Banks can't ignore online competition

The emergence of Internet-based financial services in the second quarter of 2013 has radically disrupted China's traditional banking and investment market. Whether they choose to cooperate with or compete against the country's emergent e-finance platforms, commercial lenders have had little choice but to enter the fray.

Many banks have advanced into the booming field of online finance for themselves. Bank of Beijing, for example, launched an online credit product late last month. CITIC Bank, China Everbright Bank and several others are now said to be exploring similar services of their own.

Many small businesses lack the assets that are usually required to borrow from the country's large lenders. Shifting credit services into the online world will ease funding constraints on these companies and encourage banks to embrace financial sector reforms.

Banking insiders have already tipped lack of competitive technologies and weak user interfaces as their main online shortcomings. To overcome these problems, banks should integrate online and offline services into one unified client experience.