China's central bank has said it will allow the long-awaited option of opening a bank account without visiting a bank branch. (Photo/Southern Metropolis Daily)
{ECNS) - China's central bank has said it will allow the long-awaited option of opening a bank account without visiting a bank branch, the Southern Metropolis Daily reported Monday.
A draft circular by the central bank has given the go-ahead to opening accounts online, a boost to newly emerging Internet banks such as WeBank, which is supported by Internet giant Tencent.
The circular says banks must ensure the authenticity of an account holder's identity as a priority. It says real names help curb corruption, financial fraud and money laundering.
Opening bank accounts at a branch would still be preferred, while an online service would be an auxiliary method, according to the policy.
A person in charge of electronic banking in Guangzhou said the central bank will not fully allow the opening of accounts online, because of the risks.
Banks are also banned from offering the service to non-residents or citizens living abroad.
The circular urges banks to adopt modern and safe technology, heeding state and commercial data when referencing an applicant's identity.
Guo Tianyong, a professor at the Central University of Finance and Economics, said the breakthrough point for Internet banks will be to establish a reliable online identification system for customers.
Tencent and Alibaba, China's largest e-commerce companies, are both researching facial recognition technology that can serve as a pay-by-face authentication system.
The time may not be far away when a customer can access their bank account by simply "swiping" their face, the newspaper said.
