Five of China’s established big state-owned banks have already launched their own fintech subsidiaries amidst a broader shift towards adoption of fintech measures by the Chinese finance sector as a whole.
On 28 July Agricultural Bank of China (ABC) announced the official launched of “ABC Fintech Co., Ltd.” (农银金融科技有限责任公司), with registered capital of 600 million yuan.
The new subsidiary is headquartered in Beijing’s Tongzhou district, and its main business operations include “use of fintech methodologies; undertaking technological innovation, software research and development, product operation and technical consultancy.”
According to a public announcement by ABC the new fintech subsidiary will “accelerate business model transfer, unleash fintech innovation vigour, and cultivate core competitiveness in fintech.”
The move by ABC means that all five of China’s long-established big five state-owned banks have established their own fintech subsidiaries, with the other companies including:
- Jianxin Fintech Co., Ltd. (建新金融科技有限责任公司), established by China Construction Bank in Shanghai in April 2018 with registered capital of 1.6 billion yuan;
- ICBC Tech Co., Ltd. (工银科技有限责任公司), established by ICBC in the Xiong’an New Area in May 2019 with registered capital of 600 billion yuan;
- BOC Fintech Co., Ltd. (中银金融科技有限公司), established by Bank of China in Shanghai in June 2020;
- BOCOM Fintech Co., Ltd. (交银金融科技有限公司), established by Bank of Communications in January 2020 with a capital contribution of 600 million yuan.