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Tuesday, November 20, 2018, 22:25
Mobile platforms still top choice of consumers in China
By Chai Hua
Tuesday, November 20, 2018, 22:25 By Chai Hua

In this undated photo, a consumer pays with Alipay after ordering food at the first self-service restaurant in Hangzhou, Zhejiang province. (PHOTO / XINHUA)

SHENZHEN – Despite having to stick their necks out, consumers in China have clung on strongly to online financial platforms, notably social media and mobile payment pioneers Alipay and WeChat Pay, in managing their liquid capital, with the pool of users having swelled to more than half of the total.

The trend was reflected in a survey jointly conducted by WeBank – China’s first private and digital-only bank backed by tech behemoth Tencent Holdings – the global Boston Consulting Group and 36 Chinese banks.

The reasons for users sticking to internet-based financial platforms are mainly for convenience, simplicity, speed and the diverse products on offer. 

Liu Jiang, Assistant General Manager, WeBank

The survey shows that only 33 percent of 13,000 respondents in seven cities turned to banks for financial investment products – down 7 percent over last year.

Besides wealth management, banks also lag behind online platforms in terms of payment, shopping and even credit consumption, but remain dominant in capital transfers – at almost 74 percent.

“The reasons for users sticking to internet-based financial platforms are mainly for convenience, simplicity, speed and the diverse products on offer,” said Liu Jiang, assistant general manager of the direct banking department at WeBank.

READ MORE: China to strengthen regulation over internet finance businesses

She urged banks to change the stereotype of low interest rate, high threshold for consumers to invest in their products and less flexible term choices of products.

“Besides, their descriptions of investment products are complicated. The advantages need to be clearly defined and the application process simplified,” said Liu.

Consumers also paid great attention to the risks associated with wealth management products. About 14 percent of those interviewed in the poll expressed apprehension over the risks involved when a product’s annual interest rate exceeds 6 percent, compared with 9 percent of respondents in last year’s survey.

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As a result, leading online platforms have won the trust of most consumers. Alipay – the online payment arm of tech giant Alibaba Group Holding – accounted for almost 70 percent of users opting to buy wealth management products, followed by WeChat Wallet and apps of traditional banks.

The survey also found that 17 out of 20 mainstream banks on the mainland have at least two apps for one bank, causing unnecessary complications for users.

grace@chinadailyhk.com

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