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Financial outsourcing to grow in China

By Gao Yuan (chinadaily.com.cn)
Updated: 2010-11-01 14:50

The financial services outsourcing business is likely to enjoy significant growth in China, analysts said at a financial services outsourcing summit meeting in Kunshan, Jiangsu province, China Business News reported on Monday.

The growth of this sector likely will occur in the near future, said Ian Mullen, chairman of the International Banking Federation. He added that the international financial community is recovering from the economic crisis, and China has become a dynamic growth engine of the world economy.

China's financial facilities have brought the financial services outsourcing business to a higher level since 2009, said Yang Peng, chief executive officer of China Data Group, a nationwide business process outsourcing provider.

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Yang said that technical support companies, information technology providers and other third-party service companies have been thriving since last year.

The differentiation in financial service is becoming more significant, Yang added. Financial services outsourcing companies vary from private banking services to electronic payment services, he said.

He added that small and medium-sized companies are likely to give their clients creative ideas to expand business.

However, other analysts said that China's financial services outsourcing business is not mature enough, since it is still relatively new to the country.

Some companies are only focusing on cutting labor costs while overlooking implicit costs such as time management, Yang said.

Financial services outsourcing companies should establish long-term, strategic relationships with their clients, and not just offer temporary services, he said.