Viewpoint

1.  At present, the domestic banking industry possesses 500,000 desktop PCs, and 50,00 servers. Banking Cards, from its birth in 1985 to September of 2000, have been distributed and sold in 15 banks nationwide, with total of 250 million cards. More than 37,000 ATMs and 290,000 POSs have been purchased by different financial institutions.

2. According to the forecast, more than 10 billion RMB will be put into the development of Information Implementation in the banking industry.

3.     High-tech developments in commercial banks in later years will be focused on the construction of giant data centers, development of new types of integrated handling systems and exploration of new uses of the Internet, etc.

4.     Computerization of financial service will become the most productive in the entire financial industry. With the approach of electronic age in financial services, on-line bank service will become the first priority in commercial banking development. Although the revenue from on-line banks will not be able meet advertisement charges, banks still spare no efforts in implementing on-line banking services. They are confident in on-line banking’s future development, and are anxious to capture this attractive market in advance.

I. Overview on 2000 market conditions

 1. Economy conditions

a. International economy conditions

b. Domestic economy conditions

 2. Conditions of the Financial Industry

a. Trends of the International Banking Industry

b. Trends of the Domestic Banking Industry

 3. Conditions of the IT Industry

a. Status of International IT Industry

b. Status of Domestic IT Industry

II. IT Products and Application Structure in the Financial Industry in 2000

1. Computerization Process in the Financial Industry

2. Market Structure for IT Products in Banks

a. People’s Bank

b. Industrial and Commercial Bank of China

c. Agricultural Bank of China

d. Bank of China

e. China Construction Bank 

3. Application Structure of IT Technology in the Banking Industry

a. Infrastructure

b. Payment and Clearing Systems

c. Information Management Systems and Office Automation Systems

Chapter Highlights

Information about the 1999 and 2000 product volume, market share, and procurement volume of desktop PCs, laptops, servers, routers, and exchangers, as well as machines specially used in finance (such as bill printers, accounting book printers, and ATMs) was collected from the People’s Bank, the Bank of Industry and Commerce, the Bank of Agriculture, the Bank of China and Construction Bank of China. The formation and trends of the market for applications of IT products in banks is also analyzed. In addition, information on the procurement flow of IT equipment used in commercial banks is included in this Chapter. Lastly, information development and overall application in banking system is introduced in detail in terms of network infrastructure, construction of application systems, information management systems and office automation systems.

III. Service Structure of IT in Financial Industry in 2000

1. Service structure of suppliers

2. Service structure of system integration suppliers

3. Trends in IT Service

Chapter Highlights:

Detailed introduction to service structure of suppliers and system integration suppliers is included in this Chapter. There is then an analysis of IT service in the banking market.

IV. Main factors influencing IT development in the domestic banking industry

1. Entry into WTO

2. Overall Development of Banking Industry

3. Development of IT Technology

a. On-line banking service has become the focus of strategy for the development of commercial banks

b. Emergence of Financial IC Card

4. Industry Policy

 

Chapter Highlights

With China’s entry into WTO, the preliminary competition between foreign banks and domestic banks will be emphasized in the credit card market. The initiation and creation of finance might exert crucial influence on the survival and development of China’s financial industry. At that time, not only will interactions between banks and their customers be altered, but service-providing, promotion and transaction handling will also change. According to the evolvement of the international financial industry, complete manual handling of payment is replaced by a modern electronic clearing system, namely, on-line financial service. Because the advantages of finance IC Cards, such as high security and independent operability, meet the demands of e-commerce payment, and it can also play a role in reducing risks in bank transactions. It is predicted that finance IC Card will be launched in the year 2001.

V. Forecast on the development of IT service in the financial industry

   1. Preliminary Planning of Information Implementation in Banking Systems during “Tenth Five Year Plan”

a. Construction of financial data communication networks

b. Construction of payment systems

c. Information Management and Office Automation Systems

d. Computer Security Systems

   2. Trends and Forecast of IT applications in the Banking Industry

Ⅵ. Application of IT in banking industry and recommendation on service

Chapter Highlights

On the basis of present computerization in the financial industry, combined with the blueprints from the “Tenth Five-year Plan”, suggestion and recommendation are made to the appropriate authorities, suppliers and system integration providers.