State-owned Banks in China Invest over US$ 1 Billion Dollars in FinTech Annually
- by Ellis Odynn
- 4 April 2019
Several state-owned banks in China recently announced they are boosting FinTech investments to cater to new financial technology services. So far the China Construction Bank, China CITIC Bank, Ping An Bank, The Industrial Bank, and China Merchants Bank have setup wholly owned subsidiary companies that create FinTech for the bank. These banks have launched retail services in Hong Kong, Macau, and Guangdong Province.
At China Construction Bank, their FinTech investment was 2% of their operating income, and is expected to get as high as 20% in the next year.
China Merchants Bank, said it spent almost US$ 1 billion dollars last year to develop its own FinTech. Many Banks are also beginning to enter into Blockchain platform development.