In recent years, China is moving towards an information society leading to the rising demand of diversified financial services from the customers. In light of the opportunity, ICBC has stepped up its efforts in deploying physical outlets and electronic channels in tandem and complementary to each other. The Bank's electronic banking business is moving at breakneck pace. In the first half of 2011, ICBC registered stable growth in the number of customers and transaction turnover for its electronic banking business. Online users of Corporate Internet Banking, Personal Internet Banking and Mobile Banking moved up 14.2%, 11.4% and 30.8% respectively over the end of previous year. ICBC is the first commercial bank in the country securing over 100 million users of Personal Internet Banking. The growing customer base directly drives the electronic banking business at blistering pace. During the first six months of this year, ICBC electronic banking posted a turnover of over RMB 100 trillion, up 21.8% year-on-year. Of which, turnover of Personal Internet Banking and Mobile Banking rose 37.1% and 387%. ICBC keeps on top of the domestic league table.

Beginning from this year, ICBC takes full advantage of electronic banking at the forefront of innovation, said an executive with ICBC. The Bank leverages its advanced IT system and strong technological capabilities to roll out numerous innovative products (iPhone Banking, iPad Banking, Corporate Internet Banking- Industry Edition, e-Map) and upgraded many products and functions in Corporate Internet Banking - VIP Room, ICBC Messenging, Mobile Banking (WAP). iPhone Banking and iPad Banking, once launched, rank No.1 in "Apple Store" among the financial softwares available in China, gaining new ground of new devices, new technologies in electronic banking.

Besides the product innovation, ICBC also forges ahead the innovation in electronic banking service model, focusing on SMS customer service and online customer service starting this year. As a result, turnover of SMS customer service and online customer service has been growing rapidly, capability of providing electronic banking service has been significantly enhanced, customer service experience has been also improved. The robust growth of electronic banking changes ICBC's business model which is based on traditional counter services. Nowadays, nearly 80 million transactions are processed through ICBC electronic banking every day, surpassing the total transactions handled by all ICBC outlets. Electronic banking is becoming a main transaction channel of the Bank. At present, FX trading, third party depositary, buying and selling of precious metal via account are nearly all processed online. Every day, ICBC processes 1.35 million foreign exchange deals and 730,000 third party depositary transactions, trades 368 tons of precious metal via account. Meanwhile, ICBC promotes ATM and self-service terminal aggressively to diversify a large number of counter transactions. Every day on average, more than 17 million transactions are processed through ICBC's ATMs and self-service terminals. Percentages of settlements (transfer/remittances, bill payment) and cash advances by Money Link Card at ATM and self-service terminals are 56% and 70% respectively.

ICBC's electronic banking is also "going global" while ICBC gathering pace in expanding overseas. Electronic banking is now a competitive weapon for the Bank's overseas subsidiaries to tap fresh market. At the end of June, ICBC opens online banking services in 17 overseas subsidiaries, telephone banking services in 5 overseas subsidiaries. Online personal users and corporate clients in overseas subsidiaries increase 19.7% and 16.5% respectively over the end of previous year. In the first half of 2011, ICBC set up an electronic banking center in Guangzhou, providing telephone banking services to overseas customers. ICBC's overseas electronic banking services have been improved significantly, paving the way for the cross-border electronic banking services in the upcoming future.

Background

Electronic Banking Business

Electronic banking is a financial service system based on e-commerce platform and payment system of a bank, a virtual bank differs from the conventional physical bank. Users can access to a range of financial services (transfer, enquiry, remittance, buying/selling, wealth management) through internet, mobile phone, telephone or self-service terminal.

As early as in the 90s of last century, ICBC recognized the deep impact of modern IT technology to the management and development of a commercial bank. ICBC was among the banks in China to start act early in opening ATM cash advance service and telephone banking service. ICBC also set up web portal as an attempt to start electronic banking business. Despite the unpromising prospect of Internet Banking at the time of dot-com bubble burst in 2000, ICBC looked to the development trend of information society and fully realized the big opportunities behind. The Bank made a major decision to push ahead electronic banking. In June 2000, ICBC set up Electronic Banking Executive Office. Since then, ICBC's electronic banking business is progressing under "unified planning, unified management, unified development and unified marketing".

Over the course of a decade, ICBC's electronic banking sustains heady growth. During the period, ICBC has built an online service channel made up of internet banking, telephone banking, mobile banking and self-service banking, a system encompassing electronic banking products, market, services and risk management. The Bank has sought a unique innovative growth path of "mouse + cement" and opened a new era for banks in China to go for online services.

Electronic banking business not only drives the innovation of ICBC service channel, but the innovations on business model and product as well. Electronic banking is now a gathering place for ICBC's financial innovations. Each year, ICBC launches tens of new products backed by its best-in-class IT system and strong research capability. Besides moving many counter products online, ICBC also develops a large number of special products designed for online delivery and creates many "industry first" - corporate internet banking, 95588 Telephone Banking, USB-Shield and code card. ICBC maintains leading edge in its electronic Banking product functions, always one step ahead of others in opening new market and business growth. Today, ICBC Electronic Banking is the wind vane of innovation for the other banks in China.

At present, ICBC Electronic Banking is No.1 in the domestic ranking, having the richest products and functions, the highest number of customers, the largest market share and the most efficiency. Being an important component of ICBC's core competence, ICBC Electronic Banking has made significant contribution to the Bank's operating efficiency and service level, and created new experience, new value for the customers, winning all the recognition and applause from all. "Best Global Corporate Banking Site", "Best Global Deposit Service Internet Bank" are among the numerous acclaims that ICBC received from international well-known media many times for its electronic banking. "Best Consumer Internet Bank of China" by Global Finance for eight years in a row.