Is it better for foreign banks or Chinese banks?

Business: The business scope of foreign banks should still be within the scope permitted by the People's Bank of China. Without privilege, domestic banks still respond quickly to new business.

Bookkeeping system: this is the key to the bank, but it is not the key. Because it's not much worse. Moreover, in recent years, the national centralized systems of various banks have introduced foreign advanced system design concepts, and several of them are made by IBM.

System: this domestic bank has a foundation, and foreign banks need to invest a lot to build a national networking system, but foreign banks are even worse. For example, domestic institutions of foreign banks are still entrusting domestic banks as their remittance agents.

Outlets: Foreign banks will definitely not open outlets to domestic banks, so their targets may focus on domestic high-income groups and foreign-funded enterprises. This has an impact on domestic banks.

Among the profits of foreign banks, the loan difference accounts for less than 50%, and the rest depends on intermediary business income, such as card handling (discount) fees and bill delivery, and the settlement fee is also very high. Domestic enterprises (individuals) can't accept it in a short time. Domestic banks' intermediary business income accounts for less than 20%. So it is also charging now.

So I think it will have an impact, but it won't be too big. Domestic banks will also learn some advanced things from the impact (competition).

The following article should be able to answer your question:

(1) Expert: Chinese and foreign banks have their own advantages/article/tbgz/200612/1246.html.

(2) How to deal with the challenges after the entry of foreign banks?

/Article/tbgz/2006 12/ 1030 . html

(3) Chinese banks and foreign banks

/Article/tbgz/2006 12/80 1 . html

(4) The fifth anniversary of China's entry into WTO: the banking industry waits for the second boot to land.

/Article/tbgz/2006 12/802 . html

You should also find more related articles on China Payment Industry Information Network (www.ipayi.com).

References:

65438+February 1 1, China fully opened RMB business to foreign banks. China people can also deposit RMB in foreign banks and apply for credit cards. For most China people who have never enjoyed the service of "foreign banks", what changes will happen to our economic life? The reporter recently interviewed some insiders and Chinese and foreign banks.

Chinese banks may be more affordable.

If Chinese banks and foreign banks are put together, most people will say that the advantages of foreign banks are elegant and comfortable environment, rich products, high quality employees and good attitude, and of course the fees are relatively expensive. Insiders reminded that ordinary people should not be too superstitious about foreign banks.

First of all, the outlets of foreign banks will certainly not blossom everywhere like Chinese banks. For those customers who are not used to using online banking, telephone banking and self-service equipment, it will be very inconvenient to handle business.

Secondly, high-quality financial consultants hired by foreign banks with high salaries are often only aimed at large customers with rich assets, and "VIP" customers can really enjoy good services. The number of grass-roots staff may be small, and their professional knowledge may not be as rich as expected.

In addition, foreign banks are likely to continue their foreign service habits, set up many charging items and set different charging standards for customers with different strengths. For ordinary people who are used to enjoying the charging system of Chinese banks, they may not be able to adapt immediately. It may not be worthwhile.

Finally, Chinese banks will gradually improve their service level in the competition with foreign banks. If there is no special demand for the services of foreign banks, it may be more convenient and affordable to stay in Chinese banks.

Foreign banks like rich people.

There is a "28 law" in banking business, that is, 20% customers create 80% profits, which has become the knowledge of the financial industry. When foreign banks first entered China, the number of outlets was not as good as that of Chinese banks due to cost, talent and other factors. Naturally, they have to work hard on high-end customers.

Therefore, Tsinghua University EMBA distinguished professor Liang believes that after some foreign banks are allowed to operate RMB retail business, the opportunities that ordinary people may contact are very limited. Liang introduced that taking Citibank's operation in the United States as an example, when the bank absorbs deposits, it will charge account management fees to customers with deposits below $5,000. On the contrary, it provides various value-added services to high-end customers for free.

According to the reporter's understanding, in the case that RMB business has not been fully opened, foreign banks that entered the mainland in advance have adopted such a strategy. At present, foreign banks such as Citigroup, HSBC and Standard Chartered are vigorously developing VIP wealth management business in China. The threshold is either $50,000 or more than $654.38+10,000.

Of course, VIP customers can indeed enjoy the "supreme courtesy" in foreign banks. For example, there are one-on-one professional financial consultants and even teams to provide tailor-made consulting services, covering investment fields such as stocks, bonds, funds and real estate. In addition, the daily needs of VIP customers are also considered. For example, HSBC can provide VIP customers with services such as booking sports events, concerts, stage plays and golf courses.

Of course, in recent years, Chinese banks have begun to pay attention to the rich with deep pockets, and banks have also set up wealth management centers, with thresholds ranging from 200,000 yuan to 300,000 yuan to 500,000 yuan. However, some experts pointed out that in the face of aggressive foreign banks, the wealth management services provided by Chinese banks are still at the conceptual packaging level and general service level, and it is difficult to provide expert services that really satisfy customers, especially high-end customers.

Foreign banks like charging services.

"Inter-bank withdrawal fee", "inter-bank inquiry fee" and "small account management fee" ... In the past two years, banks will be criticized by all walks of life as long as they open new charging items. Take "small account management fee" as an example. Basically, if the average daily account balance in a quarter is lower than that in 300 yuan or 500 yuan, Chinese banks need to pay 3 yuan's account management fee every quarter. What are foreign banks doing in China now?

The reporter learned from Citibank China website that if the average daily balance of the total consolidated account is less than 654.38+0000 USD or equivalent foreign currency, the monthly account management fee needs to be paid in 50 yuan RMB, and VIP customers need to have an average daily deposit balance of 50,000 USD or equivalent foreign currency. Otherwise, Citigroup will charge an account management fee of 654.38+000 RMB per month. HSBC has similar regulations. The average daily balance of general accounts should be above 65,438 yuan +0.6 million yuan, and the average daily balance of wealth management accounts should be at least 400,000 yuan. Otherwise, account service fees of 55 yuan/month and 65438 yuan +0.00 yuan/month will be charged respectively.

The reporter learned from the list of charges that Standard Chartered Bank started to implement in Hong Kong last year (1 1) that the threshold for small accounts of Standard Chartered in Hong Kong is 100 Hong Kong dollars, and the charging standard is 100 Hong Kong dollars per month. There are also some charging items that Chinese banks do not have. For example, if a customer deposits more than HK$ 50,000 a day, he must pay a large cash deposit fee of 0.5% of the total deposit.

At present, only ICBC has explicitly proposed that the annual 300 yuan management fee will be charged if the average daily balance of the wealth management account is less than 200,000 yuan next year. Standard Chartered Bank also charges different levels of wealth management customers, such as the highest priority wealth management account. If the average daily comprehensive balance in the last three months is less than 800,000 Hong Kong dollars, the service fee of 600 yuan Hong Kong dollars will be charged every quarter.

Foreign banks like to clearly mark their prices.

Foreign banks charge much more than Chinese banks, and there are many projects, but they are all clearly marked. The receptionist will clearly tell customers whether they are qualified to open an account and under what conditions they can enjoy free or other preferential services. Different levels of customers enjoy different services, and there are very clear explanations. Even if it is a short message reminder of insufficient deposit balance or due time deposit, the manual also gives examples to explain what the short message format is and what each line of text or code means. Comparatively speaking, Chinese banks suddenly raise fees, which obviously lacks respect for consumers.

Some insiders also believe that after foreign banks enter, they will not rule out adopting low-price strategies to seize the market and avoid some expenses. However, because the detailed rules for the implementation of the Regulations on Foreign Banks have not yet been published, banks are temporarily unable to determine their specific business arrangements.

Foreign banks like customers to borrow money.

Two days ago, the President of Standard Chartered Bank in China said that Standard Chartered Bank plans to continue to expand its business network in the Mainland and launch a variety of personal banking products after applying for approval and obtaining a license to provide RMB services to local customers in 2007. She said: "Standard Chartered Bank has expertise in many personal banking products, such as wealth management, mortgages, credit cards and personal loans." The latter three products, in layman's terms, are all loans from banks.

Recently, the Asia-Pacific Economic and Market Analysis Department of Citigroup released a new research report. The report pointed out some changes in China's financial services, including the rapid growth of consumer credit. With advanced technology, foreign banks can better evaluate customers, which may lead this wave of consumer credit, which will increase the consumption-income ratio of some families and promote new consumer products and services. After the reorganization of China's banking industry, domestic banks will also join the consumer credit market.

In fact, credit cards and mortgages are also good sources of profits for all banks. In the past year, Chinese banks have frequently introduced new products such as "biweekly loan", "revolving loan" and "borrowing and returning" in the field of personal mortgage, which is dazzling. In addition, the credit card war between banks is becoming more and more fierce, and it is quite exciting to give gifts with points, free of annual fees and open cards with prizes.

Limited by various factors, there are still a large number of foreign credit products that have not entered the China market. For example, some foreign banks can provide temporary overdraft services to overseas wealth management account customers, and the overdraft amount is as high as 95% of the deposits in the customer's name. Not only can they pay for the transfer, but they can also withdraw cash, and the procedures are very simple.

It can be predicted that foreign banks will actively attack in the fields of credit card, personal mortgage, consumer loan and so on after fully carrying out RMB business, and compete fiercely with Chinese banks. Their advantages are also very obvious: the parent bank's international network, rich management experience, excellent product research and development capabilities and excellent marketing service level, as well as brand influence created by time and strength.

Distribution Table of Beijing Branch of Some Foreign Banks

Name orientation

Hongkong and Shanghai Banking Corporation COFCO Plaza Guo Mao Shopping Mall Zhongguancun

Zhongguancun Kerry Center, Guanghua Chang 'an Building, Citibank

Standard chartered bank Zhongguancun oriental plaza yansha center

Swiss bank international trade building

Bank of Tokyo Mitsubishi Development Building

Nagatomiya, Japan Industrial Bank

Bank of Montreal Oriental Plaza Branch

BNP Paribas International Trade Building

Singapore Development Bank International Trade Building

ABN Americas Regional Office Kerry Center

Guanghua Chang 'an Building, Chase Bank, USA

BNP Paribas International Trade Building

Deutsche Bank International Trade Building

Bank of America International Trade Building

Japan Mizuho Industrial Bank Changfugong

Bank of America International Building

Henderson Center in korea exchange bank

Li Jingyuan Nanyang Commercial Bank