Trends in Small and Medium Banking in China

Since the late 1970s when market reforms first started to open Chinese markets to foreign companies, software companies have made continuous inroads into the market. Initially, many were focused on the ‘big-5’ banks. Although these banks are some of the largest, they are often some of the more conservative banks in the industry and typically have a very long refresh cycle. Some of the best fintech opportunities today lie with Small and Medium banks.

Challenged by the market dominance and tremendous capital bases of the large banks, small and medium banks in China have sometimes struggled to make inroads, yet through a combination of sub-segment focus, innovative products and better customer service, small and medium banks have worked sometimes successfully and sometimes not too successfully to differentiate themselves in the market.

A key method of differentiation has been through the adoption of new and innovative IT solutions to help the bank overcome customer service challenges and provide something different to the market. In this Small and Medium Banks in China report, we look at some of the key trends in the sub-segment as well as identify IT gaps and needs giving the reader a real sense of where the IT opportunities and challenges are in the small and medium bank segment in China.

Clients of Kapronasia’s Asia Financial Advisory Service can download this report. For more information on this report or any other of our reports, please email us research@kapronasia.com.