Some bank outlets can't handle cash collection and payment business!
Zhongguancun Bank
The cash collection and payment business will be suspended from April 1, and the suspension channels include the counters of business outlets and the bank's ATM machine self-service channels.
Liaoning Zhenxing Bank
From March 1, cash services such as cash deposits and withdrawals at counters, change exchanges, damaged currency exchanges, and self-service equipment deposits and withdrawals will be suspended.
Why do these two banks stop cash collection and payment business?
What to do if depositors are in a hurry to withdraw cash
Will the bank follow up?
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There are currently 19 private banks in the country
As an important breakthrough in deepening the reform of the banking industry, the first batch of five pilot private banks were approved and established in 2014, namely Shenzhen Qianhai WeBank, Shanghai Huarui Bank, Tianjin Jincheng Bank, Zhejiang Internet Commercial Bank, and Wenzhou Civil and Commercial Bank. Bank.
At present, the establishment of private banks has changed from a pilot program to a normalization.
So far, 19 private banks across the country have opened.
In addition to the above-mentioned 5 first batch of pilot banks, the other 14 are: Hunan Sanxiang Bank, Chongqing Fumin Bank, Sichuan Xinwang Bank, Beijing Zhongguancun Bank, Jilin Yilian Bank, Wuhan Zhongbang Bank, Fujian Huatong Bank, Weihai Blue Ocean Bank, Jiangsu Suning Bank, Meizhou Merchants Bank, Anhui Xin'an Bank, Liaoning Zhenxing Bank, Jiangxi Yumin Bank, Wuxi Xishang Bank.
Comprehensive Central Broadcasting Network, Economic Daily, Shanghai Securities News, etc.
1 Two private banks stop cash business
Recently, Beijing Zhongguancun Bank announced on its official website that the bank will suspend cash collection and payment services from April 1, 2022.
The bank said that since April 1, customers can handle various businesses other than cash receipts and payments through the bank’s mobile APP and business outlets; if they really need cash services, customers can transfer money to other banks through the bank for processing. , the bank waives transfer fees.
As early as the beginning of January, another private bank in the northern region, Liaoning Zhenxing Bank, also issued a similar announcement, stating that it will stop cash deposits and withdrawals, change exchanges, damaged currency exchanges, and self-service from March 1, 2022. Cash business such as equipment deposit and withdrawal.
The bank also stated that if customers hold the bank's debit card, they can continue to handle cash withdrawals at ATM machines with the "UnionPay" logo, and they can also handle fund transfers through the bank's mobile banking and other channels.
The reasons for the above-mentioned business adjustments are related to the digital transformation of the two banks and their efforts to increase their online business.
This is actually relatively easy to understand - in the digital age, the average out-of-counter rate in the banking industry is increasing year by year, and the trend of online business is obvious.
According to statistics from the China Banking Association, as of 2020, my country's banking financial institutions had 370.872 billion off-the-counter transactions, a year-on-year increase of 14.59%, and the industry's average electronic channel diversion rate was 90.88%.
Among them, mobile banking transactions reached 191.946 billion, a year-on-year increase of 58.04%.
In addition, private banks have their own particularities since their birth. In terms of positioning, they mainly focus on financial services in weak areas such as small and medium-sized enterprises, "agriculture, rural areas and farmers" and communities, and achieve dislocation competition and complementary development with existing banks.
Moreover, under the principle of "one bank, one store", most private banks do not have physical branches.
"It is not a sudden thing that a private bank has stopped its over-the-counter cash-related business." Dong Ximiao, a part-time researcher at the Financial Research Institute of Fudan University, told reporters that in the future, the business types of private banks will be more different, and private banks will focus on a certain segment of the field. There will be more and more banks, and these will be determined by the market and by the banks themselves.
2 Private Banks
significant developmental differentiation
In the process of interest rate liberalization, private banks cannot rely on deposit and loan interest spreads and monopoly licenses to survive like large banks. Moreover, private banks can only set up one offline branch, with less customer accumulation and narrow storage channels. The debt side mainly relies on peers. Financing is expensive.
At present, the total assets of 19 private banks in China exceed one trillion yuan, and their operation can be described as "several joys and sorrows", and the head effect is obvious.
Except for WeBank, MYbank, etc., which have taken differentiated development paths, formed their own characteristics and achieved profitability, most private banks are hardly optimistic.
WeBank is the first private bank with assets exceeding 300 billion yuan.
According to the bank's 2020 annual report, the bank achieved operating income of 19.88 billion yuan, a year-on-year increase of 33.7%, and net profit increased by 25.5% year-on-year, close to 5 billion yuan.
As of the end of 2020, the total assets of WeBank were 346.4 billion yuan, an increase of 19% from the beginning of the year.
MYbank's data in 2020 is far behind that of WeBank, but in 2021, its business development will catch up with great strides. Not only will its asset scale exceed 300 billion yuan, but its performance will also stabilize.
According to public information, in the first three quarters of 2021, MYbank achieved revenue of 10.083 billion yuan, a year-on-year increase of 62.63%; net profit of 1.789 billion yuan, a year-on-year increase of 108.02%; as of September 30, 2021, the bank's total assets were 3744.15 RMB 100 million, an increase of 20.29% over the end of 2020; total liabilities were RMB 357.217 billion, an increase of 20.16% over the end of 2020.
Suning Bank, which recently disclosed its annual performance in 2021, has exceeded 100 billion yuan in assets for the first time, and is also the third private bank with assets exceeding 100 billion yuan.
In 2021, the bank's operating income and net profit will be 3.35 billion yuan and 620 million yuan respectively, a year-on-year increase of 19.62% and 45.20% respectively.
The vast majority of other private banks are really "small" banks, with assets of less than 100 billion yuan.
There are also some private banks, where the senior management team changes frequently, and their operations are also facing a lot of challenges.
Especially in recent years, due to the influence of Internet deposit and loan supervision policies, many private banks have not had a good time.
For banks, deposits are the foundation of their business.
With deposits, there is a better ability to provide credit.
Some private bank management personnel have previously stated that the source of liabilities is still the primary issue for the development of private banks.
For example, Fujian Huatong Bank will increase profits but not revenue in the first three quarters of 2021, both assets and liabilities have shrunk, and deposits have fallen sharply.
As of the end of September 2021, the bank's total assets were 16.767 billion yuan, down 25.82% from the end of 2020, of which the balance of various loans was 8.614 billion yuan, down 31.10% from the end of 2020; total liabilities were 14.619 billion yuan, down from the end of 2020 28.36%, of which the general deposit balance was 10.357 billion yuan, down 28.28% from the end of 2020.
3 Less demand from customers for cash collection and payment business
In recent years, under the background of the digital transformation of the banking industry, the number and amount of online transactions of financial institutions such as banks have continued to increase, while the activity of offline business transactions is relatively low.
Dong Ximiao said that when a commercial bank starts or exits a business, it will make a decision based on factors such as customer needs, service capabilities and regulatory policies.
From the perspective of customer demand, these two banks mainly serve small and micro enterprises, the main products are credit products, and customers have less demand for cash collection and payment business.
From the perspective of service capabilities, private banks are limited by the status quo of "one line for one line", and do not have the ability to provide more cash collection and payment services, and the high cost of cash collection and payment business poses pressure on private banks' operations.
Yin Zhentao, director of the Financial Technology Research Office of the Institute of Finance, Chinese Academy of Social Sciences, said that Zhongguancun Bank and Liaoning Zhenxing Bank, as private banks, are positioned to support the regional economy, small and medium-sized private enterprises and ordinary financial consumers.
In recent years, the transformation to Internet banking has also become a major trend in the development of private banks. Some Internet private banks and direct selling banks have not even launched cash collection and payment services from the very beginning. Whether Zhongguancun Bank and Liaoning Zhenxing Bank will also have such plans in the future is worthy of attention.
Despite this, the suspension of cash collection and payment business also brings inconvenience to depositors to handle cash business to a certain extent.
So is it reasonable for these two banks to cancel the cash collection and payment business?
Experts said that the suspension of cash collection and payment business by private banks is in line with regulatory requirements.
In addition, some small and medium-sized banks are currently reducing the number of offline outlets in order to reduce business input costs, which is a major trend in the digital transformation of the banking industry.
4 Cash collection and payment business
will exist for a long time
However, for some businesses and individuals, cash collection and payment is still an indispensable financial service.
Fu Jun, a professor at the School of Law of the University of International Business and Economics and dean of the Department of International Law, said that, in the digital economy era, regulators can allow some small and medium-sized banks with small cash settlement businesses to suspend such businesses and respect the operational autonomy of these banks.
Secondly, for large banks, since the services of these banks involve more enterprises and individuals, the regulators should impose more restrictions on the suspension of cash settlement business of these banks to ensure that the cash collection and payment business can be extended to the community and society. sustainable supply.
Finally, out of consideration for fair competition among banks, legislative or administrative measures should be taken to give preference to banks that carry the public service of cash collection and payment services in approving innovative businesses or innovative products, and encourage banks to continue serving the community and society. Provide cash settlement services and fulfill social responsibilities.
Therefore, these two private banks plan to suspend the cash collection and payment business, which will help to concentrate more resources to meet the needs of core customers and provide better services for individual industrial and commercial households without affecting the handling of customer business.
In the future, more private banks may stop cash collection and payment business.
But for my country's banking industry, the cash collection and payment business will exist for a long time, and users do not need to worry.
In the eyes of many people, going to a bank outlet to deposit and withdraw money is the basic business of a bank.
Some elderly people don't know how to operate online, and now suddenly announced the suspension, what should the elderly do with deposits and withdrawals?
In this regard, Guo Tianyong, director of the China Banking Research Center of the Central University of Finance and Economics, said: "Middle-aged and elderly people generally choose large commercial banks. If large banks cancel the over-the-counter cash business, the central bank and the China Banking and Insurance Regulatory Commission will intervene. demand, (large banks) cannot stop cash business over the counter.”
It is worth paying attention to, will there be other banks that will stop cash collection and payment business in the future?
Dong Ximiao believes that the cancellation of cash business by small banks to reduce costs has its own particularities, but a large number of banks will not follow suit in a short period of time.
Dong Ximiao said: "This is only a very small change, and it does not need to be over-interpreted. The business scale of these two private banks is very small, and the adjustment of a specific business is a manifestation of the ability to operate independently, and it has also undergone financial Approval from the management department. Its own cash business needs are small, it will not affect the satisfaction of customer needs, and will not affect the service to the real economy.”