Asia: Xiaomi to launch an online only bank service

Xiaomi, one of the popular tech companies in China who is known for making smartphones and home appliances just announced its plan to launch an online bank which will be backed by Xiaomi. The bank will be named Sichuan XW Bank. This bank will operate through online channels only and targeted to attract the under-serviced segments, customers and small medium enterprise in a country where most banks are owned by government and serve state enterprises, making small private companies difficult to get a loan. Apparently, this is not the first time where a technology company launched an extension to their service. The same approach has been one made by WeBank – backed by Tencent Holdings who first launched the online-only bank in 2015, followed by MYBank by Alibaba Group in the same year.

...one out of four customers intend to switch from their main bank in the next 12 months. This intention has been stronger in the past two years with 26% of potential switchers looking for more accessibility and cited 24% for product variety.


RFi Group data from H2 2016 Retail Banking Council shows that one out of four customers intend to switch from their main bank in the next 12 months. This intention has been stronger in the past two years with 26% of potential switchers looking for more accessibility and cited 24% for product variety.


Source: RFi Group – China Retail Banking Council

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