(ECNS) -- China will try its hand at direct banking through independent legal entities, according to caixin.com on Wednesday, citing the national regulator.
The China Banking Regulatory Commission (CBRC) has organized a conference to consult on issues related to direct banking via independent legal entities. Five major banks were present, including Industrial and Commercial Bank of China, China Minsheng Bank, Bank of Beijing, Hang Seng Bank, and Baoshang Bank.
Direct Banking is a boost for new growth, said a senior official from Bank of Beijing, which now has about 180,000 direct banking customers.
Direct banking services are now being offered by 20 Chinese banks as Internet finance booms. Such banking operates online through phones and computers, so no physical branches are needed. While reducing operational expenses, direct banking also offers better rewards and lower fees for customers.
Most foreign direct banking services are operated by independent legal entities, which run separately from traditional banks. Meanwhile, in China, no direct banking is independent from traditional banks and it is rather an expansion of traditional operations and an upgrade on regular online services. Operating mechanisms and products are set to be similar to those at traditional banks.
