doesn’t buy happiness
  4. Joe Hung: I think your composition is good.It is inspirational.I think you are hard working when you do this...
  5. Sugar: Thanks!