Mobile Banking and Payment in China
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Regulatory Responses to the Chinese Shadow Banking Development
View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by Portal Czasopism Naukowych (E-Journals) Jagiellonian Journal of Management vol. 1 (2015), no. 4, pp. 305–317 doi:10.4467/2450114XJJM.15.021.4830 www.ejournals.eu/jjm Regulatory responses to the Chinese shadow banking development Piotr Łasak1 The Jagiellonian University in Kraków, Institute of Economics, Finance and Management Abstract Shadow banking systems were developing rapidly in the Western economies during the last two decades. Research from recent years show that within the last years equally important process of shadow banking development occurs in some emerging markets, and among oth- ers, in China. The system was not only a sophisticated part of China’s financial market, but played very important role in the development of the Chinese economy. The aim of this arti- cle is a description of the mechanisms of shadow banking development in China, character- istics of the main threats of this system and the regulatory approach in the country. Despite many threats, the shadow banking system plays an important role in the Chinese econo- my. There is a need for its regulation and support for further development. Paper type: review article Keywords: Chinese financial market, shadow banking, trust companies, wealth manage- ment products Introduction Shadow banking is evolving mainly in developed countries. The Financial Stabili- ty Board estimates that in 2014 more than 80% of global shadow banking assets re- side in advanced economies (FSB Financial Stability Board, 2015, p. 2). Despite that there are several countries classified as an emerging economy or developing coun- try, where the system is growing very rapidly. -
The Public Banks and People's Bank of China: Confronting
Chapter 13 Godfrey Yeung THE PUBLIC BANKS AND PEOPLE’S BANK OF CHINA: CONFRONTING COVID-19 (IF NOT WITHOUT CONTROVERSY) he outbreak of Covid-19 in Wuhan and its subsequent dom- ino effects due to the lock-down in major cities have had a devastating effect on the Chinese economy. China is an Tinteresting case to illustrate what policy instruments the central bank can deploy through state-owned commercial banks (a form of ‘hybrid’ public banks) to buffer the economic shock during times of crisis. In addition to the standardized practice of liquidity injection into the banking system to maintain its financial viability, the Chi- nese central bank issued two top-down and explicit administra- tive directives to state-owned commercial banks: the minimum quota on lending to small- and medium-sized enterprises (MSEs) and non-profitable lending. Notwithstanding its controversy on loopholes related to such lending practices, these pro-active policy directives provide counter-cyclical lending and appear able to pro- vide short-term relief for SMEs from the Covid-19 shock in a timely manner. This has helped to mitigate the devastating impacts of the pandemic on the Chinese economy. 283 Godfrey Yeung INTRODUCTION The outbreak of Covid-19 leading to the lock-down in Wuhan on January 23, 2020 and the subsequent pandemic had significant im- pacts on the Chinese economy. China’s policy response regarding the banking system has helped to mitigate the devastating impacts of pandemic on the Chinese economy. Before we review the measures implemented by the Chinese gov- ernment, it is important for us to give a brief overview of the roles of two major group of actors (institutions) in the banking system. -
Mobile Customer Engagement and the Rise of the App-Based Banking
MOBILE CUSTOMER ENGAGEMENT AND THE RISE OF THE APP-BASED BANKING LANDSCAPE APRIL 2019 | TATA COMMUNICATIONS © 2019 Tata Communications. All Rights Reserved. TATA COMMUNICATIONS and TATA are trademarks of Tata Sons Limited in certain countries. TRANSFORMATION: MOBILE MESSAGING EXCHANGE Contents A new golden age of mobile banking? ....................................................... 3 Creating the right service delivery channel ................................................ 4 What role will traditional SMS services have to play in a new banking landscape? ... 5 Finding a way forward ......................................................................... 6 Working with Tata Communications for Mobile Customer Engagement in the Banking Industry ................................................................................ 7 2 For more information, visit us at www.tatacommunications.com. © 2019 Tata Communications. All Rights Reserved. TATA COMMUNICATIONS Contact us Share and TATA are trademarks of Tata Sons Limited in certain countries. TRANSFORMATION: MOBILE MESSAGING EXCHANGE A NEW GOLDEN AGE OF MOBILE BANKING? The ubiquity of mobile phones has made them an ideal channel for mobile banking services. Research from Ovum indicates that retail bank investment into digital banking technology will achieve 5.2% CAGR (2018-2022) 1, It is to be assumed that a significant portion of this will target mobile banking applications and related services, and the growth rate is significantly higher than comparable investment in other IT areas, such as ATM, contact centre services or even fraud and security spending1. Emerging markets have proven particularly open to mobile banking services as the mobile infrastructures in these regions is often more advanced (and less expensive to deploy) than the fixed-line alternative. Traditionally SMS-based services have been the mainstay of mobile banking, but this has changed in developed markets with the advent of smartphones and the rise of the app economy. -
China: a New Paradigm in Branchless Banking?
China: A New Paradigm in Branchless Banking? Leesa Shrader and Eric Duflos March 2014 1 Acknowledgments This paper includes input from Stephen Rasmussen (CGAP) and Peter Zetterli, Stefan Staschen, Mingyao Zhou, and Lingjun Wang (consultants). The authors especially thank Stephen Rasmussen, and Greg Chen (CGAP) for reviewing the report, and the IFC Advisory Team in China: Fangfang Jiang, Yolanda Yun Zhu, and Zhifang Luo for their great collaboration during the field visits. The authors also thank Susan Pleming and Anna Nunan (CGAP) for editing the report. The authors would like to thank IFC, PBOC, China Union Pay, F-Road, and the Postal Savings Bank for their support for field work during field evaluation of the agent banking pilots in China, as well as Shift Thought Ltd for its June 2013 special report for CGAP, “Digital Money in China.” GENERAL BENCHMARKS Population: 1,351 billion (2012) (World Bank 2012b) Urban population: 52% urban, 48% rural (2012) (World Bank 2012b) Population below poverty line: 13.4%—128 million (2011) (World Bank n.d.) GNI per capita $9,040 (2012) (World Bank 2012b) Gini coefficient: 0. 474 (2012) (Economist 2013c) Number of SIMs: 1.104 billion (December 2012) (Ericsson 2013, p. 2) Commercial bank branches per 100,000 adults: 7.72 (2012)1 ATM per 100,000 adults: 37.51 (IMF 2012a) Towns/villages with no access: 1,865 from total 40,466 (2012) (Tianqi 2013) % of adults who have used a bank account in the past 12 months: 64 (World Bank 2012a) Household loan accounts with commercial banks per 1,000 adults: 846.74 (IMF 2012a) Internet users: 564 million (2012) (China Internet Network Information Center 2013) 1 World Bank, Commercial Bank Branch Data 2012, accessed 29 January 2014. -
RCS and Payments Discussing RCS As a Payments Channel and Its Potential Under PSD2 Strong Customer Authentication February 2020
RCS and Payments Discussing RCS as a payments channel and its potential under PSD2 Strong Customer Authentication February 2020 About the GSMA About Consult Hyperion The GSMA represents the interests of Consult Hyperion is an independent strategic mobile operators worldwide, uniting more and technical consultancy, based in the UK than 750 operators with over 350 and US, specialising in secure electronic companies in the broader mobile transactions. With over 30 years’ experience, ecosystem, including handset we help organisations around the world exploit and device makers, software companies, new technologies to secure electronic equipment providers and internet payments and identity transaction services. companies, as well as organisations in From mobile payments and chip & PIN, to adjacent industry sectors. The GSMA also contactless ticketing and smart identity cards, produces the industry-leading MWC events we deliver value to our clients by supporting held annually in Barcelona, Los Angeles them in delivering their strategy. We offer and Shanghai, as well as the Mobile 360 advisory services and technical consultancy Series of regional conferences. using a practical approach and expert knowledge of relevant technologies. Hyperlab, For more information, please visit the our in-house software development and GSMA corporate website at testing team, further supports our globally www.gsma.com. Follow the GSMA on recognised expertise at every step in the Twitter: @GSMA. electronic transaction value chain, from authentication, access and networks, to databases and applications. For more information contact [email protected] ABSTRACT Rich Communication Service (RCS) was first defined around 2007/8 and was taken on by GSMA as the protocol to replace Short Message Service (SMS). -
Mobile Banking Authentication Secures Your App Security Platform While Eliminating the Need for Hardware Tokens Or One-Time Passwords
Account Entersekt Protection solutionsMobile 2015 Banking authentication The Entersekt Entersekt’s solution for mobile banking authentication secures your app security platform while eliminating the need for hardware tokens or one-time passwords. Our product, Transakt, lies at the center of all of our solutions. Transakt uses industry-standard digital certificates to deliver the strongest possible device identification. These can be combined with a PIN, password, or fingerprint scan to identify the user and enable easy yet secure access to your mobile banking app. Transakt also creates a secure communication channel between your financial institution and your customers’ mobile devices. This enables you to send real-time requests to your users to authenticate sensitive transactions. Their responses are digitally signed, supporting nonre- pudiation, then encrypted and returned. Because the Transakt channel is truly out of band, Transakt counters all phishing attacks, man-in-the- middle exploits, and other kinds of digital fraud. Your institution retains complete control over user registration, which is independent of mobile networks and SIM cards. If a user’s phone is stolen, the certificate is revoked, immediately rendering the application unusable. What makes Transakt deploys a unique X.509 digital certificate to each mobile device. This robustly Transakt unique? identifies the device and creates a secure, mutually authenticated connection between it and the Transakt Secure Gateway – a FIPS 140-2 Level 3 hardware appliance installed behind the bank’s firewall. Typical implementation Mobile device A security token is retrieved from the Transakt Secure Gateway via a completely out-of-band channel. This token is used to Mobile banking app App server authenticate transaction requests originat- Application request and token ing from the mobile banking app. -
Internet Self Service Faqs
Internet Self Service FAQs General Questions .............................................................................................................................................. 2 What is Mobile Banking? 2 Is Mobile Banking secure? 3 Is my personal or financial information stored on my phone? 3 Are there fees to use Mobile Banking? 3 Which accounts can I access in Mobile Banking? 3 How current is the account and transaction information? 3 Can I add more than one mobile phone? 3 What if my phone number changes? 3 What if my phone is lost or stolen? 3 Which phones can I use for Mobile Banking? 4 Which mobile service carriers support Mobile Banking? 4 I have a prepaid plan. Can I use Mobile Banking? 4 How do I stop using Mobile Banking on my phone? 4 Registration Questions ..................................................................................................................................... 4 How do I get started with Mobile Banking? 4 Do I have to agree to the Terms and Conditions to use Mobile Banking? 4 Can I register multiple users to the same phone? 4 I received my activation code but never used it—what do I do now? 4 I haven’t received the activation code on my mobile phone. What should I do? 4 Alert Questions .................................................................................................................................................... 6 What are alerts? 6 What is the difference between the text messaging service and the alerts service? 6 How do I stop receiving alerts? 6 Text Messaging Service -
Snooping Passcodes in Mobile Payment Using Wrist-Worn Wearables
WristSpy: Snooping Passcodes in Mobile Payment Using Wrist-worn Wearables Chen Wang∗, Jian Liu∗, Xiaonan Guo†, Yan Wang‡ and Yingying Chen∗ ∗WINLAB, Rutgers University, North Brunswick, NJ 08902, USA †Indiana University-Purdue University Indianapolis, Indianapolis, IN 46202, USA ‡Binghamton University, Binghamton, NY 13902, USA [email protected], [email protected], [email protected] [email protected], [email protected] Abstract—Mobile payment has drawn considerable attention due to its convenience of paying via personal mobile devices at anytime and anywhere, and passcodes (i.e., PINs or patterns) are the first choice of most consumers to authorize the payment. This paper demonstrates a serious security breach and aims to raise the awareness of the public that the passcodes for authorizing transactions in mobile payments can be leaked by exploiting the embedded sensors in wearable devices (e.g., smartwatches). We present a passcode inference system, WristSpy, which examines to what extent the user’s PIN/pattern during the mobile payment could be revealed from a single wrist-worn wearable device under different passcode input scenarios involving either two hands or a single hand. In particular, WristSpy has the capability to accurately reconstruct fine-grained hand movement trajectories and infer PINs/patterns when mobile and wearable devices are on two hands through building a Euclidean distance-based model and developing a training-free parallel PIN/pattern inference algorithm. When both devices are on the same single hand, Fig. 1. Mobile payment examples and representative passcode input scenarios. a highly challenging case, WristSpy extracts multi-dimensional features by capturing the dynamics of minute hand vibrations from moderate accuracy (< 10% in 5 tries) because it is hard and performs machine-learning based classification to identify to capture fine-grained hand movements of the user. -
The New Normal: Market Cooperation in the Mobile Payments Ecosystem ⇑ Jonas Hedman , Stefan Henningsson
Electronic Commerce Research and Applications 14 (2015) 305–318 Contents lists available at ScienceDirect Electronic Commerce Research and Applications journal homepage: www.elsevier.com/locate/ecra The new normal: Market cooperation in the mobile payments ecosystem ⇑ Jonas Hedman , Stefan Henningsson Department of IT Management, Copenhagen Business School, Howitzvej 60, 2000 Frederiksberg, Denmark article info abstract Article history: The introduction of mobile payments is one of many innovations that are changing the payment market. Received 26 November 2014 This change involves new payment service providers entering this lucrative market, and meanwhile, the Received in revised form 19 March 2015 existing stakeholders are trying to defend their oligopolistic positions. The mobile payment market Accepted 19 March 2015 cooperation (MPMC) framework in this article shows how the digitalization of payments, as a technology Available online 26 March 2015 innovation, affects the competition and collaboration among traditional and new stakeholders in the payment ecosystem at three levels of analysis. We do this by integrating theories of market cooperation Keywords: with the literatures on business and technology ecosystems. The MPMC framework depicts technology- Case study based market cooperation strategies in the context of recent battles in the mobile payments ecosystem. iZettle Market cooperation In these battles, the competitors can use technology either in defensive build-and-defend strategies to Mobile payment protect market position, or in offensive battering-ram strategies for ecosystem entry or position improve- Payment ecosystem ment. Successful strategies can lead to: (1) Ricardian rents, based on operational efficiency advantages Payment markets traceable to the firm’s position relative to suppliers and monopoly power; and (2) Bainian rents, resulting PayPal from the extent the firm is able to resist price competition in the market. -
Next-Generation Retail Banking in China Building Eight Transformational Capabilities
Asia Retail Banking Practice Next-generation retail banking in China Building eight transformational capabilities March 2012 Jan Bellens Emmanuel Pitsilis Jun Xu Asia Retail Banking Practice Next-generation retail banking in China Building eight transformational capabilities March 2012 Jan Bellens Emmanuel Pitsilis Jun Xu Next-generation retail banking in China 5 Building eight transformational capabilities Rapid but uneven growth, weak return Retail banking in China has grown at breakneck speed in the last decade. During the period 2000–10, retail deposits grew by 4.5 times and loans by a staggering 17 times. Products per customer have increased to four from just above one. All banks combined, there are more than 200,000 employees dedicated to retail today compared with almost none ten years ago. Retail product offerings, the talent pool, channels, and infrastructure have all grown dramatically in scale and quality. More exciting days are ahead. By 2015, China will become the second-largest retail banking market in the world, after the United States. By 2020, total retail banking revenue is expected to reach $280 billion1 a year from $127 billion today, new research from McKinsey & Company shows (Exhibit 1). Exhibit 1 China will become the second-largest retail banking market in the world by 2015, with an annual revenue pool of around $280 billion by 2020. Revenue of retail banking post-risk, top 5 countries $ billion 2011E 2015E 2020E United United United 443 602 754 States States States Japan 141 China1 161 China1 279 China1 127 Japan 156 Japan 174 Germany 83 Germany 89 Germany 107 United United United 63 88 104 Kingdom Kingdom Kingdom 1 China forecast based on conservative scenario. -
Tencent and China Mobile's Dilemma
View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by AIS Electronic Library (AISeL) Association for Information Systems AIS Electronic Library (AISeL) Pacific Asia Conference on Information Systems PACIS 2014 Proceedings (PACIS) 2014 FROM WECHAT TO WE FIGHT: TENCENT AND CHINA MOBILE’S DILEMMA Jun Wu School of Economics and Management, Beijing University of Posts and Telecommunications, [email protected] Qingqing Wan School of Economics and Management, Beijing University of Posts and Telecommunications, [email protected] Follow this and additional works at: http://aisel.aisnet.org/pacis2014 Recommended Citation Wu, Jun and Wan, Qingqing, "FROM WECHAT TO WE FIGHT: TENCENT AND CHINA MOBILE’S DILEMMA" (2014). PACIS 2014 Proceedings. 265. http://aisel.aisnet.org/pacis2014/265 This material is brought to you by the Pacific Asia Conference on Information Systems (PACIS) at AIS Electronic Library (AISeL). It has been accepted for inclusion in PACIS 2014 Proceedings by an authorized administrator of AIS Electronic Library (AISeL). For more information, please contact [email protected]. FROM WECHAT TO WE FIGHT: TENCENT AND CHINA MOBILE’S DILEMMA Jun Wu, School of Economics and Management, Beijing University of Posts and Telecommunications, Beijing, China, [email protected] Qingqing Wan, School of Economics and Management, Beijing University of Posts and Telecommunications, Beijing, China, [email protected] Abstract With the coming of mobile internet era, Giants in the different industry begin to compete face by face. This teaching case presents the event of charging for WeChat in China context to delineate the new challenges that Online Service Provider and Mobile Network Operator will face. -
CHINA Executive Summary
Underwritten by CASH AND TREASURY MANAGEMENT COUNTRY REPORT CHINA Executive Summary Banking The Chinese central bank is the People’s Bank of China (PBC). Bank supervision is performed by the China Banking Regulatory Commission (CBRC). China applies central bank reporting requirements. These are managed by the State Administration for Foreign Exchange (SAFE), according to the rules set out in the Detailed Rules on the Implementation of Procedures for the Declaration of Data on International Payments (revised 2003) and relevant regulations. Resident entities are permitted to hold foreign currency bank accounts domestically and outside of China, but residents must first gain approval from SAFE for foreign currency bank accounts held abroad. Non-resident entities are permitted to hold foreign currency bank accounts within China. Non-residents can hold fully convertible renminbi (RMB) trade settlement accounts inside and outside of China but these accounts are subject to restrictions and PBC approval. China has five major commercial banking institutions, which control just over 37% of the country’s banking assets. There are also three government controlled policy banks, established in 1994. In addition, there are 5 private banks, 12 joint-stock commercial banks, 859 rural commercial banks, 71 rural cooperative banks, 1,373 rural credit cooperatives, 1311 village banks, as well as 133 city commercial banks that specialize in retail and corporate commerce. The government indirectly controls the country’s commercial banks by maintaining a majority share in each bank. There is an increasing foreign banking presence in China – 412 foreign institutions have established operations in China and 39 foreign banks have become locally incorporated, operating 315 branches.