Alibabas approval to set up private bank fires up the competition

Currently, 11 traditional banks in China have set up online banking systems. Industry insiders believe that by mid-2015, when the new model of financial services will replace the traditional one to become the mainstream format, more than 30 banks will have their online banking networks set up.

Looking into the user interfaces of China’s online banking services, the websites provide customers access to information from multiple back-end systems. Once they register their mobile phone numbers or personal identification numbers, customers can carry out transactions such as credit card payments, purchase of mutual fund and deposit products and also apply for loans.

Taiwan is also developing its online banking sector, with plans to allow the purchase of insurance and mutual funds and to allow applications for micro-loans online. It also plans to launch online financial products such as the Taiwanese version of Yu’ebao, an online monetary fund operated by Alibaba.