Commercial banks bet big on fintech

A growing number of Chinese commercial banks are setting up their own financial technology companies to explore a market-driven mechanism for development of the sector.

China Minsheng Bank Corp Ltd, a Beijing-headquartered national joint-stock commercial lender, launched a tech subsidiary called Minsheng Fintech Corp Ltd on Tuesday. The move follows in the footsteps of five other listed commercial banks, such as China Construction Bank Corp, China Merchants Bank Co Ltd and Industrial Bank Co Ltd.

Apart from exploring a market-driven mechanism for the commercialization of scientific research achievements, the tech subsidiaries of these banks also aim to export fintech solutions to smaller banks and other financial institutions, according to China Minsheng Bank.