From Search Giant to Banking, Baidu and Citic Bank to Launch Online Bank

Reports from Chinese media are sourcing that Baidu and Citic Bank are cooperating to launch an online bank. The arrival of Baidu into the financial services sector would add to the Chinese search giant’s list of businesses it operates. Beyond its search and advertising portal, the firm operates an array of web-based businesses including the sale of anti-virus software and operating an app marketplace.

Working with state controlled Citic Bank, by launching an online bank, Baidu will become the latest Chinese internet company to become involved with financial services. With their massive community of users, companies such as Tencent which operates WeChat as well as Alibaba have created payment and banking products. By entering the financial industry as well as other industries, these firms are aiming to Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term their user base with the goal of bundling suites of products to increase the stickiness of their customers to remain on their platforms.

The interest in financial services also comes as China represents the largest country of smartphone growth in terms of unit growth. As such, online banks which handle deposit, Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term and loans have the potential of becoming in public demand as they migrate more of their life habits to their phones.

However, despite the growth in mobile, online banks in the country may counter friction from the public to move their banking online as according to statistics from the World Bank, as of 2014, 79% of the Chinese population above 14 years of age have accounts at a financial institution. Therefore, the vast majority of the banking public will need to be convinced about the benefits of moving online. So far, early results from Alibaba and Tencent have yet to show meaningful uptake for their online banking services.