Staff members of a bank offer business service. Chinese commercial banks are competing against each other to seize a share in a market catering for overseas financial needs, as they hope to attract more high-end clients. (Photo/Beijing News)
(ECNS) -- Chinese commercial banks are competing against each other to seize a share in a market catering for overseas financial needs, as they hope to attract more high-end clients, Beijing News reported on Wednesday.
May and June are two key months for banks' overseas financial services as outbound tourism and overseas education come together.
According to the latest statistics from China's Ministry of Education, about 460,000 Chinese went abroad for studies in 2014, an increase of 45 900, or 11 percent, from 2013. Of those who studied abroad, 420 000 did so at their own expense.
Chinese banks see big opportunities in the market. Since early last year, many have upgraded their one-stop finance services for locals going abroad to study, covering the whole process from examinations to education planning, language improvement, school choices, visa applications, preparations before departure and even the purchase of overseas properties and employment after graduation, the report stated.
Industrial and Commercial Bank of China (ICBC), the world's largest bank by market capitalization, is rolling out a variety of products in this field by taking advantage of its global position.
A client service staff member told the newspaper that ICBC is cooperating with more than 1,000 overseas banks and that its branches across the world can provide one-stop finance services, including deposits, remittances, bank cards, currency exchange, online banking, financial management and loans, to Chinese students.
Since a tie-up with the New Oriental Education and Technology Group in 2011, China CITIC Bank has been offering services in language training, overseas study planning, school applications and financial matters. In March 2014, the bank set up a parents' association for Chinese students in North America, providing a full range of services for parents who want to or have sent their children to study abroad.
Other banks, such as Bank of China and China Everbright Bank, have debuted Internet-based and mobile services in this field to avoid crowds at counters.
Insiders say overseas education services only account for a small portion of retailing business. Instead of expecting high profits from the business itself, banks are hoping the services will bring in more quality client resources to pave the way for a wider range of other financial services, which can be more lucrative.
A previous research report by the Boston Consulting Group found that among China's high net worth individuals, about 60 percent have migrated abroad or are planning to do so, while 42 percent want to send their children abroad for education.
