Big state-owned lender Bank of Communications (BOCOM) has unveiled plans to establish its own fintech subsidiary, following the lead of Bank of China and ICBC.
BOCOM recently announced that its subsidiary Bank of Communications International will invest 600 million yuan (approx. USD$86.6 million) in the establishment of Bank of Communications Fintech Co., Ltd. (交银金融科技有限公司).
The main business scope of Bank of Communications Fintech will include research and development, technical consulting and technical services in the areas of financial information technology, computer technology, internet technology and software technology, as well as IT outsourcing, financial business procedure outsourcing, financial knowledge procedure outsourcing and financial information services.
The move will bring the number of financial institutions in China’s banking sector with fintech subsidiaries to 11 in total.
Chinese banks that have established their own fintech subsidiaries currently include:
- Bank of China,
- Industrial and Commercial Bank of China,
- Industrial Bank Co.,
- China Merchants Bank,
- China Everbright Bank,
- China Minsheng Bank,
- Huaxia Bank,
- Bank of Beijing,
- Ping An Bank.