E-banking is still open to threats
By Wang Zhenghua (China Daily)Updated: 2007-01-05 10:32
Ever since the Bank of China launched its first online banking services in
June 1996, other Chinese banks have wasted no time in jumping on the bandwagon,
to tap into the new lucrative market, expand their customer base, or offset the
disadvantage of not have sufficient branches.
Figures released last
month by the China Financial Certification Authority a joint venture of 13
leading commercial banks of China showed that the number of individual Internet
banking customers jumped 170 percent last year, to 40 million, while corporate
users skyrocketed 300 percent year-on-year.
Jiang Jianqing, ICBC's
chairman and president, intends to move 50 percent of the bank's business online
in four years and increase it to 70 percent in 10 years.
Critics,
however, point to a major problem in the development of online banking -
safety.
A growing number of customers, who fell victim to e-bank scams
and had their money siphoned off, are taking the banks to court.
A report
by the China Financial Certification Authority indicates that more than 60
percent of customers refuse to use online banking services because of security
concerns, a problem that has handicapped the healthy development of the
business.
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