China’s five state-owned banks, namely Industrial and Commercial Bank of China (ICBC), Agricultural Bank of China (ABC), Bank of China (BOC), China Construction Bank (CCB) and Bank of Communications (BOCOM), held a joint contract signing and press release ceremony under the theme of “strengthening account management and promoting inclusive finance” in Beijing on February 25. Representatives from the Payment and Clearing Association of China and nine commercial banks, including the Postal Savings Bank of China, China Minsheng Bank, Bank of Beijing, Beijing Rural Commercial Bank, MYbank and WeBank, witnessed the contract signing event.

After the contract is signed, the five banks will take a series of measures to implement the latest account management policy of the People’s Bank of China. First is to protect the security of funds and information of customers better. The real-name system for personal bank accounts will be implemented with due care to further strengthen customer information security protection, maintain strict authentication of personal customer identities during account opening and avoid leakage of customers’ account information. Innovation and risk control in the payment field will be consistently strengthened to provide customers with more convenient and safer payment products and effectively fulfill banks’ responsibility to protect customer information security and financial order. Secondly, account service management will be continuously improved. According to PBOC rules for account classification management, the labeling of Class I, Class II and Class III existing accounts will be completed by April 1. System upgrading will be completed as soon as possible to support customers to open Class II and Class III accounts online or on self-service equipment and meet their demand for deposits, purchase of wealth management products or other financial products as well as purchases and bill payments in designated amounts. Also, in response to emerging Internet frauds and online payment risk, the five banks will take the initiative in opening Class III accounts for customers, which will, if activated by customers, allow small-value purchases and bill payments through linked non-bank payment accounts and thus separate the “coffer” from “wallet” and effectively safeguard funds. Thirdly, inter-bank open cooperation is promoted. After system upgrading, the five banks will take the lead in verifying customers’ bank account information and providing customers with quick and convenient online inter-bank account opening service. The five banks are willing to cooperate with other interested commercial banks in inter-bank customer account services. Fourthly, inclusive finance will be put deeply into practice to enhance customer services. Customers can make domestic RMB transfer and remittance through mobile banking free of charge, and will not be charged for domestic RMB transfer and remittance through Internet banking if the transaction value is less than RMB 5,000, which reduces the charge payment of customers.

The PBOC issued the Notice on Improving Personal Bank Account Services and Strengthening Account Management on December 25 last year to further strengthen real-name account management of commercial banks, improve personal bank settlement account services and facilitate the opening and use of personal bank accounts by depositors. The notice has a far-reaching and significant influence in fostering a sound social financial order, providing financial and payment services that are more secure, more convenient and of better quality and implementing inclusive finance. This contract signing represents a move of state-owned large commercial banks to implement inclusive finance, protect depositors’ interests and improve banking services in response to government calls.

At the press conference, the five banks declared that they have covered the broadest base of personal customers in China and have the duty and obligation to further improve financial order in response to the government call in an effort to provide more inclusive, secure and convenient bank account services. Also, with respect to implementing inclusive finance and strengthening personal bank account management, the five banks called for all banking institutions and the general public to carry out requirements of the PBOC notice, improve internal account management, deepen inter-bank opening and cooperation and provide customers with bank account services featuring greater openness, convenience, security and inter-connectivity while effectively implementing the real-name system for personal bank accounts.