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Analysys: Transaction Size of Online Banking in China in Q2 2016 Reached RMB 618.8 Trillion
The Quarterly Monitoring Report on Online Banking Market in China for Q2 2016 published by the Analysys industry database shows that the transaction size of the online banking customers of China for Q2 2016 reached RMB 618.8 trillion, an increase of 10.6% compared with last period.
  • 17 Nov, 2016
  • Finance
  • 260
Analysys analysis:
The Quarterly Monitoring Report on Online Banking Market in China for Q2 2016 published by the Analysys industry database shows that the transaction size of the online banking customers of China for Q2 2016 reached RMB 618.8 trillion, an increase of 10.6% compared with last period.
The growth in the transaction size of online banking customers in China for Q2 increased somewhat compared with last period, mainly because enterprises restored to normal operations after the holidays, resulting in rising money transfer for transactions. The growth of all banks set right, and the year-on-year growth rate climbed from 9.7% in last quarter to 10.6% in this quarter.
In Q2 2016, Industrial and Commercial Bank of China, China Construction Bank, Bank of Communications, Agricultural Bank of China and Bank of China ranked among top 5, with their large customer accumulation, and have the market share of 71% in total, a slight increase compared with previous quarter. China Merchants Bank ranked sixth, with its market share of 4.6%, followed by China Industrial Bank, China Minsheng Bank and China CITIC Bank.
In terms of product innovation in Q2 2016, China Construction Bank offered a new function of foreign exchange transactions on corporate banking. Upon opening this function, customers can log in corporate banking to handle six foreign exchange transactions, i.e., immediate and forward exchange settlement & sale, immediate and forward foreign exchange trading, exchange rate swap, options on foreign exchange, and so forth; Shanghai Pudong Development Bank developed the online banking platform for transfer of wealth management products, by which the customers across the country can log in the platform to achieve the cross-regional transfer of agreements. This means that customers can cash their immature wealth management products by way of such “transfer“, thus strengthening the liquidity of wealth management products.  
Analysys analysis shows that online banking of commercial banks have continued to deepen the intelligent strategy since 2016. As all banks keep up with their strategy of Internet finance, they either launched a new financial portal or upgraded banking system comprehensively with an effort to smash the “prejudice“ among different bank accounts and constantly enrich the connotation of one-stop comprehensive financial service platforms.
In terms of marketing, the second quarter represented the formal beginning of free time for personal bank transfer. Correspondingly, all banks promoted their banking services on the ground of free bank transfer via personal banking. Specifically, China Everbright Bank announced the zero-charge preferential policy regardless of bank-wide and inter-bank remittances as well as the amount of capital concerned. Postal Savings Bank of China specifies that the bank-wide or inter-bank remittance with a single amount of not more than RMB5,000 (inclusive) transferred via personal banking is exempt from remittance charges, and that for the remittance of more than RMB5,000 is 50% off. Guangdong Development Bank imposes a ceiling limit for transfer fees, specifically, a remittance valued RMB50,000 is exempt from service charge, while the service charge for a remittance exceeding RMB50,000 ranges between RMB3-8.
In opinion of Analysys analysis, the “barrier“ to electronic channels among all banks was further smashed in the course of expansion from mobile banking to online banking. In 2016, the core contents of Rong e Bank was “openness“, namely three open core concepts of “Openness of Customers“, “Openness of Business” and “Openness of Platforms” after upgrading. Non-ICBC customers can experience Rong e Bank easily, and the remittance of not more than RMB5,000 is exempt from service charge; customers can enjoy such financial services without login.
In addition to smashing the barrier among portals, the intelligent application is also further deepened in all online banking of all banks. For example, the upgrading of new personal building of China Construction Bank also enhanced the capacity of system intelligentization, achieved the “online banking intelligent customization services”, recommended the highly-related functions to users and enhanced the accuracy of push message to users. With regard to personal banking, Pudong Development Bank also launched the specialized banking interface according to the assets and preference of users. It not only designs “one-step” menu search but also offers the featured products such as wealth management transfer, investment & wealth management, loans, etc.
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