Cloud Computing Strategies in the Chinese Banking Industry: Opportunities for Innovation

by Hua Zhang, January 17, 2014
Industry Trends
Asia-Pacific

Abstract

SaaS-based systems are widely used by Chinese banks, including large joint-stock banks, city banks, and rural banks. Some cloud-enabled business models have also emerged.

In the report Cloud Computing Strategies in the Chinese Banking Industry: Opportunities for Innovation, Celent examines usage of cloud computing at Chinese banks, cloud vendors’ strategies, and cloud-enabled innovations.

There are many examples of cloud usage by Chinese banks. Digital China Financial has already established a data center in Xi’an to tap into the rural banking market. Shandong Provincial City Commercial Banks Alliance developed a single, multibank comprehensive business system for its member banks. Aliyun and Alipay are now making preparations to jointly export cloud computing services. China UnionPay Data also plans to develop more SaaS-based services, including fraud detection, risk management, hosting, and call centers.

“Most cloud computing services currently employ shared IT to reduce costs,” says Hua Zhang, Analyst with Celent’s Asian Financial Services Group and author of the report. “In the future, banks may also use shared business processes and hardware to reduce overall operating costs. For example, banks can share branches and back offices. When Bank A’s branch is busy, a client from Bank A can visit Bank B to perform business transactions.”

This report provides an overview of China’s cloud computing market, profiling examples of cloud computing in Chinese banks, and examining vendors’ 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 subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

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Michele Pace
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Europe (London)
Chris Williams
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Asia (Tokyo)
Yumi Nagaoka
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Table of Contents

Executive Summary

1

SaaS Services for Small and Medium Banks

2

 

The Small and Medium Banking Market in China

2

 

The SaaS Core Banking System of Digital China Financial

3

Shared Service Centers at City Banks

4

XTools Collaborates with Minsheng

6

Ali Pushes Pot of Gold Plan

7

Leveraging the Cloud for Sectorwide Utilities

8

Bank Card Services

9

 

China UnionPay Data

9

Cloud-Enabled Services Provided by Banks

11

 

Providing a Better User Experience

11

 

Providing Card Management Services for Merchants

12

 

Providing Financial Management for Small and Microenterprises

12

 

Targeting Supply Chain Enterprises

13

Conclusion

15

Leveraging Celent’s Expertise

16

 

Support for Financial Institutions

16

 

Support for Vendors

16

Related Celent Research

17

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