The Chinese electronic firm Xiaomi is about to launch banking services in china. This tech giant is famous for making one of the best mobiles . It will launch bank through one of its subsidiaries. Xiaomi All Set to Launch Online Banking Service in China.
The name of bank has been officially announced ie; Sichuan XW Bank. This name has been finalized by Shareholders and regulators for the owner. This bank will be opened for customers in near future.
Xiaomi All Set to Launch Online Banking Service in China
This announcement has come at a time when Xiaomi is facing serious issues in terms of revenue generation. Due to low pricing and recent decrease in smartphone sales, the company is thinking on gaining money by other means including banks, software devices and software Eco-system.
Chinese technology companies keeps on investing in online bank. Previously WeBank was launched by Tencent Holdings,. This bank became the first operational online bank in 2015. It was later on followed by MYBANK that was controlled by Alibaba.
As Chinese larger bank are operational from ages . These traditional banks are owned by the state and largely serve state enterprise. Due to this private banks are not able to get financing and they are not able to build people trust to invest money. To tackle this issue government has started issuing licensee to private banks.
According to industry professionals these private banks which are sponsored by large technology companies will beat the china’s market of small enterprises and consumers. New venture is also working in collaboration with Xiaomi to get company’s long term profit growth.