Baidu, who is often referred to as the Google of China, has joined forced with Citic Bank in order to provide financial services in the online sector. This is going to put Baidu into direct competition with Tencent and Alibaba who are also active in the online financial world.
Introducing Baixin Bank
The combination of Baidu and Citic Bank is going to become Baixin Bank. The mission that the bank has released is managing “wealth for the people and finance for the public, to develop an inclusive approach to finance, and to service the real economy”, as stated in their press release. However, this is only if they receive approval from the Chinese banking authority.
What makes Baixin Bank so special is the fact that they are offering a service that is not only ran by a company of the internet, but also by a traditional bank. This is something that other companies cannot compete with, including Alibaba and Tencent. Alibaba coupled with Ant Financial to create MyBank, while Tencent launched WeBank, both of which utilized online companies for their help and partnership.
You can learn more about Baidu, here
What Baidu and Citic Bank Bring to the Partnership
Baidu has already stated that they will be bringing a lot to the partnership and success of the new bank. Baidu has been tracking users, in terms of their behavior and this data can be useful in directing advertisements for financial products on the market. Citic is bringing their financial knowledge to the table. Combined, the two are going to be bringing a new way of banking that is insightful to the market.
Find out if Baidu is in for a successful or disappointing 2016, here
The CEO of Baidu, Robin Li stated:
“This is the first in-depth cooperation between an Internet company and a traditional bank, representing an entirely new model of “internet + banking” – a bank that truly understands both the Internet and financial services.”
The combination of these two power houses is going to be extremely helpful to customers. Citic Bank has already stated that at the beginning of December, customers can make online transfers for free across China. This is just one of the benefits that this partnership is offering customers.