Two banks announced the suspension of cash business, which released what signal? Below we will address this issue for some discussion, I hope these contents can help friends in need.
Many signs indicate that because of the control of the new policy many private banks suffered a relatively large survival work pressure, digital transformation without delay. Zhongguancun Bank, Liaoning Zhenxing Bank first got rid of the first step to abandon the cash business, or also give a large number of private banks to reference. Smaller scale, and therefore more flexible in management decision-making, which is also an important advantage of the private banks can be adaptive and market-oriented.
Very suddenly, two financial institutions announced the closure of their bank counters and ATM cash businesses a year ago. These two financial institutions are private banks, one is the first private bank approved for construction in Beijing - Zhongguancun Bank, and the other is the first private bank in Liaoning Province - Liaoning Zhenxing Bank.
The Zhongguancun Bank said in a news release that along with the bank's accelerated pace of digital transformation, continue to increase the magnitude of the online business development trend, in order to better give users a more convenient and efficient financial information services, latitude and longitude to the relevant supervisory bodies to report, the bank will be April 1, 2022 onwards to stop the recruitment of cash receipts and payments business, the suspension of the recruitment of ways to include the service network of the bank's counters and ATM machine self-service mode. This bank ATM machine self-service mode.
From April 1, 2022, customers can apply for all kinds of business other than cash collection and payment according to the APP on the cell phone of Zhongguancun Bank and the service network; customers who need to go through the cash service items can apply for transferring money to other banks according to this bank, and are exempted from transferring handling fees.
No coincidence, Zhongguancun Bank released the news three weeks ago, Liaoning Zhenxing Bank had also announced that, in order to centralize resources to improve the service capacity of mobile banking for guests to give a more excellent financial information services, by the People's Bank of China in charge of the approval of the bank will stop recruiting bank counters on March 1, 2022, cash withdrawals, change of change, exchange of mutilated coins, self-service devices withdrawals and other cash operations. If you have a Liaoning Zhenxing Bank savings card, you can continue to apply for cash withdrawals at ATMs of other banks with the "China UnionPay" logo.
The above two financial institutions established in the announcement that the suspension of the cash business is due to the need to "increase the magnitude of the development trend of the online business" and "centralize the resources to improve the service capacity of mobile banking".
Digital transformation is undoubtedly one of the two financial institutions discontinued cash business factors, but another reason is also clear - along with the Internet technology savings are called off, private banks field deposit, loan indoor space is blocked to alleviate the cost of offline promotion of business outlets to ease the pressure of the work is undoubtedly also the strategy.
A private bank personnel to the news reporter indicates, for the vast majority of private banks, the service desk, bank tellers, cash escort and other cost fees are likely to be far higher than the cash business, "cash escort spending is likely to be more than the escorted cash."
Combined with the increasing withdrawal of cash from our daily lives, online payments are becoming popular. According to McKinsey's Global Payments Report 2020, China's share of cash in all payment purchases and sales will decrease from 99 percent in 2010 to 41 percent in 2020.
There are many signs that many private banks are experiencing greater pressure to survive due to new regulatory policies, and that digital transformation cannot be delayed. Zhongguancun Bank, Liaoning Zhenxing Bank first got rid of the first step to abandon the cash business, or also give a large number of private banks to reference. Smaller scale, and therefore more flexible in management decision-making, which is also an important advantage of private banks can be adaptive and market-oriented.
Published materials show that Beijing Zhongguancun Bank was founded by 11 A-share-listed companies, including UFIDA and Bishuiyuan, and is the 13th private bank across the country and the first in Beijing to be authorized to open, as well as the first financial institution across the country to focus on independent innovation in service projects.2021 In the first half of the year, the bank completed its main business income of 577 million yuan, with a net profit of 119 million yuan in the same period. In the first half of 2021, BGCCB completed its main business income of RMB577 million, and net profit of RMB119 million in the same period. By the end of June 2021, the total assets of Zhongguancun Bank operated at RMB 45.963 billion.
Liaoning Zhenxing Bank was initiated by five companies, Shenyang Rongsheng Huaxin Industrial Company, Shenyang Tianxinhao High-Tech, Shenyang Qiyuan Industrial Pump Research Institute, Shenyang Jinfederal Medical Equipment, and Shenyang Zhirongtong Network Technology, and on November 24, 2017, it was announced that it would open its operations to the public. By the end of 2020, this bank had total assets of RMB 27.118 billion, an increase of 3.41% year-on-year, and accomplished main business income of RMB 819 million, an increase of 14.19% year-on-year. It is understood that net profit from loan interest is the key source of this bank's main business income.