The Bank of Beijing on 18 September 2013 launched China's first direct bank in Beijing, Xi'an and Jinan. It started direct bank services with the cooperation of Netherlands-based ING Group.
The Bank of Beijing will provide its services remotely via online banking and telephone banking. Meaning, it does not rely on entity outlets. It will also provide access via Automated teller Machines (ATMs) (often through interbank network alliances) mail and mobile.
The new direct banks will basically provide services to retail clients, small and micro enterprises by providing financial products and services.
Direct banking system was already successful in European markets and U.S. markets.
Primary features of Direct Banking
• Direct banking does not rely on entity outlets.
• It provides financial products and services through Internet, Telephones and Automated teller Machines (ATMs).
• Direct bank performs almost all kinds of services provided by traditional bank outlets.
• Direct banking also requires lower operation cost. So, it can offer higher rates of return for customers and enjoy greater competitiveness.