China Mobile Phone Banking Vs. Mobile Payment

Introduction

Starting from 2011, mobile phone banking has been touted as a core business strategy by all major banks in China.

However, due to the banking sector’s huge industry chain which results in early competition for industry standard, hardware platform and the more recent, complicated game between mobile phone banking and WeChat banking, its development process has been hampered and killer products are no where to been seen.

1. China Mobile Phone Banking & Mobile Payment Transactions

• Mobile phone banking transactions topped 12.7 trillion Yan (US$200 trillion) in 2013, while 3rd party mobile

payment 3 made only 1.2 trillion Yuan (US$193 billion)

• The growth rate of 3rd party mobile payment transactions is 8 times that of mobile phone banking

2. Monthly Avg. No. of Users Covered

• By April 2014, monthly average users per day of Alipay app have reached 56.25 million

• The number of users of all mobile phone banking apps combined is only 23.04 million

• Except for June 2013 and April 2014, the growth rate of monthly average Alipay users per day outstripped that of mobile phone banking.

3. Top 4 Monthly Avg. No. of Use

• By April 2014, monthly average number of Alipay app use per day toped 2.35

• By the same standard the number is only 1.74 for the most used Merchant Bank app

4. Top 3 Functions Used

For services provided, the 3 most used functions of mobile phone banking and 3rd party mobile payment are highly overlapped

5. Future E-banking Product Design

• The key to the success of e-banking in the future: To highlight unique features and improve user experience

• Identify new market position. Banks should find a way to integrate available financial products and provide financial management service by making better analysis of user information

• Use artificial intelligence and technology to improve user experience: Digital technology can help banks identify each user’s total assets at several financial institutions and use such knowledge to provide services such as assets allocation and financial management.

A digital link to your business in China

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