Self-Service Strategies in the Chinese Banking Industry

by Hua Zhang, November 25, 2014
Industry Trends
Asia-Pacific

Abstract

The Chinese self-service terminal market experienced a high growth decade. Currently, new market opportunities have reappeared for the whole self-service terminal industry and these mainly include self-service terminals for the rural market, community banks, and third parties. For example, the number of cash recycling systems (CRS) grew from 2,600 in 2004 to 49,000 in 2014.

In the area of building branches, leading banks have already completed their expansion from the top-tier cities to provincial capitals, and even to rural towns and villages. By 2014, the electronic banking diversion rate has reached 70%, with all counter transactions that can be diverted to self-service channels. On the other hand, rising manpower and organizational costs resulted in losses in some branches, and many banks had no choice but to close down some of these branches in order to cut costs. In the report Self-Service Strategies in the Chinese Banking Industry, Celent examines the size of the self-service market, trends, market segments and the competitive landscape.

“Among the self-service terminal equipment, CRS, self-service banking kiosks and VTMs saw the fastest growth.” says Hua Zhang, Analyst with Celent’s Asian Financial Services Group and author of the report. “In the area of operations, the outsourcing of ATM operations is a very important trend with a market size of approximately US$3.3 billion. Celent estimates that about 20% of the newly-added ATMs in the future will appear in the form of outsourcing of operations or lease.”

This report provides an overview of self-service market in China, including discussion of self-service trends and vendor strategies.

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

Market Size

2

Self-Service Equipment Kiosks

3

 

Self-Service Banking Kiosks

3

 

VTMs

4

 

ATM Functionality

5

Trends in Self-Service Banking Operations

6

 

White-Label and Brown-Label ATMs

6

 

Outsourcing of ATM Operations

7

 

Placement

7

New Markets

8

 

Rural Market

8

 

Community Banking

8

 

Self-Service Terminals Spearheaded by Third Parties

9

Providers

11

Conclusion

14

Leveraging Celent’s Expertise

15

 

Support for Financial Institutions

15

 

Support for Vendors

15

Related Celent Research

16

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