Mid-sized Chinese banks drive cash management capabilities through SME focus
While ICBC remains the frontrunner in China’s cash management business, BOCOM and CMB have also achieved impressive YoY growth figures. March 12, 2013 | Baron LaudermilkAs China’s top four state-owned banks continue to service corporations’ cash management needs, they are now joined by mid-sized, joint-stock banks which aim to increase their market share and become major players in the market. China’s cash management business is currently led by Industrial and Commercial Bank of China (ICBC), as the bank continues to invest in local talent, establish operations across the globe, and by enhance its cash management strategies. With a major lead on the second largest cash management business in China, Bank of China (BoC), by a quite a margin, ICBC’s cash management clients exceed 786,000 (as of September 2012). The bank has managed to retain pole position in the business by establishing four cash management centres in the Asia Pacific region, Europe, US and Africa. The bank has avoided using international IT companies to develop their software, and has instead focused on making best use of its domestic technology staff, with some 12,000 employees hired to develop financial solutions particular to ICBC. The largest bank in China in terms of asset size, ICBC’s main clientele base is made up by corporate clients, which form 80% of its cash management portfolio. However, the bank has vowed to focus on SME lending in an attempt to even out the SME/ corporate cash management ratio. ICBC’s strategy for the year ahead, according to an executive within the bank, is to become a “one-stop” cash management bank for Chinese enterprises and multinational companies looking to venture outside of China. The bank is also attempting to create a unified treasury management platform to offer tailor-made financial services to clients based on their funds inflow, outflow and deposit, as well as help them lower financial management costs, avoid fund operation risks, and improve fund operations. Although ICBC has a clear strategy of what it hopes to achieve, the likes of China Bank of Communications (BOCOM... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Cash, Treasury & Trade, China, Customer Centricity, Data & Analytics, FSI Customer Relationship Management , Technology & Operations, Transaction Bankingcash,China,Customer Centricity,Data & Analytics,FSI Customer Relationship Management ,technology,Transaction Banking, Cash, Treasury & Trade,China,Customer Centricity,Data & Analytics,FSI Customer Relationship Management ,Technology & Operations,Transaction Banking, Keywords:ICBC, BoC, BOCOM, China Merchants Bank ICBC, BoC, BOCOM, China Merchants Bank
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