Cloud-Based Banking in China: Creating a Technology Framework for Innovation

by Hua Zhang, January 30, 2017
Industry Trends
Asia-Pacific

Abstract

By 2020, 60% of systems in China’s banking industry will be deployed in the cloud.

Celent has released a new report titled Cloud-Based Banking in China: Creating a Technology Framework for Innovation. The report was written by Hua Zhang, an Analyst with Celent’s Asian Financial Services practice.

Business models will be restructured with cloud computing technology. The banking industry needs to be further opened up, and pricing and risk controls need to be implemented based on social data. At the same time, banks will be able to provide many nonfinancial services.

In this report, Celent examines the cloud-based banking architecture, business models, channels, and core systems in China. The major changes will be scenario-based channels and data-based core banking systems. Banking channels will no longer be mainly mobile banking and Internet banking, but will be fully integrated into customer services. Banks will become more reliant on data to market and design products; for example, banks will use machine learning technology to carry out customer segmentation and marketing.

“Cloud-based IT systems in banking do not merely move IT systems to the cloud. Instead, they will fully utilize the characteristics of the cloud to develop operations and business models that would not otherwise be supported. The benefits include lowering the cost for the banks, lowering the non-performing loan ratio, and increasing operational efficiency,” says Zhang.

This 20 page report contains five figures and two tables.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Introduction

3

Utilizing the Cloud to Construct Ubiquitous Banking Channels

5

 

Agriculture, Rural, and Farmer Services

5

 

Integrated Service Platforms Targeted at Small and Micro Enterprises

5

 

E-Commerce Services

6

 

Case Study: Micro Cloud Services of Qingdao Rural Commercial Bank

6

Data-Based Business System

10

 

Profile of MYbank

10

 

Business Models of MYbank

10

 

Technical Framework of MYbank

10

 

Operating Results of MYbank

12

Ali Finance Cloud

13

 

Case Study: Wujiang Rural Commercial Bank

13

Conclusion

14

Leveraging Celent’s Expertise

15

 

Support for Financial Institutions

15

 

Support for Vendors

15

Related Celent Research

16

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