| FDC Study: China Goes Beyond Cash |
| June 28, 2007 Category: General |
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Global banking, retail and payment services executives are optimistic about the prospects for electronic payments in China and are willing to tackle the challenges of this fast-growing market, says a recent study conducted by the Economist Intelligence Unit on behalf of First Data International.
One-hundred and fifty-two banking executives representing organisations from all over the world took part in the study. First Data commissioned the study to gain insights from both national and foreign banking, retail and payment services executives, regarding their experiences conducting business in China as early market entrants, and to identify and understand the challenges and opportunities for organisations that are currently considering market entry. According to the study, retail bankers are positive about all aspects of the Chinese consumer banking sector. Fifty-five percent of study respondents believe the prospects for credit cards and bank accounts are ‘highly promising’ over the next three years, 45 percent also highly rate the opportunities for debit cards and 40 percent for wealth and investment management solutions. The optimism expressed by bankers in the study is accompanied by a strong dose of realism. Forty three percent of retail bankers agree that it will be difficult to make a profit in the credit card market over the next three years, while just 21 believe it is possible. Tough competition for customers and other challenges stand in the way of profits today. Nevertheless, recognizing the scale of the market, and the early signs of change in the spending patterns of Chinese consumers, banks are willing to wait for profits. Additional key findings include:
More information about the study More News
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